“Brisbane’s Turn to Boom” – Analyst

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With the end of the fiscal year upon us, considering the large amount of bad press relating to the property market in recent times there were two encouraging news releases from reliable sources this past week.

Angie Zigomanis, long time experienced analyst at respected BIS Oxford Economics predicts house prices in Brisbane to soar over the next 3 years. In doing so it is expected to lead the nation’s capital cities with median house prices in Brisbane expected to increase by some 13% {see graphic below sourced from BIS Economics}

Housing Downturn to be Shallow and short-lived

Although there are different scenarios from one market segment to another, Core-Logic Moody Analytics latest Home Value Index Forecasts that Australia’s housing slump could prove to be shallow & short-lived. Indications are that some price corrections will not be as severe as some predictions and recovery will come sooner than at first thought.

They put this down to solid employment and GDP growth, with the former already at 3.1% and the latter expected to hit that number this year – both significantly above earlier forecasts.

“Business investment is on an uptrend with non-mining investment the driver” the report says. They anticipate this to translate into improved property prices in some sectors and a deceleration in value declines in the worst hit sectors.

“House values across Brisbane are forecast to see a mild 1.4 per cent gain in 2018, with strength in west Brisbane and inner Brisbane offsetting declines in south Brisbane,” according to CoreLogic and Moody’s.

Closer to home here in Brisbane, after experiencing a record first half, this year had been lack-lustre until May when we experienced one of our best months ever which will see us match 2017’s overall results. Considering the world economy appears to be on the mend, led by the US and monetary policy here looks to remain highly accommodative with official interest rates remaining on hold for the foreseeable future, we are cautiously optimistic about Brisbane’s property development prospects.