Sunday, March 15, 2015

Brisbane the laggard, says Macquarie

"Brisbane is still very much the laggard for this cycle given the sluggish domestic economy, with periodic price falls still common particularly for the Brisbane unit market," Macquarie's latest report noted.
It was in part because Queensland continued to show population growth moderation as the recent mining boom subsided.
The lagging occurs even as prices emerge back into recovery and should exhibit strong price growth into 2015, it noted.
In my view, another big reason for zero growth in Brisbane is income growth has been negligible, and other costs (especially food and entertainment) have increased faster than salaries.  As a result, rents in Brisbane have basically been flat for two to three years.

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