THE new year is expected to bring a renewed energy to the Brisbane property market with analysts tipping strong demand and finally some price growth.
While nationally, property prices rose by 9 per cent by the end of October, in Brisbane it was less than four per cent.
But RP Data research director Tim Lawless said Brisbane was arguably the best example of a city which showed strong fundamentals.
Rental yields were among the highest of any capital city at 4.6 per cent for houses and 5.6 per cent for units and house prices were much lower than Sydney and Melbourne.
Mr Lawless said areas such as the Gold Coast, Sunshine Coast and Far North Queensland were also expected to perform better next year on the back of higher activity toward the end of this year.
He said capital cities which had not much growth in 2013, such as Brisbane, were the ones to watch for higher capital gains in 2014.
“Brisbane is showing the best fundamentals and our view is that capital gains will start to outperform the broader capital city average over the coming year.”
Australian Property Monitors senior economist Dr Andrew Wilson tipped between five per cent and seven per cent growth in Brisbane house values next year.
“The Brisbane housing market will move more solidly through recovery mode in 2014 as the Queensland economy reactivates through a lower dollar environment,” he said.
“Brisbane’s inner and middle-ring suburbs, particularly to the north of the city have recorded the best performance this year, although the outer-suburban budget market has remained relatively subdued.”
Place CEO Damian Hackett said Brisbane’s residential property market had finished 2013 with a bang but he was not sure whether that surge would continue in 2014.
“We have seen great strength in the Brisbane residential market over the past few months,” he said.
“From a volumes’ perspective the top end is performing better than expected as we near the end of the year, and evidence of that is the sale of four properties for more than $4 million each, including one for $7.5 million, changing hands in a week.”
But Mr Hackett warned the current level of activity was so strong it may not be sustainable in the long term.
“That’s not to say the Brisbane market won’t perform in 2014 – it is certainly in the upturn phase at the moment.”
Terry Ryder of hotspotting.com.au tipped a big improvement in the Brisbane and Queensland market in 2014.
He said there was a large number of suburbs across Brisbane where there had been big increases in transaction levels.
Mr Ryder said this was usually a precursor to price growth.
“Generally speaking, I think 2014 is the year of Brisbane,” he said.
He said in 2010 property prices in all the major cities started a downturn, but Brisbane experienced a more prolonged downturn after the floods in 2011 and a change of state government in 2012.
He said in 2014 the Brisbane market would really start to move into a strong growth phase.