Brisbane and Gold Coast Property Markets Performance

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Brisbane and the Gold Coast property markets are showing signs of price growth over the 3-year period 2017-2020.

According to the recently released QBE Australian Housing Outlook 2017-2020 report, Brisbane house prices should tick up about 2% – 3% annually over the next 2-3 years. This follows solid 5% growth in 2016, and a slower pace of 2% in 2017.

For Gold Coast owners and buyers, look for an average annual growth rate of 2.3% with a large proportion of that growth in 2018 this year.

Brisbane Region

Weakness in the market lies in Brisbane unit prices due to oversupply following a strong period of construction.

Brisbane unit prices have weakened about 1% – 3% yearly over the past two years, and this Housing Outlook report projects 5% annual price falls over the next 2-3 years.

This will have a knock-on effect for unit investors in the area since an oversupply of rentals will put downward price pressure on rents with stronger competition and greater availability.

Gold Coast Region

Employment and infrastructure have boosted the Gold Coast, with projects like the Gold Coast Light Rail and the Star Casino and Pacific Fair expansions creating more jobs.

Unemployment is down to 5.3% from 6.0% in the 2014 December Quarter.

Housing demand is strong, shown by an increase in residential development, as well as a low 1.7% rental vacancy as of June 2017.

Gold Coast median house price climbed to $627,800 in June 2017 following a 2 years of 7% annual average growth.

Unit median prices increased at a slower rate due to more unit completions hitting the market. Projected average price increases are about 1% annually over 2019 and 2020.

Market Outlook (2018 – 2020)

Brisbane:

Brisbane house prices will move forward albeit at low 1% – 2% annually through 2020.

Excess unit supply will keep that market weak and slipping in price.

Brisbane real unit prices are expected to fall about 5% annually on average over the next 2-3 years.

Gold Coast:

Positive effects of the infrastructure and employment increase will carry on.

Expected median house price growth is around 6% cumulative over the next three years 2018 – 2020, with the largest part of that growth just after the Commonwealth Games.

Unit median price growth will be slightly less at a cumulative 5% over the same period.

The elk Perspective:

Investors and property hunters in general should look for suburbs and areas that have solid long-term growth averages.

Those suburbs that have growth in population, infrastructure development and employment, or PIE, will usually increase in house prices greater.

Contact elk realty & capital and learn more about finding and selecting investment properties to generate wealth.
We will help you locate the ideal property that suits your goals and financial situation.

Alyce Kebblewhite –

Partner ~ Real Estate Advisor
& Capital (Property) Manager  0433 708 585