Brisbane has the highest level of homeowners who believe prices will increase this year of the major capitals and regional Australia.
A new report has found Queenslanders are the most well off of all Australians, thanks to their homes – with half of homeowners in the capital expecting properties to increase in value this year.
The 15th Household Financial Comfort Report, released by ME Bank today (Thursday), found every second homeowner in the capital Brisbane (50 per cent) expected to see their property increase in value this year.
It was the highest level of confidence in increased prices across five major capitals and regional Australia, and way above the national average (39 per cent).
ME Bank consulting economist Jeff Oughton said the state had hit record comfort levels of 5.68 — “highest it’s been for Queensland” — and a big part of that spike had come off greater positivity across SEQ, the Gold Coast and Sunshine Coast especially.
Figure 27 — Overall financial comfort across different states and territories. Scores out of 10. Source: ME Bank
“You hear all the doom and gloom of the property market, the interesting thing here is householders are relatively positive about the outlook for house prices and we’ve assessed this in terms of only about 3 per cent expect values to decrease. That’s the owner occupiers they’re the mums and dads living at home.”
The report found Queenslanders’ financial comfort rose 8 per cent to hit the recordbreaking 5.68 in December.
In Brisbane an overwhelming 96 per cent of homeowners either expected their property to hold its value (44 per cent), increase a little (44 per cent) or increase a lot (6 per cent).
Half of Brisbane homeowners expect their properties to increase in value this year.
Not a single person surveyed expected their property value to “decrease a lot” in Brisbane while 3 per cent of homeowners expected to see prices “decrease a little” and another 3 per cent were unsure.
It’s a brighter picture than the rest of the country, with national figures showing 13 per cent of homeowners and 11 per cent of investors expected the value of their properties to fall this year.
Mr Oughton told The Courier-Mail that the major driver was that “homeowners have pretty much got no negative equity in their house”.
“Prices have been going up for years, and they have been given back a small correction and they tend to think they’ll correct and over the medium term they’ll be good.”
He said the difference with Queensland compared to the other states was that it was areas outside the capital driving growth.
“There’s been a significant jump in the last six months and that largely occurred outside Brisbane.”
Source: 07 February 2019 – https://www.realestate.com.au/news/qld-real-estate-confidence-at-record-high/