Up, up and away: Brisbane property prices surge to record levels
The losses on Brisbane’s real estate in 2022 have been wiped out by a resurgent market that lifted prices by 10.2 per cent for the first 10 months of this year, according to CoreLogic.
Brisbane house prices have recovered all of the losses recorded in 2022 (file photo)
The research company said Brisbane housing values posted a nominal recovery in October, erasing the previous -8.9 per cent drop in values to reach a new record high.
Perth and Adelaide are also at new record highs after recovering from shallow downturns earlier this year. The remaining capital cities have some way to go, with Sydney values -2.2 per cent below their January 2022 peak and Melbourne values -3.7 per cent below the March 2022 peak.
CoreLogic said while there had been increases, there was a clear slowdown in quarterly figures which it attributed to an increase in the number of houses coming on to the market and affordability.
“With an acceleration in the flow of new listings coming onto the market, it’s unlikely buyer demand will be able to keep pace as we move through spring amid high interest rates and low sentiment,” the company said.
There has also been expectations of another interest rate rise at the meeting of the Reserve Bank board next week following higher than expected inflation.
It has Brisbane’s median house price at $770,575, just behind Melbourne’s $778,000.
Brisbane prices were up 1.4 per cent for October and 3.8 per cent for the quarter.
In the regional markets, the combined regional index was up 0.7 per cent, which was slightly behind the capitals, CoreLogic’s Tim Lawless said.
“Similar to the trend in the capitals, regional Queensland, WA and SA are showing stronger conditions with each of these rest of state regions at record highs in October.”
Regional Queensland prices were up 5.6 per cent for the past 12 months.
However, the overall housing crisis was not improving with data released by the Australian Bureau of Statistics showing that nationally the number of dwelling approvals was nowhere near enough to meet demand.
SQM’s Louis Christopher said the data was ugly, showing approvals were down by more than 20 per cent year-on-year.
“Last month, just over 13,000 dwellings were approved. These approval numbers are putting us on track to complete about 135,000 dwellings for 2025 (and the) run rate required is 240,000 dwellings a year, each year to hit the Federal Government’s target of 1,200,000 completed dwellings over the next five years,” he said.
“At this rate, the target is very unlikely to be achieved.”
