Things are looking up for Brisbane investors as the city's housing values are projected to grow slightly this year.
This positive projection was a result of Brisbane's higher-than-inflation home values and household income growth over the past five years.
Dwelling values have risen at the annual rate of 2.7% over the past five years, with the pace of capital gains slowing in line with credit tightening over the previous years.
CoreLogic's outlook for 2019 is similar to the trend in 2018, wherein Brisbane values ended up only half a percent higher than in 2017.
The report also found that the unit market has significantly contributed to the weakening of Brisbane growth rates, with unit values still around 5% lower than they were 10 years ago.
The unit sector is expected to bounce back gradually during 2019, though, thanks to rising migration rates resulting in higher demand and less new supply entering the market.
The coastal markets of South East Queensland posted a stronger performance than Brisbane. However, the growth rates slowed across the Gold Coast and Sunshine Coast over 2017.
Similar to Brisbane, these markets were forecasted to remain in mild positive growth territory over the next year due to rising interstate migration rates and ongoing demand for lifestyle properties located close to major airports, amenities and employment opportunities.
Results from Regional Queensland markets, meanwhile, were mixed. The northern coastal and lifestyle markets have been slowing, with markets such as Cairns continuing to decline further. This condition is likely to improve in 2019 as demand for lifestyle properties ripples along the coastline.
Mining-related areas were recovering through 2018 due to stronger commodity prices and improving levels of investment, and this trend is likely to continue provided that the Australian dollar remains low and commodity prices are kept high.
