Despite optimism among some economists, SQM Research is predicting the Brisbane property market will remain flat through 2013.
According to SQM Research’s Brisbane Housing Boom and Bust report, the city will not experience any drastic price rises for the rest of the year.
In last year’s report, Louis Christopher, SQM Research’s managing director, predicted house prices in Brisbane would rise between three to seven per cent for 2013. This has now been revised down to two to five per cent capital growth for this year for houses, and three to six per cent for units.
“Brisbane housing prices have now stopped falling,” Mr Christopher said. “However, we see no emerging property boom because there is simply too much real estate on offer for buyers right now and local economic conditions do not provide any stimulus for such a rapid rally.
“Nevertheless, a modest to moderate rise in dwelling prices makes for a more sustainable and enduring recovery which is what is going to be the most likely outcome for the local market.”
In Brisbane’s regions, SQM believes that the inner city is likely to outperform over the next two years with dwelling price increases of the order of four to eight per cent a year. This is followed by East Brisbane which may experience similar growth.
Brisbane’s west will likely record a negligible increase in real estate, due to a current abundance of supply.