Brisbane property market set to rise in 2021!

Brisbane property prices set to rise in 2021

Brisbane property market set to rise in 2021!

Posted on December 17, 2020 by Mirren Property Investment

Brisbane property market set to rise in 2021!

If you’re looking to expand your investment property portfolio in 2021, we highly recommend looking into Brisbane. The River City has become one of the best property hotspots after COVID-19.

Brisbane’s property values remained resilient this year despite the economic problems brought by the pandemic, but new forecasts from ANZ and NAB expects a strong start in 2021.

Finally, after remaining flat over the last few years, the Brisbane property market looks to a brighter start in 2021. Since it’s house prices sunk in June 2019, Brisbane’s dwelling prices have now risen up to 3.5% over the last year.

But that’s not all, we’re still going to see its prices up for 2021. Let’s look at the forecasts made by Australia’s biggest financial institutions: NAB and ANZ.

ANZ reports a solid rise but a slow pace of gains

The latest ANZ housing report shows that house prices will continue to rise until 2021. Reports say that it could even rise to around 8 per cent on average by the end of the year and around 4 per cent in 2021.

The cause of this is found to be the combination of pent-up demand and low volumes. After the border closures and restrictions brought by COVID-19, people will want to start buying real estate again. This will drive huge growth in the property market.

Although there will be a rise in house prices, ANZ also notes that the pace of gains will be slow. This is already happening in December of this year with prices slowing to 1.4 per cent compared to 1.9 in November.

House price recovery has already begun starting in Sydney and Melbourne. Since last May, Sydney and Melbourne’s house prices are now at 9 per cent. Brisbane and Melbourne are very close to reclaiming their peak with Melbourne set to achieve this goal in just a few months.

After these states, other capital cities will follow thanks to low-interest rates and improved access to credit. We’re now seeing Adelaide’s price improve as well as Perth’s. While Hobart will have a slower pace of growth despite strong prices.

NAB expects house price rise in 2021

The National Australian Bank (NAB) expects a rise of around five per cent over 2021 and six per cent over 2020, with house price growth faring better than the apartment sector. According to the report, these outcomes are all driven by state-specific factors.

Brisbane along with Hobart and Adelaide will have the biggest gains with a rise of 7.4 per cent. This is followed closely by Perth at five per cent. Sydney and Melbourne, Australia’s two biggest housing markets will expect a weaker return because of the slowdown in population growth due to the border closures at the start of the year.

In the table below you’ll see NAB’s Q3 2020 forecast. It includes the dwelling price forecast for four consecutive years starting from 2019. It includes Australia’s top 6 capital cities: Sydney, Melbourne, Brisbane, Adelaide, Perth, and Hobart.

Here’s NAB’s Q2 forecast:

What More To Expect?

  • BIS forecasts Brisbane will see the strongest growth over the next three years.
  • Oversupply in the apartment sector will continue to drag down Brisbane’s wider housing market.
  • Prospective buyers will be lured by Brisbane’s affordability. Overseas migrants will want to stay in Brisbane.
  • There will be steady population growth and additional job creations as well as a low unemployment rate.

Make the most of the positive property market conditions in Brisbane. We can work with you to create a profitable investment strategy and find a cash flow positive investment property in Brisbane, in a timely manner.

Call us on (02) 8814 5275 or contact us here for a complimentary consultation.

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