Brisbane house prices leaving Sydney for dead
BRISBANE real estate prices are expected to stay growing even as Sydney falls backwards.
A BIS Oxford Economics report on the Australian real estate market released today showed that Queensland might weather the storm of the current market slowdown.
The Residential Property Prospects 2018-2021 report predicts that the Brisbane market will grow modestly over the next two years.
Co-author of the report Angie Zigomanis said the modest predicted growth in Brisbane was much better than what would happen in the Sydney.
"More downside is forecast for Sydney as it has had a much greater dependence on investors through the most recent upturn," Mr Zigomanis said.
While Brisbane was only expected to grow at about the level of inflation for the next two years, he said strong internal migration was a positive for the market that helped soften the slowdown.
"A lot of people would like to move to Brisbane because it's more affordable," he said.
Although there was an oversupply in Brisbane, particularly in the unit market, he predicted that internal migration and population growth would eventually "soak up" the oversupply.
"And that is what will drive the next round of price growth in Brisbane, picking up at 6 or 7 per cent (growth) in 2020 and 2021," he said.
This was a much better prediction than Sydney, where he predicted that median house prices would be lower in 2021 than its June 2017 peak.
According to the report the current problems in the real estate market were driven by lending restrictions and strong increases in housing supply.