House price growth drops off across Australia
It’s unlikely we’ll see record price growth again any time soon. Video by Alistair Walsh.
The Brisbane housing market has failed to live up to expectations it might follow in the impressive footprints of Sydney and Melbourne, as prices flatlined over the September quarter.
The median house price rose by just 0.8 per cent to $497,143, contributing to an annual growth of 3.6 per cent. By comparison, Sydney and Melbourne medians skyrocketed 21.7 per cent and 15.6 per cent respectively.
The Brisbane housing market has failed to live up to expectations it might follow in the impressive footprints of Sydney and Melbourne, as prices flatlined over the September quarter.
The median house price rose by just 0.8 per cent to $497,143, contributing to an annual growth of 3.6 per cent. By comparison, Sydney and Melbourne medians skyrocketed 21.7 per cent and 15.6 per cent respectively.
Brisbane’s median house price growth over five years
“Brisbane has been the disappointing housing market this year – there were strong expectations it would maybe track just below Melbourne,” said Domain senior economist Andrew Wilson.
“It hasn’t really found any momentum. The interest rate cuts that electrified the Sydney and Melbourne markets just did not have a strong impact in Brisbane.”
Dr Wilson said like other resource states, Queensland was exposed to tough economic factors and an employment shakeout from the mining boom, which left local market conditions subdued and shaky.
He said the budget end of the market was failing to ignite, while the mid to higher priced houses around the inner suburbs – which had been pushing the market along – had gone on pause over the quarter.
Brisbane unit prices continued to be affected by oversupply in the quarter, falling by 0.6 per cent to a median of $362,737 – a 5.6 per cent drop year-on-year.
Dr Wilson said a burgeoning inner-city culture and interest in apartment living would eventually catch demand up to supply.
“A longer term investment certainly still has appeal,” he said.
