According to CoreLogic, Brisbane’s house values have set a new benchmark not just for the fall in values but also the speed at which they have plunged.

However, the fall has yet to wipe away all the gains made when the Covid housing boom sent prices rocketing by 43 per cent on the CoreLogic home value index.

But Brisbane’s decline is ahead of the rest of the nation in falling values.

CoreLogic’s head of research Eliza Owen said a previous downturn in the Brisbane values of this size took 21 months, but the average was 14 months and ranged in size from -2.9 per cent to -10.8 per cent.

Owen said Brisbane was adjusting to a sharp increase in borrowing costs created by the hike in mortgage interest rates.

She said the median dwelling price in the city was now $707,658, up from $506,553 at the start of the pandemic, so entering the market has become a lot more expensive, but there is still a large affordability gap that could mean Victorians still see an economic advantage in heading north.

Owen said the median value in Melbourne was about $120,000 higher than Brisbane.

“This could encourage ongoing housing demand from those willing to migrate to the state or own an interstate investment,” she said.

The most recent data (June quarter, 2022) showed migration to Queensland was running 63 per cent above the decade average.

Rent values also jumped 13 per cent in 2022 which backed up claims of a housing shortage and there was now a low volume of selling. CoreLogic said the marketable housing stock was 40 per cent below the five-year average.

“While Brisbane property values are likely to fall further in 2023, it is possible the rate of decline will continue to slow over coming months,” Owen said.