- November 23, 2017
- Posted by: Rogers Property Group
- Category: Latest News
With the Sydney Property market cooling off after 5 years of solid growth, investors now turn their sites on the Brisbane market in anticipation of the next boom there.
But is this anticipation warranted? Will Brisbane be the next boomer?
We take a look at the stats and cycles today to see whether the next big one will be Brisbane.
There is a few key indicators that we can use that help us identify Brisbane as the next booming property market. In the past these indicators have been quite accurate in pointing towards a large increase in values.
• Annual change in dwelling prices. Brisbane and Sydney
• Percentage value difference between Brisbane and Sydney
• Interstate migration
Typically migration to Brisbane from Sydney rises when the Sydney market goes through a boom period. This in turn causes the Brisbane market to also increase. Quite obviously, the more people moving into a city means more houses are needed and therefore prices will increase as supply gets pressure.
The chart below shows the migration stats from Sydney to Brisbane. While current migration is not as high as in the previous 2 peaks of ‘88 and ’02, it is still 9% above average.
When migrating, employment is a key factor to be taken into account. In Brisbane’s peak times, employment has risen faster than the employment market in Sydney. This is happening again. Since April 2017, the employment market in QLD is rising faster than that of NSW. This can be noted on the graph below.
In summary, all the indicators discussed are pointing towards a strong increase in property values in Brisbane in the upcoming months. The difference between the 2 markets is huge with Sydney being almost double what the Brisbane market is. Migration to QLD is also high as is the employment in Brisbane. While nothing is a certainty, we can certainly look at the past to help us predict the future and this is why the smart money is currently flowing into the Brisbane market.