We have indicated before that Brisbane is a steady market. This is a property market that did not see the significant growth other markets, and we don’t expect it to see the corrections experienced by other markets as well. We love the Brisbane story and think steady market is a good market.
Brisbane property market is showing resilience even in current conditions. Which is one of the reasons why w about this city. We are also positive due to Brisbane vacancy rates tightening and edging towards 2.25% which we believe should provide support to property prices.
Hence if we look at the above chart we can see that Brisbane property market has been tracking in the stable range. All while, the city house prices popped up to robust for a brief period. If you are after further information check the ABS publication here.
In addition to the above, it is important to note that Brisbane is a capital of the state that has been adjusting from a number of headwinds. Remember that Brisbane had to endure a post mining boom adjustment, recover from floods and cyclones. Therefore, if we compare Brisbane performance to Perth we can see significant advantage of Brisbane transition. We believe this good story has provided sufficient support to Brisbane property prices even in current economic and macro prudential environment.
We are also seeing some further indicators of strength of the quiet northern achiever. ABS numbers indicate that the State final demand for QLD are the highest in Australia in December 2018.
We have highlighted before, that Brisbane property market is a steady market and we don’t expect the market to boom this year. We are however excited about Brisbane house prices towards the end of 2019 and into 2020. A large number of multi-billion-dollar projects are expected to hit Brisbane market, which we believe would drive jobs and improve liability of the city. Ceteris paribus, we think this should provide support to Brisbane house prices and potentially create an upward pressure on prices.