Brisbane house prices could rise up to 20 per cent over the next three years, the largest increase in national house prices for the period, according to BIS Oxford Economics.
The economic forecaster expects the increase in Brisbane’s median house price over the three years to June 2022, although it anticipates most of this growth to be recorded toward the end of this period.
The latest forecast, follows on from Moody's Analytics last month which expects modest rising in Sydney and Melbourne markets in 2020, with the housing price downturn expected to trough in the third quarter of this year.
BIS expects greater challenges in the unit market in the coming years.
“With new apartment construction rising at a much greater rate than houses through the upturn in new dwelling supply, and investors fuelling most of this growth, the excess supply is expected to be more concentrated within the apartment sector rather than houses,” the report notes.
“This downturn in new supply will sow the seeds of the next cyclical upturn.”
Capital city forecast: Median house price growth 2019 to 2022
Is it Brisbane’s time?
The greatest upside to house prices is expected in Brisbane, although BIS says this upswing will not be immediate.
“Price growth in the unit sector is expected to take longer to return, with a 14 per cent rise in the unit median forecast.”
Across the coasts, BIS expects the Gold Coast to record price growth of 9 per cent while the Sunshine Coast would see a 7 per cent upswing for the three year period, largely due to low vacancy rates but rising supply.