BRISBANE’S recovering apartment market is set to lead the nation over the next two years, with values forecast to grow more than in any other major capital city.
Moody’s Analytics expects apartments to outperform houses throughout greater Brisbane in 2019, as the city continues to defy a national housing downturn led by Sydney and Melbourne.
A new report reveals apartment values are set to recover by 2.8 per cent in 2019, followed by sharper growth of 6.5 per cent the following year — equal only to Darwin.
A rise in unit values of more than seven per cent is expected in the inner city, Logan and northern Moreton Bay regions in 2019.
Double digit growth is expected in northern Moreton Bay in 2020, with apartment values set to jump 11 per cent.
Moody’s Analytics forecasts a gain in house values across Brisbane of 1.2 per cent over the next 12 months, with strength in the western and inner city suburbs offsetting declines in South Brisbane.
House values are tipped to grow the most in Brisbane’s western suburbs this year (4.5 per cent).
“This is a reversal of trend from the past few years,” the report’s authors said.
“Home values had risen more than 30 per cent since mid-2012, while apartment values had risen only around 5 per cent.”
It’s not good news for the nation’s two biggest housing markets.
Moody’s Analytics is forecasting a further six per cent correction in house values in Melbourne this year on the back of a 0.1 per cent decline in 2018.
And Sydney house values are expected to fall a further 3.3 per cent in 2019 following a 5.2 per cent drop last year.
“Australia’s housing market has continued its entrenched cooling trend in the final months of 2018,” the report’s authors said.
“The decline has been sharper in home values than for apartment values: Home values have fallen more than 4.5 per cent from their peak late last year, while apartment values are down 3.3 per cent.”