QUEENSLAND’S housing market is tipped to lead the country for capital growth in the next two years while prices in NSW and Victoria continue to slide, according to new research by NAB.
The latest National Australia Bank (NAB) quarterly survey of 300 respondents reveals the industry expects house prices in Queensland to increase by 0.7 per cent in the next year and to have risen by 1.3 per cent in two years.
Areas tipped to enjoy above average growth over the next year include Brisbane, Cairns, the Gold Coast and the Sunshine Coast.
The outlook for rents in the state is also positive and likely placing upward pressure on yields.
Property professionals predict rental growth in Queensland of 1.3 per cent over the next 12 months and to have grown by 1.9 per cent in two years.
Despite tougher restrictions on housing investment, the number of local investors in new property markets were especially active in the sunshine state, with more than 32 per cent of buyers in this market in the second quarter of 2018.
Foreign buyers’ appetite for property fell in all states, except Queensland, where the share of sales to that market jumped to a four-year high of 22.8 per cent in the past quarter.
According to Oxford Economics, pockets of Queensland are turning around as the state becomes the recipient of migrants from overpriced NSW.
In Queensland, foreign buyers accounted for 5.4 per cent of all residential property sales in the three months to June 30.
“We’re seeing strong first-time buyer demand in Queensland – that’s finally starting to come through in larger numbers now, and Queensland seems to be the main beneficiary of those [price] increases in NSW,” says Angie Zigomanis, senior manager of residential property at BIS Oxford Economics.
The housing markets of the Sunshine Coast and Gold Coast continue to enjoy the most attention from prospective buyers. The international during the recent Commonwealth Games has put the region in a strong economic position, and supply and demand is more balanced in these areas than in Brisbane.
“Given the lifestyle market in the Gold Coast and Sunshine Coast, [buyers] could be saving themselves $100,000–$200,000 on purchase price while still having a lifestyle on the weekends with their young families or outdoor activities,” says Damien Lee, head of acquisitions at Caifu Property.
Source: The Courier Mail – Elizabeth Tilley | www.propertyvalue.com.au