By Jonathan Chancellor, Property Observer
Friday, 07 February 2014
Leading agent John McGrath has forecasted that the strongest east coast market over the next three years was likely to be south-east Queensland.
“The market I am really excited about is south-east Queensland,” he recently blogged on Switzer.
“Prices in Brisbane and the Gold Coast are still below pre-GFC levels, while Sydney is about 10% above now, so there is a greater likelihood of better capital growth in the sunshine state over the next few years.”
McGrath maintains the median house price in Brisbane is so much cheaper than Sydney and eventually people are going to start taking advantage of that, either by moving there or investing there.
Currently, the median house price in Brisbane is $470,000 whereas Sydney is $775,000. Brisbane’s median apartment price is $383,000 compared to $557,000 in Sydney.
McGrath says there were some promising indications in 2013, with Brisbane house prices up 5.3% and apartment prices up 3.5%.
RP Data also provides joint Brisbane-Gold Coast data showing a 4.9% growth in house prices and 2% in apartments.
McGrath says a “phenomenal spring season” in Sydney last year, I was expecting another good year for Sydney,” but the strongest market over the next three years is likely to be south-east Queensland.
“In short, we ain’t seen nothing yet! We’re just at the beginning of the recovery.” McGrath suggests of south-east Queensland.
My strong caveat is that houses will be a safer bet in Brisbane and especially so on the Gold Coast.