Brisbane Tipped as the Winner for Capital Growth
Last week Brisbane was being touted as less than excellent economically based on the Wednesday release of the Commonwealth Bank Commsec survey.
Other media is far more positive with Brisbane being tipped by the National Australia Bank as the top contender for most likely to be the winning state in terms of property price growth and capital growth across 2016.
Last week we looked at the Commonwealth Banks national economic survey, this week we’ll look at the NAB Quarterly Australian Residential Property Survey Q4 2015 and what it predicts for Queensland in 2016.
The best news for us in Brisbane is that the report predicts Queensland as the best state for capital growth (1.9% & 2.7%).
Queensland tops the survey with a contrasting growth in foreign investment in comparison to the weakening of foreign investment activity on other states. Queensland’s segment of foreign buyers grew 3.2% between the third and fourth quarter, rising from 17.7% to 20.9% accounting for total new property sales.
With regards to the many multiple-storey units in Brisbane’s West End and inner-city, the predictions coming from several professionals in our office confirm the view that prices are more volatile in the city as a general rule. The future influx of new bulk units we see being built very close to the city, will likely be a significant variable in price behaviour. The NAB report seems to validate this sentiment with its view that unit prices in large apartment blocks will have a downward pressure Nationwide. It expects national unit prices to fall 1.2% during 2016 with all capital cities likely to experience flat or falling prices in all capital cities.
It is noted however that despite the language used by NAB to describe National averages the report does not specifically mention the Australian Capital Territory and combines the results of South Australia and the Northern Territory.
It is with this knowledge over bulk apartment blocks in the CBD and West End that most of the agents in our office are confident in the stability of property prices 5 – 10 Kilometres of the CBD.
