Greater Brisbane house prices have risen at the fastest pace in almost 18 years and are set to surpass $800,000 over the next quarter as momentum continues to build.
Domain's latest house price report showed that...
- Brisbane house and unit prices are at new record highs.
- Brisbane house prices reached a new record high at $792,065, after leaping 10.7 per cent over the quarter and 25.7 per cent annually, the steepest increase in almost 18 years.
- For the first time since mid-2016 Brisbane unit prices are at a new record high of $416,033, after rising 2 per cent over the quarter and 3.5 per cent annually.
- Brisbane house prices have risen seven times faster than Brisbane units over the past year. This is the largest divergence on record, pushing the price gap between property types to an all-time high.
Commenting on the state of Brisbane property prices, Dr. Nicola Powell, Domain Chief of Research and Economics said explained...
"House prices have grown seven times faster than units over the past year, a divergence that has created a record price gap with houses edging closer to double the price of a unit.
The rapid price escalation will prove to be a financial hurdle for entry buyers.
This has resulted in the value of home loans for Queensland owner-occupier first home buyers dropping 25 per cent from the January 2021 high.
It will also be challenging to upgrade from a unit to a house, particularly against a backdrop of low wages growth.
At the same time, investment home loans have jumped to the highest value on record as Queensland investors chase capital growth and improved rental conditions.
The disparity between property performance, rising house prices, and investment activity will be helping to drive demand to units, elevating unit prices to a new record high for the first time since mid-2016.
This is a significant milestone given the heightened development of prior years."
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Buyer demand remains elevated and continues to run ahead of supply, depleting the total number of advertised homes for sale to a multi-year low.
Dr. Powell said:
Supply is 41 per cent below the five-year average for December, one the deepest declines of all the capital cities.
While housing affordability remains less challenging in Greater Brisbane compared to other cities, the volume of choice is problematic, making it highly competitive for buyers.
Inquiries from prospective buyers doubled over the December quarter compared to the same time the year prior and 26 per cent came from interstate.
Current demographic trends will continue to support housing demand with net internal migration into Greater Brisbane remaining elevated.
Rapidly rising house prices and the lure of a sellers’ market should entice homeowners, although it becomes hard for upgraders unable to secure a property, particularly when the market is moving rapidly.