According to the latest Bis Shrapnel report that lists the residential property prospects for 2014 -2017, QLD and NSW markets are tipped to be the best performers.
• NSW market including Sydney and major regional centres Newcastle and Wollongong, is expected to increase by an average of 15% over the next 3 years.
Sydney’s market has still got a major dwelling deficiency, this in turn with low interest rates will continue to drive demand and push prices up through the next 3 years!
Newcastle and Wollongong should slightly outperform Sydney over this time, with strongest growth tipped to be in 2015/16 as Sydney’s prices and higher interest rates push people out to these centers as Sydney’s affordability becomes an issue!
• QLD Market is tipped to be no. 1 with Brisbane forecast to increase by 17% to june 2017, with Gold Coast and Sunshine Coast not far behind on 13%.
Brisbane’s market is also seeing an underlying dwelling deficiency. Stronger house price growth in Sydney and Melbourne over the 2 years to 2014/15 will widen Brisbane’s affordability of these two capitals, whilst employment prospects in WA will be weaker as the mining boom tapers off. These factors are likely to lead more people choosing to relocate to Queensland with Brisbane leading the way!
Prices on the Gold Coast and Sunshine Coast have generally moved in tandem with Brisbane, benefiting from the same drivers of population as the capital city. However these markets should still see slightly less growth than metro Brisbane due to them having a less diversified economic base, being largely dependent on construction and tourism.
• Other Markets of note include:
Melbourne – expected median house price to rise by 8% over 2014 to 2017
Townsville and Cairns – is expected to be similar with growth of 11% expected to 2017