The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - LAND LEASE DEVELOPMENT SUMMIT 10 DAYS TO GO
10 DAYS TO GO - LAND LEASE DEVELOPMENT SUMMIT
REGISTER NOWREGISTER
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
3
print
Print
Real EstateTed TabetFri 26 Aug 22

Brisbane House Prices Growth Begins to Slow

Brisbane Market Eases from "Sprint to Run"

Property prices continue to rise across Brisbane, albeit at a more modest pace, as rate rises, high inflation, poor affordability and increasing supply fuel steeper declines in house values across the country.

Brisbane house prices further escalated with the onset on Covid-19 when people placed a higher value on privacy with interstate migration, propelled by residents of Sydney and Melbourne moving to the Sunshine State for cheaper dwellings and a change in lifestyle.

Continuing the trend, median house prices rose by 3.6 per cent in the three months to June, while median unit prices inched up by 1.6 per cent, according to quarterly median sales results released by Queensland’s peak real estate body, REIQ. 

Real Estate Institute of Queensland chief executive Antonia Mercorella said despite the slowdown during the quarter, Brisbane’s annual growth rate rose 27.2 per cent year-on-year.

Mercorella said Brisbane’s growth over the June quarter, as Sydney and Melbourne reversed, had meant median house prices had now ticked over the million-dollar mark and units cracked half-a-million-dollar mark. 

Over the three months to June, Brisbane’s local government area median house price remained steady, experiencing a slight fluctuation to $1.07 million from $1.09 million.

“This quarter we’re still seeing healthy growth in most major markets, but at a more sustainable level, as Queensland’s property market appears to finally have caught up on the growth it was well overdue for,” Mercorella said.

“What this means on the ground is that the property buying frenzy has relaxed, allowing a slower, more considered approach from buyers which is evidenced by longer days on market.

“The rise of risky behaviours such as buying sight unseen, impossibly short settlement periods, and waiving cooling off periods are hopefully behind us now.”

House median sales—data as of June 2022 quarter

RegionSalesMedian (quarter)Quarter changeMedian (annual)Annual change
Greater Brisbane8035$766,0001.79%▲$722,00023.2%▲
Brisbane LGA2933$1,075,000-0.92%▼$1,005,00027.2%▲
Ipswich LGA1129$530,7504.0%▲$480,00024.0%▲
Logan LGA1314$610,0001.3%▲$565,00024.1%▲
Moreton Bay LGA1654$720,0002.7%▲$675,00028.6%▲
Redland LGA651$810,0001.2%▲$764,50029.0%▲

^Source: REIQ, Corelogic - June 2022

Unit median sales—data as of June 2022 quarter

RegionSalesMedian (quarter)Quarter changeMedian (annual)Annual change
Greater Brisbane3683$470,0002.6%▲$450,0008.4%▲
Brisbane LGA2675$500,0002.0%▲$480,0009.0%▲
Ipswich LGA139$326,0008.3%▲$300,00030.1%▲
Logan LGA292$330,0008.2%▲$290,00024.2%▲
Moreton Bay LGA451$410,0002.5%▲$387,00012.1%▲
Redland LGA108$485,0002.4%▲$455,00012.3%▲

^Source: REIQ, Corelogic - June 2022

Brisbane suburbs breaking the million-dollar-mark, based on sales in the quarter, included Mitchelton, Chermside West, Ferny Grove, and Everton Park, while Bulimba, on the southern banks of the Brisbane river, cracked the $2-million mark.

Mercorella said Brisbane’s property market remained resilient despite recent hits to hip pockets and borrowing constraints but was now showing signs of calming.

“Consecutive interest rate rises and inflation are seeing households tightening their belts” she said.

“However, this is against the backdrop of very low unemployment, pent up wage growth expectations, continued high interstate migration, an extremely tight rental market, and the return of international migration further boosting our state’s population.

“These are all factors that will buoy Brisbane property prices, and should give buyers confidence in investing.”

The changing market dynamics of supply and demand made it the busiest June quarter on record for Brisbane’s auction market, with a high volume of new listings over the three months to June.

The Corelogic home value index for July declined -1.3 per cent nationally, a third consecutive month of declines, as Brisbane also edged into negative growth territory for the first time since August 2020.

Over the most recent month, median values for dwelling values fell -0.8 per cent, driven by a -1.1 decline in house prices as the median value of units increased by 0.7 per cent.

Brisbane home prices are now forecast to rise slightly, by 1 per cent, this year ahead of a -12 per cent drop in 2023, according to ANZ economists.

ANZ is tipping house prices nationally to fall by between 15 and 20 per cent by the end of next year, in response to higher official interest rates and inflation, before starting to recover in 2024.

Inflation reached a 21-year high of 6.1 per cent in the three months to June, below the market consensus of 6.3 per cent. 

Underlying inflation, the Reserve Bank of Australia’s preferred measure, rose 1.5 per cent in April-June, and gained 4.9 per cent over the year, the highest rate since June 1991.

ResidentialAustraliaBrisbaneReal EstateSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
Tugun 365 Golden Four Drive DA render hero
Development

Midrise Tower Plans Pitched for Take-Off at Tugun

Phil Bartsch
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
The Sydney developer is pushing ahead with a project it picked up following the collapse of Dyldam in 2020....
LATEST
Tugun 365 Golden Four Drive DA render hero
Development

Midrise Tower Plans Pitched for Take-Off at Tugun

Phil Bartsch
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/brisbane-housing-market-slows-june-quarter-2022-reiq