The economic climate in Queensland is hindering Brisbane’s property market recovery, according to a 2014 property market forecast.
In his property predictions report for 2014, CEO of WBP Property Group Greville Pabst said the state of Queensland’s economy may limit Brisbane’s median price growth to five per cent in the year ahead.
The limitations could be attributed to the state’s high unemployment rate, which Mr Pabst said is “the highest of the eastern states and capital cities”.
Despite the economy’s difficulties, Mr Pabst said Brisbane investors have a promising year ahead of them.
“On the up side, strong yields of between 4.7 per cent and 5.6 per cent for Brisbane units and houses respectively are better than those achieved in Sydney and Melbourne, which will continue to attract investors,” he said.
Other regions in the state could also be set to thrive in the years ahead, according to Mr Pabst.
“The 2018 Commonwealth Games, to be hosted on the Gold Coast, is expected to boost the local economy to the tune of $2 billion. The state government has made a commitment of $100 million to build infrastructure, which will in turn create a number of jobs and have a flow-on effect," he said.
“These two factors have helped improve confidence within the property buyer segment and this will see positive flow-on in the coming 12 months.”
Mr Pabst also predicted that nationally, houses under $2 million within 10 kilometres of a capital city CBD would be the most active segment of the market.