Queensland's real estate market is ready to roar, being forecast to beat every other state in Australia for capital gains over the next two years.
Queensland overtook Victoria as "the strongest state" in the National Australia Bank's third quarter Residential Property Survey. NAB Chief Economist Alan Oster told The Courier Mail Queensland was "doing wonderfully well".
Queensland's property market improved by 10 points in the third quarter of 2014 on the NAB's scale to +37, one point above Victoria's +36. Nationally house prices are expected to rise by an average of 2.1 per cent per year, with Queensland leading the pack on 2.9 per cent growth expected.
"Capital growth prospects over the next 12 months improved for houses at all price points below $1 million, with prospects assessed as 'good' in all price brackets," the NAB said about Queensland.
The Queensland market is primarily dominated by owner-occupiers and investors, with each group making up 34 per cent of a market, followed by foreign buyers at just under 17 per cent. The greatest interest in the market is in existing houses in the inner sections of cities, as well as central-city apartments.
The numbers are part of a wider trend where the outlook on house prices over the next 12 to 24 months improved across every state. However, this was countered by a tamping down of rental growth expectations, with an expected rise in rents across Australia of just 0.7 per cent, and in Queensland of 0.9 per cent.
The Block auctioneer and Ray White New Farm principal Haesley Cush told The Courier Mail that in the last four months Queensland had "begun to tick all the boxes across multiple segments".
"When you look at capital gains that are on offer, current interest rates and rate of return, you can see a positive gain," he said. "We're certainly seeing interstate and international buyers looking at the Queensland market and seeing its value."
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