Origin states leading the charge in property markets
NEW South Wales and Queensland property markets are leading the country, with average home prices in Brisbane, Sydney and major regional centres to climb by up to 17% over the next three years.
New figures from BIS Shrapnel released today show Brisbane is racing ahead, with median house prices to increase from $475,000 in June 2014 to $555,000 by June 2017.
The Sunshine and Gold coasts north and south of the city can expect to move almost "in tandem" with Brisbane, with prices to go up 13% in 36 months.
Brisbane's 17% jump easily outperforms Sydney prices which will move from $795,000 to $875,000, increasing by 10%, in the same period.
Its regional centres of Newcastle and Wollongong are blessed to still be avoiding the already-high prices of Sydney, so house prices are likely to go up between 14% and 15%.
BIS Shrapnel senior manager Angie Zigomanis said NSW and Queensland markets were strongest nationally.
He said both states had low home vacancy rates because there were not enough houses to keep up with demand.
"The strongest price growth over the next three years is forecast for the Brisbane market, where affordability has improved significantly after weak price performance in recent years.
"The momentum in the Sydney market is also expected to continue for now as the market is estimated to still be in deficiency.
"By June 2017, only the Brisbane and Sydney markets are expected to have experienced any growth in house prices in real terms over the previous three years, with all remaining capital cities expected to have recorded real price declined."
Mr Zigomanis said outside of the emergency lows of 2009, interest rates were at their lowest point in 40 years.