A confluence of positive factors is helping Australian city markets strengthen, with savvy buyers beginning to seriously consider where to invest next, according to Your Property Your Wealth.
The buyer’s agents business identified that some property markets across the nation are poised to reignite in coming years, stating that some are more likely to outshine the rest.
Your Property Your Wealth director and buyer’s agent Daniel Walsh said most markets ground to a halt last year, with many locations posting poor results, but the outlook seems better now.
“In the space of a few months, we’ve had interest rate cuts, a return to more reasonable lending standards, as well as the coming and going of a federal election — all of which are positives for the property sector,” Mr Walsh said.
“What that means is that most major locations are now together at the blocks ready for the starter’s gun.”
Over the next decade, he said, prices in Australia’s two biggest capital cities of Sydney and Melbourne will continue to grow, but not at the same rate.
“That’s because one capital city is set to outshine the others. I believe that Brisbane will be the property winner over the next decade and not because it seems to have ‘missed out’ on growth in the most recent market cycle,” he said.
“The Sunshine State capital has a huge number of economic attributes that will underpin its market, including strong interstate migration, affordability, an ambitious infrastructure program as well as the second runway at its international airport, which is expected to boost the state economy by billions of dollars alone.
“Property investment analyst John Lindeman has forecast that Brisbane property prices could increase by as much as 120 per cent between now and 2028.”
Mr Walsh said he has noticed houses in the city priced between $300,000 and $500,000 bring in solid yields.
“Clients have seen their Brisbane holdings increase in value by as much as 21 per cent over the past three years, while most other major locations were flatlining or falling in price,” he said.
“There is still so much more room for the Brisbane market to grow, so that is why we will keep strategically buying there because we believe that over the long term, it will be leader of the pack.”
Mr Walsh also said a city’s past performance should never be relied on for future results, because markets are more complex than just one factor driving growth.
“Consider Sydney between 2000 and 2009 — it was the poorest performing capital city — which at the time was believed to be because it was our nation’s most expensive,” he said.
“As we know, its performance from 2010 to 2018 debunked that reasoning, as its property prices soared by more than 80 per cent, and its median house price reached levels that were out of reach for a lot of buyers.
“Of course, it’s no coincidence that during that time, Sydney’s economy was the best in the land, followed by Melbourne, where property prices also increased strongly.”