After years of sluggish growth, Brisbane’s median house price is tipped to jump by 17% in the next three years.
According to economic forecaster BIS Sharpnel’s latest Residential Property Prospects report Brisbane’s median house price at the moment is about $440,000, a low two per cent increase on last year. The predicted increase would bring the median house price to about $514,800.
While the increase in the past year was low, and remains 11 per cent below the peak of the market in June 2010, it is the first annual increase in medians since 2009/2010.
BIS Shrapnel senior manager Angie Zigomanis said Brisbane’s median house price had been affected in recent years by weak state economic conditions including weak migration and population growth.
However Mr Zigomanis reckons conditions are slowly starting to turn around and says house prices are still affordable and interest rates were low. He said all the pieces were now falling into place for the beginning of an upturn, although confidence was still weak.
“However, similar to the Perth market, once it appears that the market has definitely bottomed, turnover will begin to increase as purchasers seek to enter the market ahead of any further price rises in increasing numbers,” he said.
Mr Zigomanis predicts a return to price growth in this new financial year, which will accelerate into 2014 and 2015.
“By the end of 2015-16 (financial year), rising interest rates will begin to impact on prices, but only after a forecast total rise of 17 per cent in the median house price over the three years to 2016, representing an average rise of 5.2 per cent per annum.”
Meanwhile, the latest RP Data-Rismark June Hedonic Home Value Index results out Monday reveal that Brisbane’s median dwelling values (that includes houses and units) has risen by just 0.1 per cent in the past month.
According to RP Data research director Tim Lawless, while there is some volatility in the month to month data, the trend is much more indicative of an ongoing recover in values.
The figures show that the values were up on 0.6 per cent year on year.
Mr Lawless said lower mortgage rates were starting to have a positive impact on the housing market, however current conditions were still far from what the market had been like in 2009.
Written by Michelle Hele, Property Editor at the Courier Mail http://www.heraldsun.com.au/realestate/news/brisbane8217s-median-house-price-tipped-to-leap-17pc-by-2015-to-about-515k/story-fni0cj8p-1226672415235 July 01 2013