Double digit growth expected for Queensland coastal cities in the next three years

Double digit growth expected for Queensland coastal cities in the next three years
Double digit growth expected for Queensland coastal cities in the next three years

There are eight regional cities expecting capital growth above double digits over the next three years, according to the Australian Housing Outlook 2014-2017 prepared by BIS Shrapnel for QBE.

The cities are located in New South Wales, Victoria and Brisbane.

Here are the markets QBE is tipping to grow:

New South Wales

Newcastle: Total price growth of 15% forecast for 2014/2015 and 2015/2016, accelerating in the latter year as affordability in Sydney becomes more challenging and outward migration picks up. Minimal increases expected in 2016/2017, resulting in total growth of 17% over the three year horizon.

Illawarra: The local rental market is tight, with vacancy rates low. Price growth is expected to be 7% per annum over 2014/2015 and 2015/2016, with rises around 1% in 2016/2017, to a total of 16% over the three years.

Victoria

Ballarat: With growth below that of Geelong and Bendigo over 2013/2014, population growth has remained strong and vacancies tight. Prices are expected to rise by a total of 11% in the three years to 2016/2017.

Bendigo: A strong economic environment and the new $600 million Bendigo hospital is underpinning employment. As a result, 6% growth is forecast over 2014/2-15, although a progressive slowing will then occur. As of June 2017, the three year growth is expected to total 10%.

Queensland

Gold Coast: A total 15% growth is forecast for the three years to 2016/2017. This is on the back of prices down 16% from peak in real terms as of June 2013. A pick up in the construction sector, and infrastructure will help underpin growth.

Sunshine Coast: A total 14% increase is expected over the three year period on the back of the Sunshine Coast University Hospital, and strong intrastate and interstate migration.

Townsville: Vacancy rates increased over the past 12 months, with the median price dropping by 1% due to the impact of fiscal consolidation on jobs. However, conditions are expected to improve to a total 10% growth over the three years.

Cairns: Showing signs of a recovery, vacancy rates have tightened with a lack of supply coming onto the market. The median house price has already seen a 10% gain, and can expect a further 14% over the next three years as the tourism sector strengthens.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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