Get set – Brisbane ready to take off
Brisbane house prices are on the rise, defying the national trend of the biggest slump in property prices in the last decade. The sunshine state capital was the only major city to record a rise in home values last month, with experts predicting there’s more good news on the way.
The CoreLogic November hedonic home value index released last week confirms Brisbane home values grew 0.1 per cent during the month, while national dwelling values fell 0.7 per cent — the index’s weakest performance since December 2008.
The biggest falls were in Sydney, down 1.4 per cent in November, and Melbourne (-1 per cent). Overall, home values nationally are down 4.2 per cent since peaking in October 2017.
According to CoreLogic head of research Tim Lawless, Brisbane is proving more resilient to a downturn because its home prices had never climbed as high and its recent growth was at a more sustainable level.
Brisbane’s more affordable prices relative to Sydney and Melbourne were helping prop up that market and it was arguably the country’s most stable market, according to Mr Lawless. Better affordability also meant Brisbane was not as exposed to the current lending climate, where banks were becoming increasingly restrictive in giving out new loans.
“There has been strong migration into southeast Queensland, especially from NSW,” Mr Lawless said.
“Housing is much more affordable than in Sydney and Melbourne and that’s increasing demand for housing.”
All the indicators point to prices heading north in Brisbane, according to Place Advisory residential research director Lachlan Walker.
“Population growth, thanks to interstate migration, is the highest it’s been in a decade,” Mr Walker said.
“Infrastructure spend is also the highest in recent history — over 130 major projects totalling upwards of $55 billion.”
Mr Walker said those factors, coupled with high employment, better affordability than the southern capitals, low vacancy rates and dwindling supply were all in Brisbane’s favour.
Yours in success,