Brisbane Property Prices Top Nation
Brisbane is the only major Australian city to consistently record an increase in property prices over the past 12 months as markets in much of the country plunge.
New CoreLogic data reveals over the past week Brisbane properties inched upwards by 0.2 percent, narrowly beating Adelaide where houses remained stable, unchanged.
Over the year to date, homes in the Queensland capital have climbed by 0.5 percent making it the strongest performing major capital city.
The last time Brisbane led the country in all four property indicators – including week, month, year-to-date and 12 month – was in 2007.
In the country’s biggest property market in Sydney, property prices have fallen by 3.4 percent over the last 12 months and in Melbourne prices have plunged by 3.1 percent.
The only other capital cities to hold a candle to Brisbane’s stronghold on growth is Hobart and Canberra, which over the past year have seen 11.5 percent and 2.4 percent growth respectively.
Reasons for Brisbane’s dogged pursuit of property growth include a thriving local economy, large interstate migration and a relatively affordable entry price compared to Sydney and Melbourne.
In Brisbane, the median property value – which includes both apartments and free-standing houses – was $494,634.
That’s $369,135 cheaper than Sydney (median $863,769) and $214,934 cheaper than Melbounre (median $709,568).
Last year, CoreLogic directly analysed the relationship between the Sydney property market and Brisbane, finding that historically when Sydney falls Brisbane surges in growth.
“As the Sydney market slows there could be some upside for other housing markets where capital gains have been more sustainable and rental yields are higher,” wrote analyst Cameron Kusher.
“The trends presented here would generally suggest that Brisbane could be well-positioned for a pick-up in value growth as the Sydney housing market slows.
“Keep in mind though that there have been instances in the past where value growth has surged in Sydney and it hasn’t been followed by a surge in Brisbane, so a lift in Brisbane growth is no certainty.
“A significant gap in the cost of housing between the two cities was evident in both 1989 and 2002 and it also evident currently.”