According to some economists, the Brisbane real estate market is gaining a lot of popularity among potential investors and property buyers. The property markets in Sydney and Melbourne are doing pretty good, but now the attention is completely on Queensland’s sunny capital city. With a stable change in the residential market across the country, Sydney and Melbourne have seemingly started to control the situation. However, the capital city of Queensland is still facing diminished falls with the prices of properties- 0.6 % in June.
Despite decreasing values in the residential real estate markets, experts are expecting a strong comeback from Brisbane in the next few years. Below are some key factors that are expected to influence the Brisbane Property Market in 2020. Have a look at these factors before investing money on the residential or commercial market in Brisbane this year.
Strong Housing Affordability
There is no denying that the property market in Brisbane has been slow and steady. But 2020 will bring some new changes. It is predicted to have a strong start in 2020 – all thanks to major development projects such as Howard Smith Wharves and Queens Wharf and affordable housing options as compared to Sydney and Melbourne.
Brisbane’s housing market is comparatively affordable than Melbourne and Sydney. That’s one of the reasons why people are buying properties in the hotspots of Brisbane and moving here with the help of reliable furniture removalists Brisbane.
A Massive Capital Growth Due to School Catchments
Believe it or not! Residential properties that are in good school catchments in and around Brisbane have given much better capital growth than those in other locations. According to some reports by Department of Housing, the demand for homes in school catchment areas have increased by more than 30 % in the last 12 months and is predicted to grow further this year.
So, if you are planning to buy a property in Brisbane for high investment returns, then look for school catchment areas.
Strict Lending Criteria
Though the Royal Commission has introduced more restrictions on the banks and their lending practices, they have not stopped them from lending money. But after the Royal Commission finished in 2019, many banks and lending institutes have slightly relaxed housing loan lending rules. This has been done to make it a bit easier to access mortgages in 2020.
Increase in Median Housing Price
Many economists have predicted that the property market in Brisbane will reach the new heights of success. It is expected that there will be an increase in house prices by 20 % at the end of 2022. There will be an increase in the median unit price from $552,000 to 655,000 in 2020. This will be a significant change and the highest predicted for all cities in Australia.
The report also predicts that price growth will be stable within a year, before a price jump from 2021 to 2022.
Rental Yields in Brisbane
There is a steady boost in the rental yields in Queensland, which is good news for potential property investors. You can’t deny the fact that vacancy rates in Brisbane have been tight, hovering below the level of 2.5 % vacancies- this represents a balanced rental market.
But, vacancies in Brisbane have increased over the past few years in response to the oversupply of apartments. According to some reports, the gross rental yield for houses in Brisbane in currently around 4.2% and for units was more than 5 %.
New-age Infrastructure Facilities
One of the critical factors that will affect the Brisbane Property Market in 2020 is economic growth. It is projected to increase from 2.5 per cent last year to 3 per cent- thanks to some of the major introduction of infrastructure facilities. There are tonnes of multi-million projects happening in and around Brisbane that will create new job opportunities.
This will encourage people to move to this beautiful city, which, in turn, increase the demand for affordable housing.
Moving to Brisbane can change your entire life. It will help you lead a quality lifestyle while your kids will get better education facilities. If you are planning to invest in Brisbane’s property market this year, then consider all the influencing factors mentioned above in this article and make a well-informed decision.