Brisbane house prices no longer falling but property boom is unlikely: SQM

Brisbane house prices are to remain flat or record modest price rises for 2013 and 2014, according to the latest SQM Research report.

In SQM’s September 2012 Housing Boom and Bust report, Brisbane was predicted to rise 3% to 7% for 2013 - this has now been revised to 2% to 5% capital growth for houses and 3% to 6% for units.

The report says the latest interest rate cut by the Reserve Bank of Australia is likely to affect dwelling prices in Brisbane and may see prices rise towards 6% over the year and toward 2014.

Managing director of SQM and property analyst Louis Christopher says Brisbane housing prices are no longer falling but there is unlikely to be a property boom.

“We see no emerging property boom because there is simply too much real estate on offer for buyers right now and local economic conditions do not provide any stimulus for such a rapid rally.

“Nevertheless a modest to moderate rise in dwelling prices makes for a more sustainable and enduring recovery which is what is going to be the most likely outcome for the local market,” says Christopher.

The Brisbane CBD is forecasted to be the top performer over the next two years, with a forecasted 4% to 8% increase in dwelling prices.

East Brisbane is forecasted to experience similar growth and inner Brisbane is forecasted to experience a 2% to 6% growth in prices.

Meanwhile, West Brisbane is forecasted to record an insignificant increase of 0% to 4% due to a current abundance of supply.

The median house price for Brisbane is currently $681,000.

The SQM Research Brisbane Housing Boom and Bust Report will be available via the SQM Research website for $59.95.