One less popular capital city’s property market is expected to outperform both Sydney and Melbourne this year due to its apartment market.
Despite Brisbane’s property market saw inner city units dragging down growth last year to about a decline of 5 per cent compared to last year, Universal Buyers Agents’ Darren Piper said a surge in interstate migration and steadying supply is likely to reverse the trend.
He said he has noticed some investors buying currently discounted properties now in anticipation of that reversed trend.
“We’ve already seen several investors buying up in Brisbane while prices are low, especially given that prices interstate are still out of reach for many,” Mr Piper said.
“Interest rates are still very low and this year we will see a real steadying in the market following the 2017 unit peak.”
Apartment supply is expected to be at 5,700 completions as opposed to last year’s 10,700 completions, BIS Oxford Economics data shows, while ABS data reveals over 11,000 people migrated to Brisbane, which both sets of data expected to contribute towards a market recovery.
Because of this, Mr Piper said now is the time to make purchases in Brisbane, with a “significant shift in growth” expected by the end of March.
“As the market steadies itself, more interest increases from investors and demand increases from new occupants; it is creating the perfect burst of energy for the market,” he said.
“Brisbane is still one of the most affordable cities in Australia. The current price-to-income ratio to buy in Brisbane is 5.3 times at a median house price of $524,000.