Tight supply and high demand are expected to push Brisbane’s property market ahead of Sydney and Melbourne’s markets over the next year, according to a major real estate agency.
Raine&Horne offices in Brisbane reported a 25 per cent increase in buyer activity compared to the same time last year, according to Queensland general manager Steve Worrad.
In the same period, listings decreased by 60 per cent.
“It's on the basis of tight supply and growing demand that we expect property values in Brisbane to grow by seven per cent, and more in some cases, during 2014,” Mr Worrad said.
He believes that demand is being driven by empty-nesters from interstate, investors and 'fly-in fly-out' (FIFO) workers.
Brisbane’s comparatively low price points are appealing to older couples and retirees.
“Property prices in the southern capitals enjoyed a robust 2013, with the median house price in Sydney, for example, between $665,000 and $712,000 depending on who you listen to, while the median house price in Brisbane is an affordable $445,000,” said Mr Worrad.
“This gives Sydney retirees scope to sell a family home tax free, and make a lifestyle shift to Brisbane and add the difference to their retirement savings.”
The comparatively cheaper prices also appeal to FIFO workers with flexibility as to where they live.
“Whether they're working the mines in Western Australia or on an investment banking desk in Sydney, Brisbane's lifestyle and affordable property prices will attract more fly-in fly-out workers in 2014,” said Mr Worrad.