New data from Domain’s State of the Market Report Autumn 2015 has described an encouraging year of growth in the Brisbane house pricing sector. The city’s median house price has risen nearly 6% over the past year in comparison to 5.1% over the course of 2013.
According to the report, Brisbane’s property market revival was late coming compared to most other capital city housing markets, which were driven by the sharp interest rate cuts across 2012-13. This year, however, Brisbane’s market is back on track.
Further data from the Real Estate Institute of Queensland (REIQ) Market Monitor for the June 2015 quarter, conveyed that the median house price, which has been hovering around $600,000 for several quarters has increased, largely due to strong activity in the premium million-dollar plus market.
REIQ CEO Antonia Mercorella said sudden declines in Brisbane house prices (in the near future) are improbable and any forecasts of dramatic house price drops were little more than “crystal ball gazing”.
“The Brisbane median house price reached a new high of $610,000 in the June 2015 quarter following a trend of positive growth of around two percent since the June quarter of 2013,” Ms Mercorella said.
Brisbane’s resurgence gathered pace during spring last year with escalating auction numbers reflecting increased confidence in the marketplace from vendors.
Furthermore, the Brisbane City Plan released in 2014, coupled with renewed interest in city or near-city apartment living, has also contributed to a dramatic increase in interest in land suitable for unit development.
The Plan has offered investors a new vision for Brisbane that has been positively embraced by local developers and has resulted in a 14% increase in overall appraisal level with some moderate-to-large increases in suburbs including South Brisbane, West End, and Kangaroo Point.
According to the Valuer-General’s 2015 Property Market Movement Report, the demand for real estate in Brisbane is not just coming from local buyers and developers, but also institutional buyers from other states of Australia and from overseas
Price growth in Brisbane has been predominantly solid with some moderate increases in the mid-to-upper price ranges in the city’s inner suburbs, and middle-ring suburbs (which lie between 10-20km from the city centre).
These inner city suburbs include Teneriffe, Hamilton, New Farm, Fortitude Valley, Bulimba and Hawthorne, as well as nearby inner suburbs such as Ashgrove, Paddington, St Lucia, and Bowen Hills.
In particular, interest in Newstead and Bowen Hills has developed progressively in recent years, but over the course of 2014, South Brisbane and it’s neighbouring suburbs became the areas of high demand, and this has translated into significant land value rises also.
Unfortunately real estate growth is not occurring everywhere, with activity in outer suburban budget-priced suburbs continuing to be subdued due to buyer confidence being inhibited over high listing numbers and concerns over unemployment and job security. Lower interest rates have equalised weakening economic activity however, budget priced outer suburban markets are likely to remain in this state, Domain predicts.