Brisbane – an affordable entry point. Performance of the Brisbane Property Market in 2017

Capital Growth, Houses: 2.5%
Capital Growth, Units: -1.6%
                                                                           Gross Rental Yield, Houses: 4.1%                                                                                                                                                
Gross Rental Yield, Units: 5.2%                                                                                                                                                    Affordability: 20.6%                                                                                                                                                                     3 years Rental Growth Houses: 0                                                                                                                                              3 years Rental Growth Apartments: 0.2%                                                                                                                              2017 Rental Growth Houses: 0.3%                                                                                                                                              2017 Rental Growth Apartments: -1.0%                                                                                                                                      Vacancy Rate: 3.8%                                                                                                                       Property Cycle: Commenced November 2012,  expected to end around 2026

In 2017, Brisbane has seen slow and steady growth as this city seems is yet to fully start it's upward cycle. 2017 saw many infrastructure projects being given the go ahead.

2017 saw the apartment market dip with an oversupply of poor quality and small  "investor units". However, Brisbane will likely be the location a savvy property buyer looks towards in the next few years as the city is starting its property cycle many years later than Melbourne and Sydney, has affordable prices, and strong potential. In addition, by 2020 it is currently forecast that there will be virtually no new supply.

BrisbaneForecast

Performance of the Adelaide Property Market in 2017

Capital Growth, Houses: 4.0%
Capital Growth, Units: 9.8%
Gross Rental Yield, Houses: 4.1%
Gross Rental Yield, Apartments: 5.0%

Adelaide is certainly a long-term investment destination, not one to expect quick capital growth, with the main concern being the dwindling population growth. 

And according to QBE, economic conditions are weakening and population growth has slowed.

Performance of the Perth Property Market in 2017

Capital Growth, Houses: -3.5%
Capital Growth, Units: -1.8%
Gross Rental Yield, Houses: 3.8%
Gross Rental Yield, Units: 4.3%
                                                                                Vacancy Rate: 4.6%                                                                                                                                                                        Affordability: 20.2%                                                                                           Property Cycle: Downturn

Perth has seen another year of consistent losses of -3.5% although there are signs that the Perth economy is starting to improve.

Forecasts

Performance of the Gold Coast Property Market in 2017

The Gold Coast market is typically more expensive than the metropolitan Brisbane market given the price
premium on its desirable beach and inland waterway locations. The Gold Coast also offers a hinterland
environment within commuting distance to Brisbane. Local economic conditions have been boosted by a number of infrastructure projects and related works associated with the 2018 Commonwealth Games, as well as the current upturn in residential building.

The second phase of the Gold Coast Light Rail has opened, and the expansion of The Star Gold Coast casino and Pacific Fair have created further employment drivers. The Gold Coast’s unemployment rate decreased
from a high of 6% in December quarter 2014, to 5.3% in March quarter 2017. Vacancy rates
were low at just 1.7% at June 2017. The median house price in the Gold Coast has experienced strong growth of almost 7% in 2017. Growth in the median apartment price has also been sound rising by 4.1% per annum in the past two years. 

Forecasts

Performance of the Canberra Property Market in 2017

With a record low rental vacancy rate of just 1.3%, three years rental growth of 24% for houses and 15% for apartments, and the best affordability ratio of all major cities,(14.8%) it has been a very positive 2017 for Canberra and the ACT.

The Canberra house market has grown steadily over the past three years. The median house price rose
9.6%* per annum over this period.  Underlying demand for dwellings has been largely supported by population growth.
The net interstate outflow has been shrinking over the past four years, with the 2016/17 period resulting in an estimated net inflow of 800 persons. The net overseas migration inflow has also increased.

Escalating new dwelling completions, spurred by low interest rates, first tipped the house market into oversupply back in 2012/13. But an increase in underlying demand over the past two years, however, apartments has seen apartments increase in prices. 
 With low prices, and a good outlook, some investors may consider entering this market

Forecasts

*IMPORTANT NOTE: There are several reputable companies that collect and publish capital growth data on the Australian property market. The challenge is they all use different methodology and it can be hard to determine the TRUE picture. For example, when researching for the 2017 figures, and using the sources we trust and rely on, we found for example with Sydney house prices the range to be from +3.0% to +6.8%, BUT the QBE figure (in the report we referred to at the beginning) has a figure of +12.4% for Sydney in 2017. And it not that QBE is bullish: for Canberra QBE had +4.1 and our other sources ranged from 6.8% to 18.5%!
So we have taken (for all cities) the average capital growth from our all sources, to try to present the most accurate picture, and for the other data where we have been unable to collect sufficient data have used the single source that we believe is the most accurate.
(Sources:DATA:                                                                                                                                    Residex; BIS Oxford Economics; QBE; SQM Research; ABS;                                                                    PROPERTY CYCLES: CIR Research 2018
 
Disclaimer:                                                                                                                                                      Citylife International Realty Limited (CIR) has made its best effort to collect/collate the data/information from various reputable and reliable sources for providing a cluster of housing related indices and data. The views and opinions expressed herein anywhere on this website are those of CIR and do not necessarily reflect its official policy or position of any other agency, organization, employer, or company. Assumptions made in the analysis are not reflective of the position of CIR or any other entity. These views are subject to change, revision, rethinking at any time and CIR do not hold them in perpetuity. The primary purpose of this report/website/data  is to educate and inform and do not constitute either professional or investment advice or any service. CIR assumes no responsibility or liability for any omissions or any errors in the content herein. The information contained is provided on an “AS-IS” basis with no guarantee of completeness, accuracy, usefulness or timeliness and without any warranties of any kind whatsoever, express or implied. CIR assumes NO RESPONSIBILITY OR LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES and assumes no responsibility or liability, for any loss or damage suffered by any person as a result of the use, misuse or reliance of any of the information or content in this website.