Brisbane is tipped to have the strongest property market in Australia in the next few years
Leading real estate industry figure John McGrath described the Brisbane market as undervalued and predicted it would soon start to catch up to southern powerhouses Sydney and Melbourne.
Mr McGrath, the founder of McGrath Real Estate, was speaking in Brisbane at a function on Wednesday.
He was “very, very confident’’ in where the property market was right now, particularly in Southeast Queensland.
“We think Southeast Queensland, and Brisbane is a focal point, is going to be one of the strongest markets in Australia.
“We think it is going to be the strongest market in Australia for the next five or six years.’’
Mr McGrath said the value gap between what buyers paid for a comparative property in Sydney and Brisbane would start to close.
“I see Sydney and Melbourne is close to their peak, I think we are approaching the peak of the market, I think Southeast Queensland there is significant growth happening here not in the next 12 months but over the next few years which will really bridge that value gap.’’
According to the latest CoreLogic home value index the median house price in Brisbane ($530,000) was almost half that of Sydney ($1.05 million).
Brisbane was also delivering the strongest returns for investors with rental yields of 4.1 per cent for house and 5.2 per cent for units, higher than Sydney, 2.8 per cent and 3.7 per cent and Melbourne, 2.6 per cent and 4.2 per cent.
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