Using the Reserve Bank of Australia’s model of the housing market, Coolabah Capital Investments (CCI) is predicting substantial property price growth through to the end of 2023, as well as similar gains in real residential investment.

The forecast, based on the model developed by RBA’s economists, Peter Tulip and Trend Saunders, foresees house prices growth of 8 per cent over 2021, including an additional 9 per cent in 2022, before a final spike of 8 per cent in 2023.

This takes the cumulative growth through to end-2023 up to 25 per cent.

But while a similar growth trajectory is expected across residential investment, with CCI predicting a 26 per cent lift over three years, rents are tipped to drop by 2 per cent through to end-2023, as vacancy rates peak.

“The ranges are large, but not surprising considering that house prices and rents are volatile. For example, the standard deviation of annual growth in house prices over recent decades is nearly 7.5pp, while the standard deviation of growth in rents is almost 3.5pp,” Kieran Davies, chief macro strategist at CCI, explained.

According to CCI’s modelling, in real terms, national house prices are currently up about 6 per cent from prior to the pandemic, which contrasts with past recessions where the median peak-to-trough decline has been 15 per cent.

Even during the global financial crisis – which the RBA classes as a brief slowdown rather than a recession – real house prices fell by 9 per cent.

“The resilience of prices during the pandemic stands as testament to an aggressive and generally unprecedented fiscal and monetary policy response across the advanced economies, with a critical role played by job retention schemes,” Mr Davies said.

Fears over affordability and inequality 

The fear, however, is that a large rise in house prices could intensify concerns over affordability and inequality.

And while homes are “very affordable” insofar as debt-servicing costs are very low, Mr Davies noted that raising a deposit still remains a real barrier to entering the market.

“Easy monetary policy reduces income inequality by lowering unemployment, but can add to wealth inequality, which reflects very low home ownership among low-income/resource households.

“CCI’s view is that concerns over affordability and inequality are better addressed by government via the tax/transfer system. The other step that government can take is to address the longstanding inflexibility of the supply side of the housing market, which has seen lower interest rates manifested in higher house prices more than the construction of new homes,” Mr Davies explained.

And while he believes that the recovery in house prices to date is a reassuring development for the RBA, in that higher prices signal that policy is working, Mr Davies does see some risk of monetary policy tightening sooner than expected.

CCI’s base case, however, is that policy will need to remain accommodative for an extended period, given that history shows it has been very difficult to achieve full employment in recent decades.

But there are other risks, namely the real possibility that banks may lower their lending standards.

“We expect the RBA will keep policy loose until it achieves its economic objectives, there is always the risk that banks lower lending standards as house prices strengthen, which would trigger a regulatory response that would challenge the model’s forecasts,” Mr Davies said.

As for industry murmur following New Zealand’s regulatory intervention, Mr Davies opined that New Zealand’s market is very different, with strong investor-led growth in debt rapidly propelling prices to an all-time high during the pandemic.

“In contrast, the starting point for Australia is markedly different. Even with the gain during the pandemic, real house prices are yet to surpass the peak reached in 2017, while credit growth is slowly lifting from depressed levels on strength in lending to owner-occupiers,” Mr Davies concluded.

The federal government has extended the deadline to begin construction under the HomeBuilder grants program by an additional 12 months.

Those who were eligible for the grant before its March 31 conclusion – some 121,000 building applications, according to the government – will now have 18 months after signing contracts to commence construction.

This is a year longer than previously allowed.

“This extension in the commencement date for which the first slab can be laid is a very important step,” Treasurer Josh Frydenberg told reporters.

“It will help ensure a pipeline of economic activity.

“This program has grown over time because more people have decided to use this grant to fulfil their own dreams … you have to remember when we put this program in place to start with, jobs were being lost on building sites across the country.”

Mr Frydenberg said the scheme would cost the government $2.5 billion but had helped tip some $30 billion into Australia’s construction sector amid the COVID-19 pandemic.

Approvals to build private homes hit a record high in February, fuelled by HomeBuilder and record low interest rates.

The Australian Bureau of Statistics said since the introduction of HomeBuilder in June 2020, private house approvals have risen by almost 70 per cent.

In February, home approvals jumped by 15.1 per cent to 13,939 houses, breaching the previous peak set in December last year.

The HomeBuilder scheme was introduced during the depths of the COVID-19 pandemic and late last year was extended to March, although the size of grants was trimmed from $25,000 to $15,000.

The Property Council of Australia on Saturday welcomed the deadline change, saying HomeBuilder had been an “economic bullseye” and the extension would ease pressure on home builders to begin construction quickly.

The Housing Industry Association said its members had been constrained by supply chain issues and labour pressures, and needed the additional time.

“The uptake of HomeBuilder has created a lifeline of work for tradies and helped support tens of thousands of first home buyers to achieve their dream of owning a home,” the HIA’s Graham Wolfe said in a statement.

“Members have been severely impacted by global supply constraints and labour pressures. Builders and their clients have also been juggling delays in finance approvals, planning and building approvals and land title.”

Master Builders Australia chief executive Denita Wawn said 70 per cent of builders were struggling with delays or cost increases for labour and materials, and they could now space out their construction pipeline.

The Labor opposition also welcomed the change, with housing spokesman Jason Clare saying it “should have been made a long time ago”.

But Housing Minister Michael Sukkar said: “The opposition did not support the HomeBuilder program, the opposition opposed HomeBuilder … the opposition sadly has been left wanting when it comes to the residential construction industry.”

View all information here https://drive.google.com/file/d/1ND9OBY2OzaiDDq8urdj9sx8bTI5C2xcW

Tenants in some capital cities are offering up to $100 a week in extra rent to secure sought-after rental properties, as eviction moratoriums end amid the country’s two-speed rental market.

Some landlords are also taking the opportunity to raise their asking prices as crisis-era bans on rent hikes expire.

At the height of the pandemic last year, states and territories in Australia implemented bans on evictions and freezes to rental increases to safeguard tenants affected by COVID-19 as incomes dried up and job losses rippled throughout the country.

A year on, the health situation has improved with many returning to work and each jurisdiction either easing rental safeguards or lifting them entirely.

In Perth, tenants are offering anywhere from $30 to $50 and even up to $100 extra per week in their rental applications to secure a home due to the shortage of rental properties, according to Arena Real Estate Agents leasing consultant Joe Hotchin-Lott.

It comes as the city’s rental vacancy held at a tight 0.7 per cent in March, Domain data shows.

Landlords have been able to increase rents in Western Australia since March 29, and Mr Hotchin-Lott said many tenants were opting to renew their lease, agreeing to rental increases because there were so few homes to choose from.

“When you have that 12-month block [on rent rises], we’re seeing those rent increases appearing in large blocks,” he said. “Normally you can budget for a $20 or $30 increase but when you see a $50 increase people are getting a bit scared.”

Travel bans have also added pressure to Perth’s rental market, with mining companies requiring traditional FiFo workers to stay put rather than paying for two-week quarantine costs, he said.

“I’ve seen people offer $50 or $100 more to secure a place. A lot of people are begging at home opens. I do feel for them … unfortunately, I have a job to do.”

n Hobart, the city has been plagued with high asking rents and few homes to choose from for years as many rental properties were turned into short-stay accommodation to cater for Tasmania’s booming tourism.

But that changed last year due to the pandemic as the market was “flooded with fully furnished properties” that were converted back into long-term rentals so landlords could avoid losses, according to Bec MacGregor, head of property management at Ray White Hobart.

Despite the rise in supply, strong demand from newly arrived and cashed-up mainlanders meant many landlords opted to keep their properties on the long-term market because it was easier to secure rental income than short-term lets.

“It is really hard for local renters … people move down here on really good incomes. People who live [locally] can’t afford the rents down here,” Ms MacGregor said.

Since the moratorium was lifted, some landlords have taken advantage of raising rents while others decided against taking action.

“As soon as that [moratorium] was lifted on February 1 the [landlords’] expectations were that their rents should be increased,” she said. “I’ve had a couple of other owners who have said people are still trying to find their feet so we will look at rent increases next year.”

Hobart’s vacancy rate has tightened in the past month to just 0.4 per cent in March, down from 0.6 per cent in February.

In Canberra, the combination of returning DFAT personnel from overseas and various embassy staff extending their leases was squeezing the availability of rentals, Purnell’s head of property management Brie Purnell said.

The city’s vacancy rate tightened to 0.7 per cent in March, down from 0.9 per cent in February.

But a strong jobs market in the national capital meant many tenants have barely felt the same pinch, said Ms Purnell, who leases inner-city properties.

“What [was] probably the strangest part of our experience in Canberra is it seemed to be business as usual,” Ms Purnell said. “We do feel quite insulated from the bigger consequences of COVID.”

Only a fraction of tenants required a rent reduction during COVID-19, Ms Purnell said, adding the easing of Canberra’s rental moratorium barely made a difference to many well-off tenants.

“The majority of our tenants are public servants as a result of parliament house and government departments around these inner suburbs,” she said. “ A lot of our tenants’ employment remained quite secure.”

The number of property listings on the market slumped in the run-up to Easter, leading to fears home prices will surge further as demand continues to outpace supply.

With the volume of houses and units for sale in Sydney dropping last week by 12 per cent over the week before, in Brisbane by 8 per cent, in Adelaide by 9.7 per cent and Darwin by 11.4 per cent, Melbourne showed a miniscule rise of 1.5 per cent.

The only other exceptions to the downward trend were Hobart, where listings rose by 18.7 per cent for the week to March 28, Canberra by 10.7 per cent, and Perth by 7.1 per cent.

While many vendors tend to avoid the Easter break as it can prove disruptive to a sales campaign, especially with school holidays tagged on, and Anzac Day, it seems there are mightier forces at work.

“I think we’re currently seeing a depletion of current stock in the market, where buyers are absorbing all the old listings as well as the new as there’s a real shortage of supply,” said Domain senior research analyst Nicola Powell.

“That’s likely to translate into stronger price growth, so there’ll be a point at which affordability is going to bite, which will end up deterring some buyers, especially first-home buyers. Most markets are really robust,” Dr Powell said.

“We’re seeing strong demand, higher house finance and in Sydney, we’ve had a clearance rate of over 80 per cent for eight weeks in a row, while in Melbourne last weekend we saw the highest volume of auctions since 2018.”

The monthly figures show low listings, too, actually dropping 11.8 per cent in Darwin over the previous month and rising only by 4.5 per cent in Sydney, 1.8 per cent in Brisbane, but by 8.6 per cent in Melbourne and jumping by a substantial 14.5 per cent in Adelaide. In Hobart, the monthly rise was tiny, at 2 per cent and Canberra at 2.1 per cent, while in Perth listings leapt up by a massive 25.8 per cent.

But with low listings over most state capitals, the danger is that the shortage of stock could spiral, with a lack of supply dissuading potential vendors from putting their homes on the market in case they can’t find anything to buy.

That’s true for some pockets of Melbourne, says Margaret Duncan, of Belle Property St Kilda. She’s struggling with a lack of stock generally, and a lack of bigger family homes – in huge demand after the COVID-19 lockdown made locals keener to have more space for the future – in particular.

“People now want to buy something a bit bigger because they’ve spent so much time huddled together, they can’t bear the thought of doing that again,” Ms Duncan said. “But, for every one we sell, we have the under-bidder and the under-under bidders all looking for more, and people not wanting to sell in case they can’t find something.

“With such a lot of competition for limited listings, it’s pushing prices up and up.”

In Sydney, it’s the same story. Listings are down now, but everyone’s hoping they might pick up after Easter – yet there are no guarantees.

“There’s a 100 per cent shortage of listings and I can’t really see when it’s going to free up,” said Debbie Donnelley, of PPD Real Estate. “It’s an absolutely crazy market, and it looks only about to get crazier.”

A two-bedroom apartment she recently sold on Etham Avenue, Darling Point, in original 60-year-old condition, had a reserve of $2 million but sold for $3.3 million, at the same time as a two-bedroom house, also unrenovated, sold for $2.4 million instead of its expected $2 million.

That kind of frenzy is being felt across the country. In Canberra, Luke McAuliffe, of Luton Properties Gungahlin, just had 100 groups through a three-bedroom house in Ngunnawal on its first open-for-inspection, and 80 through another property in Taylor.

“There hasn’t been a chance for stock to keep up with demand,” Mr McAuliffe said. “Supply just can’t keep up. It’s hard to say when it’ll ever even up, or slow down.”

In Brisbane, the low number of listings, with only a 1.8 per cent rise over the month, is also putting pressure on prices.

“We’ve had an undersupply of property for the last three months and the market is coming through very strongly with some good sales,” said Jackson Evenden, of Ray White Sherwood.

“With low listings, we’ve achieved good prices, but the momentum going forward we feel will encourage more people to put their properties on the market in the hope of getting 15, 20 or 25 per cent over what they might have got 12 months ago. And, then, worst case scenario, they’ll just rent until more property comes on.”

Desperate first-home hopefuls locked out of expensive capital cities are renting in the city and investing in more affordable regional property markets rather than leaving their cash in the bank, buyer’s agents said.

Stunning major-city price growth has caught out many buyers, quickly leaving them behind since the market began to bounce back last year.

The recovery has continued this year with the strongest pace of growth for years. Sydney property values jumped 2.5 per cent and Melbourne rose 2.1 per cent in February alone, on CoreLogic data.

As a result, many potential first-home buyers have been priced out of their dream suburbs despite reasonable borrowing power and good deposits – which, in an ultra-low interest rate environment, are all but collecting dust in the bank.

It has prompted many first-home buyers in the past six months to reconsider “rentvesting”, BFP Property Buyers founder and principal Ben Plohl said – parking their money in an investment property while they continue to rent in their desired location.

In one instance, a first-home buyer with a $1 million budget struggled to find a suitable two-bedroom apartment on Sydney’s lower north shore.

“Unfortunately, given the market has run away from some people, we’ve said unfortunately you can’t get into the suburb or pocket where you rent now,” Mr Plohl said.

That buyer has since split their $1 million budget into two regional markets with plans to buy a property in Albury-Wodonga and another in Bendigo.

• Related: How much more will it cost to buy a house if prices rise as much as economists forecast?
• Related: Australian house prices set to jump further before any curbs on lending by APRA
• Related: Regional NSW outpacing Sydney for property price growth

While it is unlikely they will cash out of those markets anytime soon, the plan is to build a property portfolio in locations with strong rental yields and capital growth potential to eventually buy back into Sydney, Mr Plohl said.

Another first-home buyer on the Central Coast with a budget of $550,000 decided to rentvest in Newcastle after being priced out of the one-bedroom apartment market in Sydney’s inner west.

Instead they purchased a three-bedroom house on a 600-square-metre block in Maryland, 14 kilometres west of Newcastle’s CBD, which Mr Plohl said had already seen some price growth.

These buyers are not alone, with a third of Gen Zs wanting the ability to work and rent in the city while still owning an investment property in a holiday town, according to ING Australia research that surveyed more than 1000 Australians.

The survey also highlighted top reasons to invest in property, with 40 per cent of Australians wanting to safeguard their future or their family’s future, while 37 per cent were motivated by low interest rates and a similar number wanted extra income.

Melbourne first-home buyers are also turning to rentvesting after struggling to get onto the property ladder in the city, with Victoria’s housing market taking off since restrictions eased both in the capital and surrounding regional markets.

“Through COVID [regional markets] have outperformed metro cities so a lot of people are getting their cake and eating it too,” said Cate Bakos, president of the Real Estate Buyers Agents Association of Australia.

In a low-interest-rate environment many buyers are able to yield a strong rental return that will cover mortgage repayments or even deliver some positive income, Ms Bakos said.

One Melburnian bought a house in Grovedale, Geelong, for $451,000 as an investment property after being priced out of Boronia, which had a median house price of $700,000 over the 12 months to December 2020 on Domain data.

“They’re hoping to improve the property with a bit of elbow grease, get the rent up and work on the property to pay itself down,” Ms Bakos said. “When they have a bit of equity they will tap into that and buy a home in Melbourne.”

Buyers were cautioned not to expect short-term gains in regional markets, Ms Bakos said, despite recent performance, because rentvesting was better suited to buying and holding for a longer period.

Streamline Property Buyers managing director Melinda Jennison said she had received dozens of inquiries from first-home buyers in Sydney and Melbourne hoping to buy in Brisbane.

“We get about 10 to 15 inquiries every week because they’re priced out of Sydney and Melbourne,” Ms Jennison said.

One Sydney buyer was hoping to purchase an entry-level three-bedroom house in Brisbane along a transport line for about $600,000 with a predicted growth of 20 to 30 per cent in the next five years in Brisbane, Ms Jennison said, yet was facing strong competition.

“That’s over $150,000 of equity growth … that’s more than the client can save themselves. At least their money is working harder for them by parking their money in property while they continue to save.”

ANZ has revised its forecast expecting Brisbane house prices to rise by 16 per cent by year’s end but Finder’s senior editor for home loans Sarah Megginson said buyers needed to be wary of the fluctuating property cycle.

“The goal of rentvesting is to buy an asset that appreciates in value over time, so you can use the profits to one day buy your own home. But, there is the risk that you’ll buy an investment property that doesn’t grow in value,” Ms Megginson said.

“We’re not out of the water with COVID-19 just yet, and there is still potential for future market volatility – all it would take is another outbreak and extended lockdown or economic slump to see market conditions shift really sharply.”

The reopening of Australia’s international borders could have the potential to put further pressure on already-high house prices and even overheat the market entirely, experts warn.

Recent Corelogic data shows Australian house prices jumped a huge 2.1 per cent in February in what was the largest month-on-month increase in 17 years.

The data showed that Sydney’s median house price increased by 4.8 per cent over the last three months while Melbourne’s median house price rose by 4.2 per cent.

AMP Capital chief economist Shane Oliver told Domain Group that a careful and slow and gradual reopening of international borders is needed to ensure a sudden spike in housing demand doesn’t send house prices skyrocketing even further.

He points out that rather than allow immigration to suddenly jump back to what it was before, by gradually phasing back its return, the property market would be able to adjust without becoming even more overheated.

“If we were to allow a return to normal immigration levels then you’re suddenly doubling demographic demand again at a time when the property market is still hot from low interest rates, then that could cause a real problem in terms of adding pressure on prices and worsening affordability,” he said.

The migration influx would also come at a time when the property market is already experiencing strong demand thanks to a palpable change in market sentiment which has translated into strong buyer activity at a time when there isn’t much good stock on the market.

According to property investment expert Michael Yardney, there is already a “perfect storm” of factors suggesting that 2021 will be a great year for property investors:

• Consumer confidence has been gradually improving, as has business confidence
• COVID numbers are very low and the prospects the success of our vaccination program is excellent,
• Our economy is improving faster than many expected and likely to grow strongly in 2021-22
• Auction clearance rates remain consistently strong, not just in the two big auction capital of Melbourne and Sydney but around Australia.
• While more buyers and sellers are in the market and transaction numbers have increased considerably, the lack of good quality properties for sale has created a seller’s market, where buyers have little choice and are pushing up values of “A grade” homes and investment grade properties.
• At the same time, the banks are keen to write new business – another positive for our housing markets.
• Bank loan deferrals have been falling – there’s no chance of an avalanche of forced mortgagee sales as many were worried about last year.
• The “guarantee” by the RBA of interest rates remaining low for at least 3 years is giving home buyers and investors confidence to commit to purchasing properties
• Moving forward further jobs creation, consumer confidence and business confidence (leading to spending and employment) will underpin our housing markets.

When will migration levels return to pre-covid?

According to the Centre for Population, it could be three years before net overseas migration returns to pre-pandemic levels.

In the last full financial year before the pandemic hit, Australia’s net overseas migration was 239,7000.

It fell to 154,100 in the 2020-21 financial year, and is forecast to drop to -71,600 this financial year and to -21,000 in 2021-22, before returning to positive growth of 95,900 in 2022-23 and 201,100 in 2023-24.

The National Housing Finance and Investment Corporation (NHFIC) has warned that housing affordability could worsen from 2023, particularly if supply doesn’t respond to demand when it recovers on the back of international borders reopening.

So what will happen to our property markets if borders don’t open?

Economist Saul Eslake recently told The Sydney Morning Herald that recent gains in the housing boon are unlikely to be undone.

“I would say the rise in house prices is probably sustainable,” he said.

“Indeed, we could see further gains in many regional cities as people adapt to the opportunities created by the more widespread acceptance – at least for white-collar occupations – of working from home.

“Much of the demand is coming from first-time buyers, who appear to perceive an opportunity to get into the housing market without facing the competition from cashed-up immigrants or negatively geared domestic investors, which has ‘squeezed’ them out for most of the preceding 30 years.”

But Westpac warns that prolonged border closures could hurt house prices from 2023.

“If borders remain closed for longer or migration inflows are slow to restart that could lead to a market-wide physical oversupply of dwellings by 2022,” the bank said.

“How that may influence market conditions and price growth is unclear.”

Transformed, revamped and booming. They are three words that now characterise the once industrial town of Newcastle in 2020. The City of Newcastle Council has predicted the area’s population to rise by 33% by 2036, with many property owners and investors describing it as a “hidden gem” and an “economic powerhouse.” With property prices on the rise and on the precipice of a boom, this article will outline what is driving Newcastle’s economic growth and answer the question: Should I Invest in Newcastle?

Newcastle’s property price growth has been consistently rising over the past 5 years, with it experiencing average growth in the period of 7.6% per annum. Forecasters are predicting that prices are set to grow by 7% in 2021. Vacancy rates have also reduced, with it at a low of 1.9% in 2018.

What is Driving this Growth?

Sydney’s Property Market

A lack of supply in Sydney’s property market is driving up house prices. Similarly, its significant population boom has put a strain on infrastructure, leading to significant road traffic. This is causing investors, prospective house buyers and those tired with the traffic and hustle and bustle of the city to look for other options, leading to significant interest in Newcastle property. The ability to purchase 3-4 bedroom properties that are under $800,000 and within 10-15 minutes of the beach and the CBD is an attractive offer compared to the traffic and substantial mortgage or rental payments of Sydney. Newcastle’s laid back lifestyle and lower property costs are driving investment, with many Sydneysider’s opting for change.

Newcastle’s Infrastructure Development

Newcastle is experiencing significant infrastructure development, significantly around the CBD and its Port. This is both driving jobs and investment into Newcastle, and transforming it from its industrial city background into a cultural and entertainment hotspot. Examples of these investments include the $9 billion being put into developing Newcastle’s Port to allow for international cruises and larger capacities for exports and imports. Similarly, half a billion is being allocated to establish an entertainment precinct in the CBD. Significant investment into suburban areas outside of the CBD is occurring, such as the development of the Maitland Hospital, and the significant amount of housing being built.

Development of the University of Newcastle and the Williamstown RAAF Base

Both universities and army bases can act as critical economic drivers for regional towns, as they attract large young populations, and significant knowledge and experience. This can be used to drive engineering, medical and business investment. The University of Newcastle has been making efforts in expanding its presence in the CBD, with it spending $95 million on its NewSpace campus. This has driven economic activity through its substantial creation of jobs, and its employees and students both spending in the CBD. The University of Newcastle has also announced the $25 million construction of its Honeysuckle campus in the city, which will only further boost economic activity.

The Williamstown RAAF base is another economic driver for Newcastle. The Federal Government has announced plans to spend $12 billion on F-35A joint strike fighter jets, a squadron of which will be based at Williamstown. This will require runway upgrades, maintenance crews, weapon loading centres and many other significant investments. It is estimated that 8,500 jobs will be created with this expenditure, creating further economic investment the Newcastle area.

Brisbane has emerged as one of Australia’s best spots for investors after two major studies put it close to the top of their lists, even before the announcement that it’s the preferred candidate for hosting the the 2032 Summer Olympics.

Westpac’s Housing Pulse report for February 2021 reported that Brisbane dwelling prices are veering into “boom market” territory, predicting over 10 per cent growth this year.

“Queensland’s upswing has accelerated over the last three moths and is starting to tip into boom territory,” says the Westpac report author, senior economist Matthew Hassan.

“Sales are running well ahead of listings, especially for houses, with stock on market down to just 3.4 months of sales in Brisbane – the long run average is five months.”

The only softer markets in the city are top- and middle-tier Brisbane units and the inner CBD.

“Other segments are showing robust gains,” he says.

In addition, Knight Frank’s Wealth Report 2021 found Brisbane was one of the highest-performing Australian cities of the last year, behind only Perth and neighbouring Gold Coast.

It recorded growth of 2.5 per cent in its prime residential market – well above the global average of 1.9 per cent. 

That dwarfed both Sydney’s year average of 1.1 per cent and Melbourne’s of 0.9 per cent. 

“Queensland has fared very well throughout the whole COVID-19 situation,” says Michael Vettoretto of Queensland Sotheby’s International Realty.

“There’s higher demand for property in Brisbane and we’re seeing our inquiry level increasing by 42 per cent. 

“There’s so much demand from Sydney and it seems almost as though the whole of Victoria is trying to evacuate up here, looking for lifestyle. With interest rates at an all-time low, it’s absolutely a great place to invest in now.”

For the prestige market, it offers great value for money.

The Knight Frank report shows how US$1 million could buy 45 square metres of luxury property in Sydney in 2020, 87 square metres in Melbourne, 102 square metres in Perth and 109 square metres in Brisbane.  

Shayne Harris, Knight Frank’s national head of residential, says “the pandemic forced many to retreat in the comfort of their homes for the best part of 2020, so it’s not surprising prime property is becoming increasingly more attractive in destinations known for their lifestyles”.

Already, first-home buyers are out in force in Brisbane, but the next stage is seeing investors rush in, believes David Notley, the Brisbane director of valuers Herron Todd White. 

“A lot of house-and-land packages are being constructed to stimulate the first-home-buyer market,” he says.

“Once that’s finished, we’ll start to see the investors come back in. That’ll be the next wave.”

As more people learn about the big upswings in capital growth forecast for 2021 and 2022 in Brisbane, that will encourage the investors even more, predicts Jason Adcock of Adcock Prestige.

“While they’re looking at 10 per cent growth this year, they’re saying there could be an additional 10 per cent in 2022 – as against 7-8 per cent for Sydney and Melbourne,” he says.

“And Brisbane is a real value equation. We have people from Sydney and Melbourne coming up here in droves, in search of affordability and lifestyle, so Brisbane will be the go-to city for capital growth over the next two or three years.”