Record high: Brisbane southside median home price now $1m

Brisbane home prices have defied the November rate rise to climb to new record highs, gaining almost nine per cent in 12 months.

BRISBANE home prices have defied the November interest rate rise to climb to new record highs, gaining almost nine per cent over the past 12 months.

The latest PropTrack Home Price Index, released today, reveals the city’s median home price gained another 0.2 per cent last month to hit a price peak of $775,000 — closing in further on Melbourne’s $807,000 median.

Brisbane home prices rose another 0.2 per cent in November, according to PropTrack. Picture: John Gass.

The report found the city’s southside has boomed more than anywhere else in Greater Brisbane in the past year, with home prices there jumping nearly 12 per cent to reach a median of just over $1 million.

Unit prices outperformed house prices during 2023, with the median unit price increasing 9.2 per cent to $580,000 and the median house price rising 8.8 per cent to $868,000.

Unit price growth in Brisbane has outperformed house price growth in the past year. Picture: John Gass.

Compared to before the pandemic in March 2020, home prices in Brisbane are a whopping 55 per cent higher.

PropTrack senior economist Eleanor Creagh said the November increase marked the 11th consecutive month of home price gains for Brisbane.

“Home prices in Brisbane have risen at a fast pace this year, regaining all of 2022’s price falls,” Ms Creagh said.

PropTrack senior economist Eleanor Creagh.

Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella, said unit price growth had been particularly strong in recent months.

“Unit price growth seems to be awakening from a long slumber, as people adjust their expectations and use them as stepping stones into the housing market,” Ms Mercorella said.

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“It’s not surprising that units are gaining popularity due to their relatively affordable price point, when budget conscious buyers are wary of rising interest rates and cost of living.

“When once upon a time you could find more affordable freestanding houses to buy around the half-a-million dollar-mark with a reasonable commute to the city, we’re now hearing that first home buyers are turning to apartments and units instead.”

REIQ CEO Antonia Mercorella.

Nationally, all capital cities except Darwin recorded price rises in November, continuing the trend of home prices proving resilient to the impact of higher interest rates this year.

“Strong housing demand, buoyed by record net overseas migration, tight rental markets, low

unemployment and home equity gains, has worked alongside limited housing stock to offset the impacts of higher interest rates this year,” Ms Creagh said.

“Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.”

Ms Creagh said the pace of growth slowed in November, but prices were likely to continue to rise.

Home prices rose in every capital city except Darwin in November, according to PropTrack. Picture: Monique Harmer.

“Looking ahead, price growth is expected to continue as the positive tailwinds for housing demand and a slowdown in the completion of new homes counter the sharp deterioration in affordability and slowing economy. However, prices are likely to lift at a slower pace than they have across 2023.”

In regional Queensland, home prices also lifted to a new peak — up 0.35 per cent in November.

Interest rate rises have done little to impact home prices in the past year. Picture: John Gass.

This brings regional prices up 7.36 per cent compared to November last year and 59 per cent above pre-pandemic levels, making regional Queensland the strongest performing market in the country since the pandemic.

It looks like homeowners will be spared another rate rise in December after monthly inflation figures came in better than expected this week.