BIS Shrapnel’s latest assessment of Australia’s housing market was doom and gloom for all capital cities from 2016-2019, with Brisbane and Hobart tied in first places for the best and safest places to buy property for growth.
Brisbane’s estimated median house price is forecast to increase from $520,000 to $555,000 from 2016-2019 making it the third most expensive capital city in Australia, after Sydney and Melbourne respectively.
To keep it in perspective though, whilst BIS is predicting price falls in every capital city besides Brisbane and Hobart, it’s only talking about a modest 7% growth in our fair city and Hobart. But that’s far better than the negative growth predicted for the other cities.
Other Capital Cities Don’t Fare As Well
BIS are talking about prices falling 9% in Sydney, 8% in Melbourne, 9.5% in Adelaide, 9% in Darwin and 8% in Perth. Those of you good at maths will understand that when comparing percentage drops against growth that the drops are bigger than the growth (because the % are from higher amounts).
What is a bit disconcerting though is Shane Oliver’s comments from AMP Capital who believes these price drops could be considerably bigger…
…which all furthers the case for even more increased demand in the Brisbane and Hobart property markets.