Source: Brisbane Times
Brisbane's house price growth ended the year on a high, while unit price growth slumped to a 15-year low, according to a new report by Domain.com.au.
Brisbane house prices bounced back over the December quarter with the median house price increasing by 1.5 per cent to reach $511,361 up on the 0.7 per cent recorded over the previous quarter and the highest result for the year, according to Domain Group's latest housing price report.
Domain Group chief economist Andrew Wilson said,"This is a positive result for Brisbane with house prices finishing on the front foot. With finishing last year so positively, it looks like it will be a good year of growth for house prices."
"It is encouraging for Brisbane. The city is still viewed as an affordable market which appeals to both investors and owner occupiers.
"Owner occupiers are taking advantage of low interest rates and affordability, which we are seeing happen particularly in the Logan area."
However, it was a different story for units, which have continued to fall over the December quarter by 1.1 per cent to $359,000. The local unit price dropped 5.3 per cent over 2015, making it the sharpest decline in 15 years.
Oversupply was a key ingredient for the unit price slump.
"Unfortunately for unit owners, the record levels of new apartments continue to impact the Brisbane unit market, with supply clearly pushing ahead of demand. This has contributed to a fall in unit prices across the city," Dr Wilson said.
"As there are high numbers of developments to come, they will surely continue to put pressure on unit prices."
LJ Hooker Brisbane Central director Des Besanko said although the pressure on unit growth was there, prices and affordability in Brisbane were still positive.
He said the disparity occurring between Brisbane and the southern states was helping Brisbane's real estate market.
"There is a kind of internal migration where people are selling up in the south and buying in Brisbane."
