By Sophie Foster
Homeowners are over $18,000 richer than this time last year and signs are good that will only get better for Brisbane, latest data shows.
Brisbane emerged as the nation’s top performing capital city in the December quarter with property values up 1.3 per cent at a time when traditional powerhouse Sydney went backwards by 2.3 per cent.
The figures, from CoreLogic RP Data, also saw the Queensland capital pull the highest renal yields for units of 5.3 per cent, something many interstate investors have already cottoned on to by shifting their funds here.
CoreLogic RP Data research head Tim Lawless said Brisbane homeowners were $18,560 better off after last year’s rise in property values.
Mr Lawless said detached houses within 10km of the CBD were “probably the pick”.
“Brisbane has been plodding along with very sustainable growth generally 4 per cent year on year. We’re tracking at 4 per cent now. This may be the first sign that Brisbane is starting to show the outperformance that many knew it had,” Mr Lawless said.
McGrath Queensland general manager sales Thomas McGlynn said steady growth meant Brisbane was in a good spot now, avoiding the declines other capitals were seeing.
“That’s a healthy sign and the property market in Brisbane represents extremely good value now. Coupled with rental yield still being very, very strong that’s seeing a vast array of demographics coming into the market,” Mr McGlynn said.
Mr Lawless said any downturn in property; especially in Sydney and Melbourne would be between 5 and 10 per cent.
More broadly, he saw the Gold Coast and Sunshine Coast as “probably the pick of the markets nationally for investments” driven by lifestyle, investors and tourism.
There may also be some relief for badly hit mining towns, with Mr Lawless estimating properties in places like Mackay, Townsville, Moranbah, Dysart and Emerald were “probably fairly close to bottoming out now”.
Industry body REIQ chief executive Antonia Mercorella said Queensland was “on track for more steady-as-she-goes growth”.
“This is good news for property owners and for those looking to get into the market because it means Queensland is not victim to the boom-and-bust cycles that other markets are experiencing at the moment,” she said.
Published by the Courier Mail; Tuesday 5th January 2016