Brisbane home prices hit new high following staggering growth
Brisbane property prices are bucking national trends, hitting a record high despite home prices around the country remaining relatively flat.
Property
Don't miss out on the headlines from Property. Followed categories will be added to My News.
Brisbane property prices have hit a record high despite national home prices remaining relatively flat.
PropTrack’s Home Price Index, released today, revealed Brisbane’s median value jumped 0.17 per cent last month to $794,000, while combined capital city prices lifted 0.02 per cent.
It follows a staggering 10.71 per cent increase in property prices in the Sunshine State capital over the past 12 months.
Brisbane was one of only three capital city markets — alongside Hobart (0.09%) and Perth (0.5%) — to record a rise in January.
The PropTrack report revealed strong demand and a housing shortage outweighed the impact of 13 cash rate hikes throughout 2022/23.
Brisbane has been one of the strongest-performing markets since the pandemic, with prices up 58 per cent since March, 2020.
MORE NEWS: 33-year-old worth $10m shares top tip to retire rich
No-one swiping right on Tinder co-founder’s marble mansion
Next chapter for cafe at Currumbin rock pools
Ipswich was southeast Queensland’s strongest region with an average property priced at $627,000 — up 13.03 per cent over 12 months.
The Logan – Beaudesert region recorded a 12.9 per cent annual jump to $681,000 while prices in South Brisbane hit $1.028m, up 11.69 per cent.
North Brisbane came in with a median of $859,000, up 10.4 per cent over 12 months.
Regional Queensland was the only regional market to see a decline in prices in January, falling 0.2 per cent from its peak to $640,000.
However, prices in regional Queensland were still up 7.56 per cent year-on-year and a staggering 60 per cent above pre-pandemic levels in March 2020, making it the strongest performing market since the pandemic.
PropTrack senior economist Angus Moore said he expected price growth across Brisbane, but not to the scale it was in 2023.
“Strained affordability – which sits at its worst level in at least 30 years – is likely weighing on home prices,” Mr Moore said.
“Nonetheless, we expect prices in 2024 will still grow, albeit at a slower pace than in 2023.
“A more stable interest rate environment, coupled with ongoing population growth and a low level of new building activity, will support home price growth this year.”
Mr Moore predicted a more moderate 3-6 per cent jump this year for Brisbane home prices.
He said he was surprised to see a drop in prices for regional Queensland but predicted the tables to turn again.
“I would still expect regional Queensland to be a fairly popular market as it has been so for more than four years,” Mr Moore said.
The Australian Bureau of Statistics revealed the Consumer Price Index indicator rose 4.1 per cent in the 12 months to December, down from 5.4 per cent in the September quarter.
The result was down from the peak of 7.8 per cent in December, 2022.
It was the lowest reading since 3.5 per cent in the 2021 December quarter.
Zippy Financial director Louisa Sanghera said borrowers had cut back on spending as much as possible to manage higher mortgage repayments.
“Borrowers had to cope with the most rapid rate of interest rate increases on record as the Reserve Bank pumped up repayments, almost in a frenzy, without giving mortgage-holders the benefit of allowing much time to pass between each increase,”
Ms Sanghera said.
“Rate reductions cannot come soon enough for many mortgage holders, with many holding on by the skin of their teeth at the moment.”