The Courier Mail
Property values in Brisbane are tipped to accelerate throughout the rest of the year with a new report by NAB predicting a 3 per cent jump over the year to December 2015.
In the year to April, Brisbane house prices recorded muted growth of 2.2 per cent and it may sound moderate but it is actually the third greatest increase in capital city home values over the past year.
Despite months of strong growth Sydney is expected to continue to lead the price growth charge by 10 per cent. although it will slow by 2016 to 5 per cent.
Melbourne will be 6.2 per cent and will slow in 2016 to 3.5 per cent and Brisbane is tipped to grow by 3 per cent for the 2015 calendar year.
Drilling down into individual suburbs shows some stellar house price rises so far.
Houses in South Brisbane have so far recorded the highest capital gain by jumping 23.9 per cent to a median value $807,794, followed by Cedar Creek in Moreton Bay which rose 19.1 per cent to $809,944 and New Farm which rose 19 per cent to $1,206,455.
Units in Dutton Park soared a whopping 37.2 per cent in median value to $508,118, in the year to April, followed by units in Banyo appreciating 20 per cent and to $413,356. Capalaba units have also grown 17.9 per cent to $343,471.
Brisbane’s most expensive suburb to buy a house continues to be New Farm ($1,492,939 median value), followed by Ascot ($1,290,733), Teneriffe ($1,206,455), Hamilton ($1,162,066) and Chandler ($1,138,935).
The most affordable suburb to buy home continues to be Russell Island ($222,398) and the Ipswich suburbs of Riverview ($228,673), Leichhardt ($230,900) and Basin Pocket ($231,242) were also affordable within 50kms of the CBD.
The most affordable places to buy a unit are all in Logan City Council where you can get a Bethania unit median prices are $150,372.
NAB chief economist Alan Oster said he had expected the Brisbane market to fire before now, but it was continuing at a “slow and steady pace”.
He said Brisbane home-owners should see increases of 5 per cent by 2016.
“Brisbane we are more optimistic into 2016, because that market seems to be gathering momentum and also this is one area where the experts voted that was the market they thought would grow the fastest in 2016,” he said.
“We have got that at about the same pace as Sydney (in 2016).
Mr Oster said the predicted growth in Brisbane had not taken off yet, but 2016 should see the same level of growth as this year, plus gradually improving a little bit.
By 2016 Mr Oster says price growth nationally will be at lower levels, around 3. 8 per cent.
This will be a result of rising unemployment, low household income growth and cost of living pressures.
He says the one thing that could derail their predictions was the banking regulator the Australian Prudential Regulatory Authority but doubts it will have any major impact on the market.