Brisbane now strongest housing market in Australia: PropTrack

Brisbane has bucked a nationwide 0.11 per cent fall in home prices in May to emerge as the country’s strongest real estate market, notching a 26 per cent rise in the past year.

Brisbane has logged a rise in dwelling values of 26 per cent in the year to May, the latest PropTrack Home Value Index found. Picture: NIGEL HALLETT

Wide falls across southern capitals and interest rates rises have failed to dampen housing prices in the significantly more affordable Brisbane market, which grew 26 per cent in the past year, according to the latest PropTrack Home Value Index – out Wednesday.

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Brisbane home price growth Year to May 2022 across ABS statistical area level 4 regions. Source: PropTrack Home Value Index.

PropTrack economist and report author Paul Ryan said Brisbane’s median price was $645,000 in May, which was expected to continue to rise even as others fell.

“Brisbane continues to be a star performing market,” Mr Ryan said. “Brisbane continues to outperform and that’s really the story of 2022.”

“It’s grown 26 per cent over the past year. At the end of 2021, the annual pace was 30 per cent, so there’s a bit of slowdown there, but nowhere near the slowdown of other capitals which have fallen in the last few months.”

PropTrack economist and Home Value Index report author Paul Ryan says Brisbane will continue to be a relative star performer.

Brisbane dwelling values were up 0.35 per cent in May, a strong showing compared to negative results in Sydney (-0.29 per cent), Melbourne (-0.27 per cent), Hobart (-0.05 per cent), and ACT (-0.12 per cent).

Other capitals that logged positive monthly growth were Adelaide (0.58 per cent), Perth (0.19 per cent) and Darwin (0.05 per cent).

Mr Ryan said Brisbane’s 26 per cent rise in the past year made it “the strongest of all housing markets across the country”.

“Brisbane looks set to continue to see strong conditions over the coming period” – relative to other capitals, that is.

Brisbane’s relative affordability compared to southern capitals continues to be its biggest drawcard. Picture: Brendan Radke

The first five months of 2022 saw dwelling values rise 5.4 per cent in Brisbane. Monthly growth rates have been steadily falling since the start of the year, going from 1.77 per cent in January to 1.48 per cent in February, 1.13 per cent in March, 0.66 per cent in April and now May at 0.35 per cent.

“It’s more a statement of relative performance,” Mr Ryan said. “We still see Brisbane and Adelaide continuing to do well because they’re still benefiting from preference shifts that we’re seeing. That’s likely to continue to influence Brisbane going forward.”

He said while there was no doubt Brisbane would slow as national growth slowed amid uncertainty over interest rates, “Brisbane and Adelaide are likely to float across the top”.

Brisbane: Monthly dwelling value growth

May 0.35%

April 0.66%

March 1.13%

February 1/48%

January 1.77%

(Source: PropTrack)

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Originally published as Brisbane now strongest housing market in Australia: PropTrack