Survey reveals housing outlook

QUEENSLAND’S housing market is tipped to lead the country for capital growth in the next two years, while prices in NSW and Victoria continue to slide, according to a survey of hundreds of property professionals.

The latest National Australia Bank quarterly survey of 300 respondents reveals the industry expects house prices in Queensland to increase by 0.7 per cent in the next year and to have risen by 1.3 per cent in two years.

Cairns is among the areas tipped to enjoy above-average growth over the next year as well as Brisbane, the Gold Coast and the Sunshine Coast.

The outlook for rents is also positive and likely placing upward pressure on yields.

Property professionals predict rental growth in Queensland of 1.3 per cent in the next 12 months and to have grown by 1.9 per cent in two years.

Despite tougher restrictions on housing investment, local investors in new property markets were especially active, with more than 32 per cent of buyers in this market in the second quarter of 2018.

Foreign buyers’ appetite for property fell in all states except Queensland, where the share of sales jumped to a four-year high of 22.8 per cent in the past quarter. In Queensland, foreign buyers accounted for 5.4 per cent of all residential property sales in the three months to June 30.

NAB’s view of the housing market is less optimistic. Its Residential Property Index fell sharply in the June quarter – down 17 points to sit at +6, although sentiment in Queensland was higher at +14 points. Cairns Post