Thursday 29 April 2021

Brisbane house prices hit record-breaking highs

Brisbane house prices have soared to record heights for the seventh consecutive quarter, with five blue-chip pockets now topping the $1 million median mark.

According to the latest Domain House Price Report, greater Brisbane house prices shot up by 1.7 per cent price over the March quarter to an unprecedented $632,999, with the average home in the capital’s inner ring – as well as Indooroopilly and Sherwood – now likely to set you back more than a $1 million.

Those key hot spots included Brisbane inner city, inner east, inner west and the inner north – where house prices skyrocketed by 13 per cent over the past year to $1.2 million, 13.2 per cent to $1.053 million, 10.4 per cent to $1.17 million and 13.1 per cent to $1.1 million, respectively.

Sherwood and Indooroopilly were the only suburbs outside the inner-city sanctum to reach seven figures after a 5.8 per cent price rise over the same period placed houses in the combined area at a hefty $1.035 million.

Property punters have put the ongoing growth spurt down to cheap credit, low stock levels and rising house rents, while citing skyrocketing interstate migration as a key driver with reports out-of-state home hunters now make up a whopping 50 per cent of buyers in some pockets.

While it’s a perfect storm that’s lead to historically high house prices, Domain senior research analyst Nicola Powell said, for Sydney and Melbourne buyers, the sunshine state capital was still seen as a haven for bargain abodes.

“[The current house price] is 6.2 per cent higher than the same time last year … but [despite that growth] Brisbane is still affordable compared to other capitals … and buyers moving from Sydney and Melbourne will have deeper pockets so I think the fundamentals are there for continued price growth,” Dr Powell said.

Top house prices

Region Mar-21 Mar-20 Mar-16 YoY
Caboolture Hinterland $475,000 $405,000 $370,000 17.3%
Brisbane Inner – East $1,053,000 $930,000 $795,000 13.2%
Brisbane Inner – North $1,100,000 $972,500 $830,000 13.1%
Brisbane Inner $1,200,000 $1,061,500 $883,750 13.0%
Carindale $890,000 $790,000 $697,000 12.7%
Redcliffe $540,000 $485,000 $427,250 11.3%
Sandgate $569,000 $515,000 $451,000 10.5%
Brisbane Inner – West $1,170,000 $1,060,000 $850,000 10.4%
The Hills District $685,585 $621,750 $560,000 10.3%
Wynnum – Manly $700,000 $640,000 $570,000 9.4%
North Lakes $500,000 $460,000 $420,000 8.7%
Holland Park – Yeronga $900,000 $828,750 $699,000 8.6%
The Gap – Enoggera $731,900 $675,000 $590,000 8.4%
Nathan $750,000 $693,500 $615,000 8.1%
Kenmore – Brookfield – Moggill $866,000 $810,813 $710,000 6.8%
Bribie – Beachmere $548,500 $513,500 $415,000 6.8%
Jimboomba $561,000 $527,500 $470,750 6.4%
Sherwood – Indooroopilly $1,035,000 $978,000 $806,500 5.8%

But while the latest data will hit some home hunters with shallow pockets where it hurts, Dr Powell said, aspects of the market were still moving at a snail’s pace.

“Brisbane still has a two-speed market, with unit prices falling over the quarter and year, down 0.5 per cent and 1.1 per cent lower respectively. Affordability has improved for buyers who are paying a multi-year low for a unit at $398,612.

“The divergence of house and unit prices has made the value gap between purchasing a house and unit the largest on record.”

Despite the lag, unit prices in some sectors soared, with Redcliffe leading the charge after prices rose a whopping 23.4 per cent over the past year to $480,000.

It’s a surge that Ray White Redcliffe business owner Andrew Campbell said came off the back of incredibly tight house stock, sparking the agency to post record month after record month since January this year.

“A lot of our stock now is units and when we have houses, they are sold at the first open home,” Mr Campbell said. “A lot of people are now downsizing … and we are seeing some of our highest unit sales in three months.

“We sold a unit at 501/2 Prince Edward Parade, Redcliffe, for $1.345 million about six weeks ago – which was a great result – so while it’s hard to say what units will do as they always tend to lag, I think we’ll see some significant growth.

“There’s definitely still room on the peninsula as a whole because it has been so undervalued for so long.”

While interstate buyers have helped fuel the growth, Mr Campbell said, most home hunters were local – and their appetite was insatiable.

Top unit prices

SA3 Mar-21 Mar-20 Mar-16 YoY
Redcliffe $480,000 $389,000 $380,000 23.4%
Brisbane Inner – West $480,000 $445,000 $515,000 7.9%
Bald Hills – Everton Park $483,000 $450,000 $430,000 7.3%
Cleveland – Stradbroke $489,500 $458,250 $455,000 6.8%
Chermside $409,500 $385,000 $455,000 6.4%
Narangba – Burpengary $292,000 $275,000 $252,500 6.2%
Capalaba $412,500 $390,000 $382,000 5.8%
Carindale $509,300 $482,000 $470,000 5.7%
Brisbane Inner – North $480,000 $465,000 $492,000 3.2%
Bribie – Beachmere $371,250 $360,500 $333,000 3.0%

“In March we clocked 21 home transactions, which was $14.9 million in sales. This time last year was $3.3 million from six but that was pandemic mode. The year before [at the same time] we did 15 sales totalling $7 million and that was our benchmark,” he said.

“The number of buyers has increased dramatically by 20 and 30 per cent.”

Ray White New Farm agent Christine Rudolph said in the city’s inner pockets such as Paddington, Teneriffe/New Farm, Hawthorne and out to Indooroopilly, the mass interstate migration had reached record highs, sparking a severe rent shortage that was further fuelling house prices.

“We are continuing to see a massive drive of interstate and expat inquiry … in the prestige market 50 per cent of our sales are driven by local buyers and the other 50 per cent are from interstate and overseas,” Ms Rudolph said.

“In New Farm a high degree of our traffic is coming from the Sydney eastern suburbs and they say they can’t believe the value and how affordable it is here.”

In Sydney, house prices have soared to an unprecedented $1.3 million median, the Domain House Price Report showed, while Melbourne’s unit and house prices were both at record highs.

But while sun-seeking southerners forking out the big bucks were sparking major growth, Ms Rudolph said, the ongoing lack of stock, particularly at the prestige end, and COVID-fuelled property trends had further shot up house medians.

“We’ve definitely seen a change in trends since COVID – people have had more opportunity to spend time in their homes … and people are craving space and they are craving a view and beautiful gardens,” she said.

“It’s spurring the price growth and there’s also a degree of ‘FOMO’ at the moment because a lot of the local buyers are mindful of this continued interstate migration.”

Place Estate Agents Bulimba joint managing director Paul Curtain said in some prime pockets of the city’s inner east, price growth had averaged 12 per cent in the past quarter alone, with the traditionally lower end of the market nothing short of booming.

“An average house in somewhere like Camp Hill with perhaps three bedrooms and one bathroom on a 405-square-metre block might have sold for low $700,000s about 12 months ago … but now [homes like these] are selling for over $900,000,” Mr Curtain said.

He said interstate buyers were also making up about 50 per cent of buyers in his patch and said the cosmopolitan vibes and abundance of cafes and top eateries made the region particularly appealing to migrants from Melbourne, Sydney and overseas – especially for those who could snap up a house for 25 per cent less than in suburbs such as New Farm.

Across the city, the Domain data further revealed the Brisbane north region – which spans Stafford to Brighton – was one of the capital’s top performing regions after house prices rose 4.9 per cent over the past quarter to $670,094 – up almost 10 per cent year on year.


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