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Brisbane boom: Housing price growth set to outperform capitals

Brisbane housing prices grew almost three times as much as expected this past year, with prices set to rise further amid fresh predictions it will outperform all other Australian capitals in 2022.

Brisbane is expected to outperform all Australian capital cities in housing price growth in 2022.
Brisbane is expected to outperform all Australian capital cities in housing price growth in 2022.

Brisbane housing prices grew almost three times as much as expected this past year, with prices set to rise further amid fresh predictions it will outperform all other Australian capitals in 2022.

Christopher’s Housing Boom & Bust Report, out Thursday, found Brisbane surpassed expectations of a dwelling price rise between 4 to 8 per cent in 2021 to instead notch a massive 22 per cent jump off rampaging demand.

Report author Louis Christopher of SQM Research said “Brisbane’s North rose by 24 per cent and was a hot spot. But it was inner Brisbane houses which was the primary hotspot, with house prices rising by over 28 per cent for the year.

Rents across the Qld capital also jumped during the period, rising 9 per cent.

INSIDE THE BRISBANE BOOM

Housing price rises

2021 prediction: 4 to 8 per cent

2021 reality: 22 per cent

2022 prediction: 8 to 14 per cent

Biggest 2021 price surge:

Northside 24 per cent

Inner city houses: 28 per cent

Where to watch

Brisbane east coast – Wynnum through to Redland Bay

Southside – Woodridge, Logan (most affordable houses, some under $400,000)

(Source: Christopher’s Housing Boom & Bust report)

The Brisbane forecast for 2022 was that prices would continue to rise by between 8 and 14 per cent, Mr Christopher said – a scenario that held fast even if the official interest rate rose to 0.25 to 0.5 per cent in the second half of the year.

“We expect the recent surge on inner-city house prices to continue into 2022. I would also add in Brisbane eastern Coast (Wynnum through to Redland Bay) for those that have the budget,” he said. “And for those looking at the most affordable end, you can still pick up houses south of Brisbane and on the train line (Woodridge, Logan) for under $400,000.”

He said even if APRA cracked down on lending, Brisbane would escape the fallout given housing prices were still better value than Sydney and Melbourne.

“In 2017/18 it was Sydney and Melbourne that had the price corrections. Brisbane flatlined,” he said. “Right now the leading indicators such as lower listings, surging rents and higher auction clearance rates suggest more is to come at least over the next few months”

Peter and Christine Taylor have their stunning sky home in New Farm’s Aquila development set to go under the hammer December 11. Picture: Liam Kidston
Peter and Christine Taylor have their stunning sky home in New Farm’s Aquila development set to go under the hammer December 11. Picture: Liam Kidston

Peter and Christine Taylor are among thousands of Queenslanders who’ve taken their homes to market in the hottest period on record, with their stunning sky home in New Farm’s Aquila development set to go under the hammer December 11. The couple had paid $5.4m a decade ago for the three bedroom full floor stunner off the plan, and are set to see strong returns off the lifestyle property.

“It’s a unique site and the aspect is just breathtaking. When you’re in the living room, you feel like you’re floating over the river. We’ve had lots of great parties on the balcony and in the living room.”

Top 5 Brisbane boom suburbs:

4500 Brendale

4300 Brookwater

4017 Brighton

4053 Stafford

4509 North Lakes

(Source: Christopher’s Housing Boom & Bust report)

Mr Christopher said the next decade would be a golden one for Brisbane, with multiple drivers of positive energy around the Olympics and Qld’s limited exposure to Covid-19 lockdowns, with a surge in interstate migration and buyers.

“The win of the 2032 Brisbane Olympic Games is clearly a positive for the city economy and that is likely to help with the housing market over the next ten years. So we can expect outperformance of the Brisbane housing market compared with other Australian cities over this time.”

“It will also benefit over the short term from interstate migration inflows from Sydney and especially Melbourne, notwithstanding any future state border closures.”

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Original URL: https://www.couriermail.com.au/property/brisbane-boom-housing-price-growth-set-to-outperform-capitals/news-story/595c46b2c480373d1d602f592fc9ef89