Housing Prices Plunge Across Australia, While Brisbane Leads For Capital Growth

As the housing market continues to slide across the country, South East Queensland, and in particular Brisbane, continues to stand strong.

Over the past year the national average property price plunged 1.6% after the market peaked in September 2017, CoreLogic's July Hedonic Home Value Index revealed.

CoreLogic's head of research Tim Lawless said he expects prices to rack downward for the rest of the year.

Lawless said dropping capital city median prices could open a door for young Australians struggling to enter the market.

CoreLogic Index results as at July 31, 2018.

CoreLogic Index results as at July 31, 2018.

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

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

This is a trend CFMG Capital have been predicting for some time now, having been focussed on new project acquisitions in South East Queensland for 18 months, while completing and exiting projects in Sydney and operating one large project in Melbourne that will be finalised in 2019. This has resulted in a strong weighting to the Brisbane market at present which is proving to be stable, and while it continues to rise, also retains a good affordability dynamic.

Through the CFMG Land & Opportunity Fund, investors receive both certainty (the fund offers a 12% per annum fixed return, net of all fees), attractive return and diversification into multiple markets and the comfort that the experts at CFMG Capital have been ahead of the game with their acquisitions strategy, having exited the Sydney market just as it peaked, nearing the exit of the Melbourne market after enjoying unprecedented growth and securing strategic sites around Brisbane over a 2 year period. 

Sources: The Urban Developer, News.com.au, Nine Finance