Brisbane housing market update [video]
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Last month’s 0.6% lift in national home values marked the 14th consecutive month-on-month rise, taking the index 1.6% or about $12,000 higher in the March quarter.
Since declining 7.5% in the downturn between April 2022 and January 2023, the national home value index has increased by 10.2%, adding approximately $72,000 to the median value of a home and pushing to new record highs each month since November last year.
The national quarterly pace of growth accelerated from 1.4% in Q4 last year to 1.6% in Q1 this year.
Brisbane has continued a run of solid growth, with values rising 1.1% in March to be 3% higher through the past three months, adding approximately $25,000 to the median house value and $23,000 to the median unit value in Q1.
Though housing values are rising faster than at the end of last year, the quarterly trend has halved relative to the middle of last year when home values were rising at 3.3% quarter-on-quarter.
Rate hikes, cost of living pressures and worsening housing affordability are all factors that have contributed to softer conditions since mid-last year.
However, an undersupply of housing relative to demand continues to keep upwards pressure on home values despite these headwinds.
The monthly movements in housing values across our capital cities continue to be punctuated by diversity.
Across the broad value-based cohorts of the market, it’s the middle level and lower quartile of the unit market that are recording the fastest rates of capital gain, with these two sectors up 5.2% and 4.4% in value in the March quarter.
This trend of stronger conditions across the lower-value sector was evident in each of the major capitals.
With housing affordability becoming more challenging and borrowing capacity lower than a year ago, it’s no surprise to see demand now being skewed towards the middle to lower end of the value spectrum.
Home sales have remained strong, estimated to be 6.2% higher than a year ago through the March quarter and almost 4% above the previous five-year average.
Regional housing markets are also recording a rise in values with similar levels of diversity as their capital city counterparts.
Demand for housing has been holding up well, despite the higher cost of debt and low sentiment.
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