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The media are reporting great news for Brisbane in 2019

Anthony Hancock
Anthony Hancock
26/04/19

Brisbane is in high demand in property searches across realestate.com.au, with overseas interest from Asia and New Zealand but also the largest increase from the UK that has ever been seen in Australia. Specifically, Windsor and Indooroopilly are seeing strong demand, included in the top 5 most searched suburbs on realestate.com.au.

The media are reporting great news for Brisbane in 2019. Property performance is forecast to see a correction in values, particularly in East Brisbane which is offsetting falls in other inner-city locations such as South Brisbane. With reduced numbers of apartment stock now in the market, we can expect to now see a recovery in apartment values from this year onwards.

Tipped to outperform the rest of the Nation over the next two years according to Moody’s Analytics, apartments are predicted to recover by 0.9% this year, with a further increase of 5.8% in 2020. Moody’s Analytics economist, Katrina Ell, recently said that “The worst is likely over for Brisbane’s apartment market.”

Brisbane is in high demand in property searches across realestate.com.au, with overseas interest from Asia and New Zealand but also the largest increase from the UK that has ever been seen in Australia. Specifically, Windsor and Indooroopilly are seeing strong demand, included in the top 5 most searched suburbs on realestate.com.au.

Brisbane’s housing market has been resilient during the national housing downturn. Realestate.com.au chief economist Nerida Conisbee said, “Brisbane was meant to be ground zero for apartment oversupply, however concerns about this were overstated and, in the end, Brisbane has weathered the downturn well.” Ms Conisbee said, “fundamentals of property demand continue to hold up the Brisbane market — jobs are being created and this is supporting population growth.”

Sayre by Mosaic, set in the heart of popular Brisbane suburb Windsor, has received strong pre-sales

While property values and rental yields in Brisbane are increasing, Sydney remains in a steady trend of annual decline. Speaking in relation to Sydney’s yields, Domain’s senior research analyst Dr Nicola Powell said, “Gross yields hit a two-and-a-half-year high, suggesting property values are falling faster than rents.”

“With yields remaining weak, and capital gains in the short-term unlikely, Sydney isn’t currently a hugely attractive market for investors,” she said.

Ms Powell further stated that thanks to rents increasing, Brisbane tells a very different story to the rest of the nation’s larger capital cities, with its rental market “slowly changing to favour landlords”.

“Tenants will find the rental market is now entering new territory. Not only will they start to find competition to secure a lease has increased, the choice of available rental stock will be narrowing,” said Ms Powell.

The latest quarterly rent review for the March quarter 2019 from property researcher CoreLogic, found Brisbane’s median rent rose 0.8% for that period and were up 1.4% in the past 12 months. Brisbane’s median rent has now reached $436 a week, which is in parity with the national average.

With apartment values tipped to outperform other capitals in the next 2 years, rents and yields on the rise in favour of landlords, and combined with current affordability, Brisbane remains a very strong proposition for property investment for local and interstate investors.

 

DATA SOURCES: Moody’s Analytics, CoreLogic, Domain, Realestate.com.au

MEDIA SOURCES:

The Urban Developer, Rental conditions favour tenants in these capitals, 12 April 2019
The Urban Developer, Expect Sharp Correction, Further Falls in 2019: Moody’s, 9 April 2019
The Courier Mail/Realestate.com.au, Rents rising, yields up as oversupply eases, 5 April 2019
The Courier Mail/Realestate.com.au, Revealed: Brisbane’s most sought-after suburbs, 13 April 2019
The Courier Mail/Realestate.com.au, Brisbane apartment market to outperform nation: Moody’s, 9 April 2019
The Courier Mail/Realestate.com.au, Brisbane rents on the rise as housing market holds strong, 9 April 2019
The Australian Business Review, Rents rise against housing downtrend, 9 April 2019