The forecast follows a strong December in the real estate market with Ray White recording $4 billion in unconditional sales in the month in Australia. Almost $1 billion of that was in Queensland.

Morgans Stockbroking economist Michael Knox said the recovery in house prices was healthy.

“It has years to run as full-time employment recovers over the next few years with the coming business cycle,’’ he said.

The likelihood of interest rates rising was also low with Knox believing that the Reserve Bank would struggle to achieve its inflation target until unemployment was below 5 per cent.

“It will take years to achieve that level of unemployment. It is very unlikely that inflation is going to be a problem during this period. Our view is that full employment in the Australian economy is at 4.5 per cent.

“We think it’ll take not less than four years for growth to get unemployment down to that level.’’

Ray White managing director Dan White said its December total sales of $6 billion were up 60 per cent on the same time in 2019.

“In Australia alone, we recorded almost $4 billion in sales, up 50 per cent, with a record result in Victoria to cap off an incredible recovery given extended lockdowns across that state. New Zealand recorded its sixth consecutive record month, with $1.9 billion in sales which was 87 per cent higher than last year

The Real Estate Institute of Queensland’s vacancy data for the December quarter showed Brisbane’s inner city rental market was recovering and was now “the only healthy rental market in Queensland”.

Rental vacancies were now at 3.3 per cent, down from 5 per cent previously.

Beyond Brisbane’s CBD, rental vacancies around the city’s middle ring remain extremely tight, with a quarterly rate of 1.6 per cent including Hawthorne (1.4 per cent), New Farm (1.9 per cent), Paddington (2.1 per cent) and St Lucia (1.7 per cent).

Further out into Brisbane’s outer ring and vacancies are even tighter, recording a quarterly rate of 1.3 per cent.