Brisbane’s house prices could stabilise before the year ends, but the apartment market poses a risk, according to an expert.
Domain economist Trent Wiltshire said the city’s house prices could recover by December. However, the unstable unit market threatens the recovery, as plummeting construction and steady absorption of supply continue the price slide.
Wiltshire said the city could experience 3% to 5% growth in 2020.
The Coalition’s win, interest rate cuts, and the Australian Prudential Regulatory Authority’s (APRA) proposed changes to bank lending rules had boosted sentiments.
“(These) will stop prices falling later this year. There hasn’t been a big correction in Brisbane, but units are down 10% from their peak,” Wiltshire said.
“The oversaturated market has led to a plummeting rate of construction, which now threatens Queensland’s already-high unemployment rate of 6%.”
The decline in the construction sector could be a sign of further price fall.
“But there’s also upside risk to prices as well, though. Investor sentiment could bounce back by more than expected. Interest rate cuts could cause falling unemployment,” Wiltshire said.
