Sydney, Melbourne and Brisbane are still cities to watch in 2015: Colliers International

A new forecasting report from Colliers International has predicted ongoing growth in Sydney, Melbourne and Brisbane through 2015, particularly with investor sentiment expected to remain strong.

Peter Chittenden, Colliers International managing director – residential, explained in the Colliers 2015 Asia Pacific Property Outlook that low interest rates will attract first home buyers and investors.

“The outlook for interest rates is mixed, but headline indicators such as unemployment, construction activity and GDP point to a period of weaker overall economic growth which will result in interest rates remaining steady in the short to medium term,” he said, noting that it will be good news for residential property and will continue demand momentum.

Supportive conditions in 2015 for investment are expected to continue.

“Sydney, Melbourne and Brisbane residential markets will have the strongest residential growth, as weaker economic conditions in Western Australia will lead to a slowdown in development and investment activity in 2015,” said Chittenden.

Meanwhile, developments in central areas, near public transport, work and retail hubs will remain in high demand.

Chittenden expects that infill apartment developments will continue to grow next year, particularly with state and local government infill policies contributing to developers flocking into the CBD and inner suburbs in Brisbane, Sydney and Melbourne.

“This is evident in the volume of new apartments being developed and approved by local councils, and the strong growth in development site values,” he said.

“The Melbourne and Sydney CBDs have been the strongest performing markets, with the volume of apartments under construction in the next five years to reach and 18,000 and 6,000 respectively, buoyed by strong offshore demand, and a rapidly rising inner city population, a trend we anticipate will continue in 2015," said Chittenden.