Brisbane home prices to likely increase by 20% over the next three years, according to a new forecast—the largest rise of any capital city.
BIS Oxford Economics’ Residential Property Prospects 2019 to 2022 report predicted housing values in Brisbane to grow by 20% in the next three years, with unit prices rising by 14%.
Buyers will be able to take advantage of lower interest rates, boosting their capacity to pay combined with employment growth, according to BIS Oxford Economics Associate Director for Residential Property Angie Zigomanis.
Sentiment in the striving market also improved after the May election, back-to-back rate cuts, and the Australian Prudential Regulation Authority’s (APRA) decision, allowing homebuyers to borrow more money.
However, the report warned that any substantial recovery is some time away, amidst a high level of new homes being built and continued scrutiny from banks before granting loans.
“A lot of the downturn in prices has been more conservative lending policies by the banks,” Zigomanis told Domain.
The report also predicted Sydney and Melbourne house values to increase by 6% and 7%, respectively, with units in the capital cities growing by 1% and 4%.
Property prices in Perth are unlikely to pick up in the next three years, according to the forecast. However, prices could increase towards the end of the three-year outlook, with a 7% increase in housing values and an 8% rise in units by June 2020, the report said.
