BRISBANE is tipped to have the strongest property price growth during 2016, amid a slowdown in the southern states.
In the latest NAB Residential Property Survey economists tipped Brisbane to experience property price growth of 3 per cent this year, well above the national average of 1 per cent.
The report also surveyed industry professionals about what they thought would happen in the market this year. They tipped Queensland to lead the country for capital growth in the next one to two years.
The suburbs they identified for above average capital growth this year were mostly centred around the Brisbane CBD and Gold Coast:
Brisbane, Bulimba, Coomera, Gold Coast, Lutwyche, Mermaid Beach, New Farm,
The report also said foreign buyers would most likely be less active in Australia, except for in Queensland.
Last year 14.6 per cent of foreign buyers in Queensland purchased apartments valued between $1 million and $2 million while 72 per cent bought houses valued less than $1 million.
The report found nationally the market had already started to cool
Sydney’s days of big gains eased with NAB predicting it’s growth will be only 0.6 per cent this year and Melbourne will be about 2 per cent.
“The Adelaide market is not expected to improve much in 2016 – an increase of 0.2 per cent roughly offsetting a similar fall in prices in 2015,’’ the report said.
“Perth will remain very weak as prices decline by another 3 per cent.’’
Apartments prices are tipped to drop in most capital cities this year.
“Our overall assessment is that the possibility of a more severe correction in the Australian housing market is still remote, although the risks have escalated over the past six months.