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Auction bonanza: Brisbane house prices defying gravity but inner city starts to wobble

Brisbane house prices are continuing to climb as the city heads into a weekend with the highest number of auctions since December, but the inner city is starting to show signs of weakness.

 

May 27, 2022, updated May 27, 2022
Real estate markets have surged
(image: realestate.com)

Real estate markets have surged (image: realestate.com)

Brisbane is expected to have 260 auctions this weekend, according to CoreLogic. This is well below Melbourne’s 1487 and Sydney’s 1233 but those cities have traditionally had more auctions than sales.

“This marks Brisbane’s busiest auction week since mid December 2021 when 354 homes were auctioned across the city.” CoreLogic said.

Brisbane’s clearance rate from auctions was 54 per cent last weekend compared with 58 per cent in Sydney and 62 per cent in Melbourne. The Sunshine Coast has a stronger 65 per cent and the Gold Coast is weaker at 41 per cent.

For the combined capitals this weekend is expected to be the busiest since the pre-Easter spike and the third busiest this year, mostly because the uncertainty of the election is now out of the way.

Brisbane’s house prices have climbed 0.7 per cent so far in May but seem to be flattening. Sydney and Melbourne have declined.

CoreLogic’s Tim Lawless said the upper quartile section of the southern capital city markets was softening but the exception was Brisbane.

“The city as a whole remains in an upswing stage with values up 29.8 per cent for the year to April.

“However, among the growth are sectors of the market which haven’t performed as well, such as the high-density, inner ring suburbs, including South Brisbane and West End, where slight falls in values were recorded in the last three months.”

The more expensive end of the market was also likely to feel more pressure as interest rates increase. The NAB and Westpac today increased their fixed rate loans, but there are still reduced variable rates as banks try to lure new customers ahead of increases.

The strength was also coming out the regional market. The growth rate in Australia’s 25 largest non-capital city regions slowed from a peak of 6.6 per cent in April last year to 4.7 per cent in the three months to April this year.

 

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