QLD housing market to lead the nation for capital growth

Courier Mail, Elizabeth Tilley

While house prices continue to fall in NSW and Victoria, there could be a new state leading the country for housing growth.

 courier mail logoQUEENSLAND’S housing market is tipped to lead the country for capital growth in the next two years while prices in NSW and Victoria continue to slide, according to a survey of hundreds of property professionals.

The latest National Australia Bank (NAB) quarterly survey of 300 respondents reveals the industry expects house prices in Queensland to increase by 0.7 per cent in the next year and to have risen by 1.3 per cent in two years.

NAB 2 National Australia Bank has released its June quarter Residential Property Index. Image: AAP/Joel Carrett.Source:News Corp Australia

Areas tipped to enjoy above average growth over the next year include Brisbane, Cairns, the Gold Coast and the Sunshine Coast, with Coomera and New Farm singled out as suburbs expected to outperform.

The outlook for rents in the state is also positive and likely placing upward pressure on yields.

Property professionals predict rental growth in Queensland of 1.3 per cent over the next 12 months and to have grown by 1.9 per cent in two years.

Despite tougher restrictions on housing investment, the number of local investors in new property markets were especially active in the sunshine state, with more than 32 per cent of buyers in this market in the second quarter of 2018.

NAB 3 Aerial images of suburban houses in southwest Brisbane.Source:News Corp Australia

Foreign buyers’ appetite for property fell in all states, except Queensland, where the share of sales to that market jumped to a four-year high of 22.8 per cent in the past quarter.

“This may have reflected anecdotal reports of increased Chinese property investment associated with record numbers of Chinese student enrolments in the state,” the report said.

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