Brisbane was expected to see a “recovery in sales, not necessarily price or rental growth” according to a new forecast by Matusik Property.
A RENTERS’ paradise could be ahead for tenants in Brisbane, as the latest industry forecast predicted rent would stagnate for houses and plunge for units in the next 12 months.
Brisbane’s significant unit stock levels saw project advisers Matusik Property predict apartment and attached dwelling rents would plunge by up to 10 per cent in the coming year, with house rental growth to sit between zero to 2.5 per cent.
The firm’s Capital City Market Outlook, issued by director Michael Matusik, said Brisbane was “still in recovery, but a mild and spasmodic one”.
“A recovery in sales, not necessarily price or rental growth,” Mr Matusik said.
He predicted Brisbane house values would rise between 5 and 7.5 per cent in next 12 months, while unit values could see a drop of between 2.5 to 5 per cent.
“Good affordability, with some migration and investor interest, now, from interstate, could see things improve. But the lack of local job growth and the new apartment overhang is dampening our forecast.”
House values were expected to rise between 5 and 7.5 per cent in the coming 12 months, according to Matusik forecasts.
The pace of Brisbane’s house value growth was expected to be the same as Sydney which has now hit the “end of the market upswing”, he said.
The report said Sydney was “now being constrained by buying and rental affordability, plus low rental yields” but growth in house rents there was expected to outpace Brisbane given sales demand still exceeded resale supply and new housing supply was relatively tight.
“We anticipate that attached dwelling values, and rents too, could rise by 2.5% to 5% over the same period.”
Despite facing similar issues, the strength of demand in Melbourne was expected to see strong rises with a forecast of 7.5 to 10 per cent for house value growth, and 2.5 to 5 per cent for attached dwellings.
Mr Matusik said demand, supply and external factors were a factor in the outlook of various cities, with not all of them in the same position.
“External factors do come into play in Sydney and Melbourne, for example, where the markets are being influenced by overseas buying. This is having an impact not only on new stock, but on the existing housing market as well. Other capitals are not similarly affected.”
