Brisbane housing market defies slowdown gripping Sydney and Melbourne

While the property market slows in Sydney and Melbourne, Brisbane’s is surging with home values recording their strongest monthly gain in nearly a decade.

Brisbane’s housing market continues to defy the slowdown gripping Sydney and Melbourne, with new figures showing the city’s home values recorded the strongest monthly gain in nearly a decade.

The latest CoreLogic home value index for November reveals prices in the Queensland capital rose another 2.9 per cent last month to $662,199 — the biggest increase of any capital city.

It is also leading the nation when it comes to quarterly home price, with values up 7.4 per cent, compared to only 4.3 per cent in Sydney and just 2.4 per cent in Melbourne.

Brisbane home values increased by another 2.9 per cent in November, the strongest montly gain in nearly a decade. Picture: Annette Dew

CoreLogic’s research director Tim Lawless said Brisbane and Adelaide were the only capital cities yet to experience a slowdown.

“Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from Covid lockdowns and a positive rate of interstate migration is fuelling housing demand,” Mr Lawless said.

“On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective.”

Different supply dynamics were also creating divergent trends across the nation, Mr Lawless said.

A bidder raises his paddle at an auction in the Brisbane suburb of Clayfield. Picture: Annette Dew.

In the four week period to November 28, total stock available for sale across Brisbane was 34 per cent lower than the five year average, showing demand is still outweighing supply.

BuyersBuyers co-founder Pete Wargent said the idea prices were going to decline in Brisbane “any time soon is wide of the mark”.

“We’ve seen many first-hand examples of popular homes in Brisbane selling with dozens of offers, and that’s a lot of disappointed prospective buyers going away disappointed,” Mr Wargent said.

“Interstate migration into Queensland recently hit the highest level in around 15 years, and it should be noted that houses and other family-suitable properties are experiencing strong demand across many areas of southeast Queensland.

“Recently there have been some calls for the Reserve Bank to increase the cash rate sooner than previously expected, markets looking for a potential increase of up to 1 per cent in 2022, but even in that scenario mortgage repayments would remain comfortable.”