Greater Brisbane has provided owner-occupiers and investors consistent results. While other cities plunged into decline, Brisbane houses produced steady price growth over the past seven years. House prices rose 1.3 percent over the final quarter of the year, the biggest quarterly movement in two years, pushing values to a new record high of $577,664.
Units continue to underperform, with prices softening annually over the past two-and-a-half years. Prices are now 8.7 percent below the mid-2016 peak. Rising supply has been at the core as an increasing number of developments flooded the market. At the moment, the unit market remains firmly a buyers market, with the opportunity to purchase at an almost six-year low. However, as unit commencements plummet and construction continues to fall from the late 2016 peak, excess supply will eventually be absorbed by the rising demand.
The state government’s infrastructure planning strategy will provide Brisbane an economic boost over a number of years. It will help to drive job creation and subsequent population growth, which means the demand for housing will continue. Brisbane has been benefiting from a rebound in owner-occupiers utilizing lower mortgage rates, however, investors are likely to continue to be drawn to Brisbane by affordability and higher rental yields compared to other east coast cities, as well as the potential to capitalize on areas that will benefit from improved connectivity.
Median Price
December 2019 QoQ Change
HOUSES
1.3%
Median Price $577,664
UNITS
-3.4%
Median Price $377,549
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