Monday, January 27, 2020

Brisbane Apartments compared with other capital cities

In the AFR on 23 January 2020 (page 3), there is an article titled "Rebound Sends Property to Records".  However, reading carefully, this does not apply to Brisbane apartments.

The graph in the article, sourced from Domain, shows that Brisbane apartment prices have fallen over the past 3 years and are not at a record.  A Brisbane apartment costs the same today as in about 2013.

Moreover, Brisbane apartments are cheaper on average than Sydney, Melbourne, Canberra and Hobart.

Is there a structural problem in Brisbane?  What is holding back price growth in Brisbane?  Poor quality apartment developments?  Ineffective State and local government?  Lack of infrastructure in inner city areas?  No population growth?  Fewer tourists?

Is it that approximately 40% of the people working in Brisbane work for government or government owned corporations?

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