The south east Queensland markets (Brisbane, the Gold Coast and the Sunshine Coast) are forecast to show the strongest price growth out of the major Australian centres through to 2010. These markets experienced slower conditions during 2004/05 and 2005/06, improving the affordability outlook.
The state has continued to experience strong underlying demand which has resulted in a deficiency of housing as economic growth has accelerated and wages growth remained strong. Strong population growth has continued and with the slowdown in residential construction, this has resulted in a significant deficiency of housing that Zigomanis believes will drive the upturn in this region.
Consequently, Zigomanis forecasts price growth in the Brisbane market to be 5% in 2007/08 as economic conditions ease, with growth forecast to accelerate through to 2009/10. Total growth in the Brisbane median house price of 22% is forecast over the three years to June 2010.
