BRISBANE is well placed to take over as the nation’s best performing capital city housing market in the next five years, a leading property analyst has predicted.
But while the city looks set to benefit from better housing market conditions, don’t expect house prices to reach the giddy heights they have in Sydney and Melbourne in the short term.
CoreLogic’s head of research and analytics, Tim Lawless, believes Brisbane’s property market could be a quiet achiever.
Home values across the city have risen at an annual rate of 1.2 per cent in the past decade — half the pace of inflation and dramatically lower than Sydney or Melbourne where annual gains have averaged 6.3 per cent and 5.9 per cent, respectively, over the same period.
Mr Lawless believes the relative gap in pricing between Australia’s largest cities is likely to be one of the factors that attracts housing demand to Brisbane, as well as its affordability.
“At the end of November 2017, Sydney house values were 102 per cent higher than Brisbane’s and Melbourne values were 57 per cent higher,” he wrote recently.
“Based on median household incomes, Sydney households are earning only 12.9 per cent more than households in Brisbane and incomes across Melbourne are actually 0.7 per cent lower than Brisbane’s.
“This is also visible from more formal affordability measures such as the dwelling price to income ratio and the proportion of household income required to service a mortgage.”