Queensland’s major regional centres are on track for big property price improvements in the next few years, according to market research firm Propertyology.
Propertyology believes that the resources states of Western Australia and Queensland will produce the best-performed property markets for the foreseeable future.
“We believe that Cairns and the Sunshine Coast have the best fundamentals in Queensland for 2019 but expect big improvement over the next few years from Mackay, Rockhampton, Townsville and Toowoomba,” Propertyology head of research Simon Pressleys aid.
In Western Australia, the regional locations of Albany, Busselton, and Margaret River may outperform Perth while Bunbury and Geraldton are tightening. The Pilbara would also be strong, he said.
The firm named Hobart as the frontrunner for capital city growth this year, followed by Perth, Brisbane, Adelaide and Canberra.
Those capital cities and a number of major regional locations were on track for solid property price growth in 2019 – as long as banks returned to more reasonable lending standards, it said.
Mr Pressley said a confluence of market and economic factors meant some locations could experience double-digit price growth this year.
That number would increase if banks stop playing God with solid borrower’s financial futures, he said.
Propertyology believes that, in addition to being harmful to the national economy, overzealous credit conditions had the effect of a 5 to 7 per cent drag on property prices broadly during 2018 and that it was in the national interest that banks and APRA buried the hatchet sooner rather than later.
“The best opportunities for the foreseeable future are in locations outside of capital cities where housing is more affordable, annual cash flows are stronger, housing supply is tight, and economic conditions are good,” Mr Pressley said.
“As we’ve already seen during the last couple of years, double-digit price growth will occur again in 2019 and beyond in many regional locations.”