Even with such tough finance conditions, Brisbane continues to hold up pretty well.
Almost everything is up just a bit – buyer demand, rental demand and pricing. The one area where Brisbane does seem to be seeing a big pick up is offshore buyer demand, perhaps driven by the city’s education sector as well as its relative affordability. And, all the bad news about apartment oversupply seems to be attracting the attention of investors – both offshore and local.
Better economic growth conditions appear to be a positive in this market and premium Brisbane suburbs are the beneficiaries. Right now, the most in demand suburb is inner-north’s Grange while the outer south-east suburb of Chandler comes in at number two.
Brisbane is doing well and much of regional Queensland is joining it, although many areas are coming off low bases. Even Gold Coast, which had a quick post Commonwealth Games demand hangover, seems to be recovering with demand levels flat over the quarter. The Local Government Areas of Douglas and Mackay have now seen double digit price growth, something quite unusual in these market conditions.
Queensland economic growth is pulling the market up and the Royal Commission wrapping up will be a positive for finance and for the state. Price growth is likely to continue over the next 12 months.