Brisbane continued to lure investors seeking high performing investments; however, capital growth has started to slow.
Brisbane staged a solid performance during the three months ending September notching a healthy 4.71% in values according to the latest Residex data. Median house price rose to $411,500 and units $307,000. Rental properties remain in tight supply and fierce demand. Units in the inner and middle ring suburbs achieved a solid 5.10% yield and houses 4.19%.
Despite the healthy gains, the robust growth seen in the past few months appears to have moderated as buyers confront higher property prices and borrowing costs.
However, Tim Lawless, director of research at RP Data said in a report that the comparatively affordable properties in Brisbane and SE Queensland coupled with strong economic growth and migration have fuelled strong and far more uniform growth across the Brisbane market relative to the other cities.
“We see Brisbane as Australia’s best medium term residential performer particularly in term of risks versus return,” he said.
Peter McGrath, REIQ chairman agrees that Queensland’a sound economic fundamentals will help support the property market. “Population growth, low unemployment, a strong economy and increasing infrastructure have all combined to make Queensland the place to live, and this is reflected in the strength of our property market.”
McGrath believes Queensland’s regional centres are also experiencing very strong increases partly due to their affordable price tags.