Investors are turning their sights towards Brisbane, giving first-time buyers in Sydney and Melbourne some breathing space.
According to CEO of Raine&Horne Angus Raine, first home buyer numbers are expected to recover after investors dominated housing in 2013.
“First-time buyers are expected to return to the Sydney and Melbourne real estate markets in greater numbers this year, as more investors shift their attention to Queensland to expand their property portfolios," he said.
“That’s the good news. However, there are still plenty of hoops for first-time buyers to negotiate – including saving a deposit – to make a new home a reality in 2014."
Speaking with Real Estate Business, senior economist at Australian Property Monitors Dr Andrew Wilson said the forecast was almost spot on.
“I think the Brisbane housing market looks to be something that will induce more investor activity. Yields are still the highest of any of the capital cities, sitting above five per cent. It’s a tight rental market with low vacancy rates and rents keep rising, so yields are being maintained,” he said.
With the relentless investor market looking north, the market should reopen in the southern capitals.
“I agree that first home buyers will move back into the Sydney market, we’re already starting to see signs of that – the latest ABS data shows that November had the highest monthly number of first timers all year," Dr Wilson said.
“While this is coming from a low base the trend is certainly up in NSW Sydney.”
However, Dr Wilson wasn’t as enthused about Melbourne’s future.
“We had a lift in first-time buyer numbers last year because of the changes in the grant structure, which led to a downturn when demand was brought forward," he said.
“I would expect to see growth gradually increase after a period of decline – probably by the end of the year, but not in the short term.”