Brisbane property prices set to continue on growth path

The vacancy rates in Brisbane's CBD remain unchanged from last month – sitting idle at 3.9%. This figure has now remained below 4% for the majority of 2014. Since a vacancy rate of 3% is considered a 'balanced market', this represents a slight excess in supply.

Weekly rents in Brisbane’s have fallen over the past month, though remain above $ 600 with gross yield falling to around 4.25% – this is perhaps due to seasonal factors.

Good news for investors, however, comes from BIS Shrapnel, which is predicting Brisbane will prove a property price hotspot over the next three years, with rises averaging more than 17% over the period.

Data Source: SQM Research

Vacancy rates on the Gold Coast continue to fall as people move into the area, attracted by generally high employment levels and lifestyle options. Gold Coast vacancy rates have now fallen to only 1.6% which represents an excess in demand for properties.

With average rents remaining static at a shade over $ 500, yields have reduced a little to around 4.4% as house prices have risen by an average of 7.7% over the last 12 months.

The RBA continues with its low interest rate policy, and the near year-long marketing effort by Brisbane council is starting to reap rewards. Foreign investment in business and real estate is gathering pace off the back on the recent G20 conference.

On the Gold Coast real estate experts are excited about prospects for capital growth with asking prices for 3-bed homes are creeping toward $ 600,000 and unit prices are edging nearer the $ 400,000 mark.

Brisbane: Property boom on its way?

Investors in Brisbane property have been left behind this year by Sydney’s 13.1% growth in real estate prices. However, several real estate experts, such as Nicola McDougall at Australian Property Investor, believe that Brisbane’s slower growth is more sustainable in the longer term.

With average growth of around 5.6% over the past 12 months, a three year target for price increases centres around 17%. In other words, many observers expect Brisbane property prices to continue on the moderate growth path they have been riding lately.

Data Source: Sydney Morning Herald

Brisbane is on the radar of commentators and investors in Sydney and Melbourne (as well as foreign investors), with interest rates and global concerns increasing demand after the problems of the GFC and Brisbane floods.

There is evidence of increased demand within inner-Brisbane as some confidence enters the market, with properties selling above asking price in areas such as New Farm and West End. Water-view properties seem well supported at present, though apartment price growth has been subdued. New apartment builds in Brisbane are seeing higher levels of demand, but there are question marks over the number of new build projects as the inner Brisbane skyline changes shape.

Rental Express in front again

Meanwhile, we are once again delighted to report that our Rental Express offices are renting properties more quickly and at higher prices than the industry average (according to data published by RentFind.com.au, November 2014).

Our Gold Coast office has been a recent stand-out performer, reducing their average vacancy to 1.5 days – that's 88.54% better than the industry average of 13.1 days!

Click HERE to view our vacancy records for all offices.

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