Like all Brisbane property professionals, investors and enthusiasts we are excited to see what 2018 will bring our fair city. After the ups and down that 2017 brought, we think there’s a good chance 2018 will be a better year.
What did Australian and Brisbane property look like in 2017?
2017 was the year that the major Australian property markets shifted down a gear. Likely due to a number of converging factors including weak consumer confidence, tougher government policies and stricter lending requirements.
The 2017 results of the National Consumer Sentiment index showed a downbeat mood, with pessimists outnumbering optimists for most of the year. The rising costs of living, weak age growth, concerns around interest rates, deteriorating housing affordability and rising energy prices have all weighed on consumer confidence in 2017.
One consistency throughout the year was that the RBA kept interest rates on hold at 1.5%. Despite this, after five years of huge growth, Sydney and Melbourne median prices started to slow. Sydney prices even started to slide (if ever so slightly). On top of this auction clearance rates also slowed in 2017. This gear change has been pegged as a result of government policies put in place to safeguard part of our economy – debt levels in particular. Despite this, the Brisbane property market did fairly well with Brisbane LGA’s median house price reaching a new high of $665,000 during 2017.
So as these policies continue to disperse and impact upon the financial sector and property markets, what can we expect in 2018?
We’ll get to the future shortly, but first let’s take a look back and review what the property markets looked like 5 years back.
What did Australian and Brisbane property look like in 2012?
2012 was a mixed bag for property markets around Australia. The year kicked off with a fall in new home sales and an RBA decision to leave interest rates on hold at 4.25%. However, the RBA did cut interest rates throughout the year in response to weaker than predicted economic conditions. By December the interest rate was 3%.
Confidence in the market steadily increased throughout 2012 with The National Consumer Sentiment index showing the highest reading since September 2009, indicating people were getting more confident about the property market.
2012 was a good year for the Queensland property market, with median prices on the rise, new developments on the horizon, and new budget incentives for first timers. Brisbane LGA’s median house price also grew throughout 2012 reaching a high for the time of $505,000.
What will we see in 2018?
The increase in Brisbane LGA’s median house price over the past 5 years shows consistent growth.
Generally speaking, there’s a growing list of reasons to stay optimistic about Brisbane property price growth, including –
Queensland is creating more jobs than any other state or territory,
Nationally, Queensland is seeing the highest inter-state migration,
There have been more major project announcements in Queensland than any other state or territory for the past few quarters,
Exports are doing well,
The resources sector is showing signs of revival, and
Brisbane remains among the country’s most affordable capital cities for residential land.
All of the above shows that migration and investment in the Queensland market is happening at a high level. This bodes well for real estate demand – both commercial and residential.
In addition, we are seeing more and more investors turning their attention from Sydney and Melbourne towards Brisbane because of its cheaper prices and better rental yields.
Our top tip for 2018? Focus on Brisbane’s affordable housing markets.