Most property investors would be willing to give an arm and a leg in order to get a glimpse of what is to come. Unfortunately, most of us don’t have that option. Instead we’ve got to use available information to help us determine what Brisbane property prices will be in the future.
So the big question. Will they go up, will they go down or will they stay on par with today’s prices?
Using RP Data’s CoreLogic it’s been found that the number of houses for sale in Brisbane increased by 11% from February 2010 to February 2015. The number of units for sale in Brisbane also increased, but by less than 1% for the same period. The median house price for Brisbane during this time increased by 1.7% while the median unit price increased by 1.3%.
Overall the changes aren’t huge. If interest rates remain low it’s possible that this moderate growth may continue.
Another consideration is the demand side of the equation. For example, how much demand will there be in the next five years? Will there be enough population growth to sustain demand for property and keep it high in price?
To help figure out this piece of the puzzle we used some statistics from the Australian Bureau of Statistics.
Once upon a time Queensland was a golden child for population growth among Australia’s capital cities. However, in recent years population growth has slowed. From June 2014 to 2015, Queensland’s population grew by 1.2% (below the national average and fifth-fastest growing state overall). The number of overstate and interstate migrants has dropped which partially explains this slow down. However, the population growth rate for Greater Brisbane was slightly higher for this period at 1.6%
An upside to this is that there are predictions that many upcoming retirees from the baby boomer generation will possibly head north to the warmer weather and cheaper cost of living (including buying a house – we’re looking at you stamp duty!). This has the potential to increase population growth and create demand.
If Queensland can create jobs (and we are, there are a number of infrastructure projects currently in the pipeline collectively having the potential to generate almost 100,000 jobs!) to tempt people back to our state there is a chance that population growth may support and even increase the demand for property.
We can’t give you a crystal clear prediction of what’s likely to happen with Brisbane property prices in the next five years, but hopefully we’ve given you an idea of what may happen. To help keep yourself informed we recommend reading as many Brisbane property industry reports and publications as you. A great one is the quarterly REIQ Market Monitor report, read more about this report here.