Brisbane house prices hit record as southern surge swamps our builders
Brisbane’s median house prices have hit a record high of $738,000 after a 2.2 per cent rise in the December quarter, according to real estate listing site Domain.
Brisbane house prices are increasing again (photo: Domain/Tammy Law)
Over the entire year house prices rose 4.7 per cent which Domain senior research analyst Dr Nicola Powell said was the result of southern buyers seeking better bang for their property buck and a balmy climate.
But there is more to it. The outer suburbs and regions are showing significant growth beyond the increases seen in Brisbane. Logan, Moreton and Redlands all experienced bigger increases than Brisbane which analysts have attributed to people now seeing space as a big attraction and first-home buyers using government grants to build rather than buy established housing.
Relocation companies had experienced a 400 per cent increase in demand for quotes from Sydney and Melbourne residents and the level of inquiry to builders for new homes in southeast Queensland is “phenomenal,”.
Metricon Queensland general manager Luke Fryer said new homes sales were up 80 per cent and the level of enquiry in local property had been extraordinary.
“The major relocation companies are quoting 400 per cent increases in quotes to people who are wanting pricing to relocate from Sydney and Melbourne up to the Gold Coast and Greater Brisbane,” Fryer said.
Interstate migration and government stimulus measures have helped boost new homes sales and building approvals across south-east Queensland, he said.
“We are seeing a significant increase in domestic migration.
“The level of enquiry and level of people committing to building a new home on the Gold Coast and southeast Queensland has really been phenomenal.”
“I’d suggest some 80 to 90 per cent up year on year.
“It’s been an extraordinarily positive result and response from Australians who do have certainty around their employment.”
While trades and product supply pressures were currently manageable, Fryer said they could become an issue later this year when more building approvals will be processed.
Domain said the median price increase for Greater Brisbane was 5.6 per cent for the year and the median price for the region was now $616,000.
The company said the last quarter of 2020 saw the largest migration into the Brisbane market Domain had experienced in terms of inquiry and buying.
“Interest rates are also extremely low and that cheap credit is a big lure for some buyers. This really does heighten activity and with interest rates expected to stay low I’m expecting the market activity to remain like this,” Powell said.
“But one of the other factors driving growth is the affordability. So, while Brisbane has always had a pull from southern states, I think it has been accelerated (due to the pandemic) and this is driving prices.”
Alex Jordan, of McGrath Estate Agents Paddington, said that trend had since culminated in one of the strongest markets he had ever seen, particularly for the Brisbane LGA.
“I sold 10 Bernhard Street, Paddington, for former Brisbane Broncos head coach Anthony Seibold in October last year for $2.3 million. In April 2019 it sold for $1.9 million,” Jordan said.
Sydney’s median house price was now $1.2 million and Melbourne was $936,000 and Canberra was $855,000.
-Additional reporting ABC