CoreLogic says Brisbane and Adelaide lead nation in housing price rises at start of 2022

While home values around Australia may be ‘running out of steam’, Brisbane and Adelaide have started 2022 with a bang.

Brisbane and Adelaide have got the jump on the rest of Australia with a surge in home values over the holiday period

According to CoreLogic, Brisbane and Adelaide housing prices rose more than 2.3 per cent and 2.2 per cent respectively in the month ending January 9.

The rest of Australia edged higher, recording a 0.7 per cent rise in housing values over the same period.

CoreLogic research director Tim Lawless said housing market activity was typically quiet in late December through to January.

“However, based on the early readings so far, housing values are up across each of the capital cities over the past week. Similar to the monthly trend, Brisbane and Adelaide standout with the strongest conditions,” he said.

Over the past 12 months Sydney home values rose 25.8 per cent, Melbourne 15.3 per cent, Brisbane 28 per cent, Adelaide 23.7 per cent, Perth 12.5 per cent, and over the five capitals and average 21.3 per cent compared with the previous year.

Home values continue to surge with Brisbane and Adelaide, the standouts.

Australia recorded 9525 new listings over the past four weeks, which was generally higher than a year ago across most markets, apart from Melbourne, Adelaide and Hobart.

Brisbane stands out with the largest jump in new listings, with a 43.8 per cent jump in freshly advertised stock, suggesting homeowners are taking advantage of the strong selling conditions across southeast Queensland.

However, overall stock levels remain almost 29 per cent below the five-year average across Brisbane, reflecting an ongoing shortage of available supply.

JLL senior director research Leigh Warner said the Brisbane housing market was underpinned by interstate migration, which should continue in 2022.

“Anecdotedly there are plenty of stories of people from interstate buying homes in Brisbane sight unseen,” he said.

“Overall, I think a bit of steam will go out of the market overall but Brisbane’s ride will be longer with a bit more support with internal migration.”

There has been an increase in approvals for apartments and townhouses.

The latest Bureau of Statistics found that across Australia the total number of dwellings approved rose 3.6 per cent in seasonally adjusted terms in November, following a 13.6 per cent fall in October.

The rise in the number of dwellings approved was driven by an increase in approvals for apartments and townhouses, which rose 9.7 per cent, while private-sector houses continue to level off, up 1.4 per cent, following a 3.5 per cent rise in October.

While private-house approvals are no longer at record highs, the November result remains 25.8 per cent higher than the pre-pandemic level in November 2019, indicating ongoing strength in the detached housing market.

CommSec chief economist Craig James said the sector appeared to be “firing on all cylinders”.

“So there is a lot of building being done currently, as well as building that is expected to commence in the next few months,” he said,

“But, in terms of how quickly the work will be completed, it’s all about getting access to the trades.

“And cost pressures may serve to delay some projects. Still, home building will be adding to economic activity in 2022. The additional stock should also keep a cap on the price of new and existing properties.”