QUEENSLAND’S property market is tipped to continue its solid performance through 2018 with predictions prices could grow faster than they did in 2017.
While southern capitals were expected to experience price drops, after a year of substantial growth, other capital cities, including Brisbane were more likely to experience positive conditions.
CoreLogic head of research Tim Lawless said an improved job market and an increase in migration meant price growth in Brisbane could potentially be higher in 2018. And he said regional Queensland markets, particularly those around mining regions, were also likely to improve as values bottomed out after a long and substantial decline. In many of those areas listings had started to drop and sales numbers had started to rise, which would lead to some gradual price gains. Ray White Queensland CEO Tony Warland said the start of 2018 would be strong for the property market. “November is always our best month for sales and the best quarter is always the three months to March, so it’s the best time to sell,’’ he said.
“If people didn’t sell the house by Christmas then they are on a mission to get their house sold and the kids into school as soon as possible in the new year.’’ He said the Brisbane market would fire back up by mid-January, although the Gold Coast and Sunshine Coast markets would be strong the whole time through Christmas and New Year.
Mr Warland described the Queensland market as much more “stable and confident than southern markets”.
“We see at least three to five people bidding at auctions in Brisbane and you can get a genuine picture of what the market confidence is, whereas in Sydney they get upset if they don’t have 15 to 20 people registered to bid, it’s so erratic.’’
Suburbs to watch in 2018 were Carina and West End, he said.
“After five years of solid price growth, Carina’s median price steadied in 2017, to be up just 0.5 per cent to $660,000. There were only 96 houses sold in Carina in 2017, compared to 136 the year before. We believe there to be good buying opportunities in Carina in 2018, as it’s sought-after for its good road infrastructure and quality schools. There’s lots of big blocks and development potential.’’
“West End will always be a good property decision as it sits in the Brisbane State High School catchment area but houses are in limited supply in West End. So buyers have to move quick as they often miss out,’’ he said.
Place CEO Damian Hackett said some pockets of the inner city had experienced double digit capital growth of up to nearly 15 per cent, in 2017 and he tipped steady growth to continue.
“Suburbs that are on the cusp of areas that boomed this year will increase in popularity and price, including Cannon Hill, Mount Gravatt East, Lutwyche, Kenmore and surrounds,” he said.
“These areas still offer affordability, easy access to the CBD, local amenities and great school catchments.’’
Mr Hackett predicted more favourable buying conditions for owner occupiers in 2018, particularly those looking to buy for less than $800,000 as a result of decreased competition from investors.
“Brisbane’s $3 million plus market has remained strong; stock has been limited this year, which has driven competition, along with interest from interstate and expats.
“And we expect to see that trend continue into the new year, with Brisbane presenting itself as an attractive place to live where you can still get more bang for your buck in luxury market.’’
Martin Hood, of RE/MAX Riverside, said 2018 would bring more stock and greater interstate migration which would lift demand.
A recent open for a Corinda property priced at $1 million attracted five serious buyers – all from interstate.
At the affordable end of the market, he said Forest Lake was going strong at the moment.
“I am actually selling a house at Forest Lake at the moment and the inquiry knocks me over,’’ he said.
“I think that people are trying to not overcommit, trying to keep where it is affordable and not get caught out.’’
LJ Hooker’s predictions report tips one of the big trends for property in 2018 will be that bitcoin transactions become more common.
“The rise in the popularity of crypto currencies, around the world, has inevitably reached Australian property markets. LJ Hooker has seen a number of listings this year where sellers have asked for, or accepted, Bitcoin as payment, or part payment, for their property,’’ it said.
It also said listing numbers would remain elevated through the start of the year as owners looked to cash in on recent strong price growth. “The rise in listings means more choice for all buyers in the market, however, first home buyers should be practically active as investor demand remains soft. One downside to having less investors in the market is that rents have the potential to rise, as rental availability falls and population growth continues.’’