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Brisbane home prices lift again as buyers get sense of urgency

Business

Brisbane’s housing market has cracked double-digit growth for the past 12 months, rising 2 per cent in May and 10.6 per cent for the past year, according to CoreLogic.

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Nationally, growth for May was slightly higher (2.2 per cent) than in Queensland.

The national rise in May was a stronger result compared with April (1.8 per cent), but weaker than the 32-year high recorded in March when values surged 2.8 per cent.

Brisbane’s median home value was $574,572, well behind Sydney $970,000, Canberra’s $746,000 and Melbourne’s $740,000.

CoreLogic’s research director Tim Lawless said the growth was broad based.

Of the 334 SA3 sub-regions analysed by CoreLogic, 97 per cent recorded a lift in housing values over the past three months.

“Such a synchronised upswing is an absolute rarity across Australia’s diverse array of housing markets,” Lawless said.

For the second time in three months, growth conditions in capital city home values outpaced the regional markets. The combined capital city index rose 2.3 per cent in May compared with a 2 per cent rise across the combined regional areas.

Lawless said improving economic conditions and low interest rates were driving the rise along with below average supply.

Those factors were creating a sense of urgency among buyers.

“Despite the consistently strong headline results, the underlying trends have shifted over the past year,” Lawless said.

“The most expensive end of the market is now driving the highest rate of price appreciation across most of the capital cities, whereas early in the growth cycle it was the most affordable end of the market that was the strongest.

“From a geographic perspective, it was the smaller capital cities that led the housing market out of the COVID slump, but now Sydney has risen through the ranks to record the largest capital gain over the past three months with values up 9.3 per cent.”

Although housing values are now rising the fastest once again in Sydney, at least in trend terms, the annual growth rate is generally higher across the smaller capitals, as well as regional New South Wales and regional Tasmania.

Darwin cracked the 20 per cent annual growth barrier in May, the strongest annual gain on record.

Housing values across regional New South Wales are up 18.6 per cent while in regional Tasmania values were 18.1 per cent higher.

 

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