Brisbane house prices have soared to record heights after a steady 12 months of growth and a sizzling summer of sales, with the median price rising to an unprecedented $738,000.
The latest Domain House Price Report, released Thursday, revealed median prices in Brisbane LGA rose by 2.2 per cent over the December quarter, with the pandemic-inspired trend towards more space and a backyard fuelling the spike.
Over the entire year of 2020, house prices rose an impressive 4.7 per cent. Brisbane’s
median house price in December 2019 was $705,000. Now $738,000, it sets a record for the city’s median price.
Domain senior research analyst Nicola Powell said the surge was also testament to the sheer pulling power of a city that had become a magnet for southern buyers seeking better bang for their property buck and a balmy climate.
“Interest rates are also extremely low and that cheap credit is a big lure for some buyers. This really does heighten activity and with interest rates expected to stay low I’m expecting the market activity to remain like this,” Dr Powell said.
“I sold 10 Bernhard Street, Paddington, for former Brisbane Broncos head coach Anthony Seibold in October last year for $2.3 million, in April 2019 it sold for $1.9 million,” Mr Jordan said.
“I also sold 100 James Street, New Farm, on November 13 for $2.91 million and it last sold in September 2018 for $2.4 million.
“Both of those examples are of homes that sold within about two years or less and they both had 20 per cent price increases with neither of them undergoing any major changes.
“On top of that I think the last quarter of 2020 was the largest migration into the Brisbane market we’ve seen in terms of inquiry and buying.”
While inner-Brisbane house prices clocked great quarterly growth during December, Mr Jordan said larger homes in outer suburbs were still hot property, with suburb price records smashed in a handful of the city’s hottest lifestyle spots.
“For example, in Chelmer the suburb price record was just broken with 47 Longman Terrace, which sold for $8 million [through Dixon Estate Agents],” Mr Jordan said.
Ray White New Farm agent Christine Rudolph said while interstate and overseas migration to the Queensland capital had fuelled a sky high summer of sales on her end, downsizers were leading the charge within the inner-city’s piping hot market.
“In the past quarter I’ve noticed a shift with the empty nester demographic who are now looking to downsize into house in the inner city as opposed to a unit,” Ms Rudolph said.
“Three of my $2 million-plus sales in the past quarter were all to buyers in the 60-plus (age) bracket and they set a preference for a contemporary low maintenance house in the inner city. They are spending more time at home [due to covid] while also being retired so they still wanted the benefit of the garden and the separation of space during a lockdown. Covid has definitely changed people’s requirements.”
Ms Rudolph said one hot spot for lifestyle buyers was Yeronga, where she clocked a price record for a 607-square-metre dry lot at 39 Ormonde Street in December last year.