Macquarie’s analysts blamed slowing population growth and an oversupply in apartments for what they predict will be a hard landing for the housing market, the Australian Financial Review reported.
But, REIQ CEO Antonia Mercorella was quick to release a statement asserting that any predictions of dramatic house price drops were nothing more than “crystal ball gazing”.
“Predictions of house prices dropping are arguably based on conditions in Sydney where the average house price is around $1 million,” the REIQ said. “In metropolitan Brisbane the median house price is $610,000.”
Ms Mercorella said Brisbane’s median house price had followed a trend of positive growth of around 2 per cent since the June quarter of 2013, and she expected that would continue for the September quarter.
“The reality is that the Queensland property market is increasing in value, in small, steady increments,” Ms Mercorella said.
“We are not seeing a boom and bust cycle here and it is clear that some observers are mistaking the Sydney and Melbourne markets as indicative of the rest of the country.”
Some economists have also refuted the likelihood of a price plunge affecting the southern capital cities. Read more on Domain.
