Brisbane has led the nation in home price growth over the past month, with values hitting a record high as homeowners brace for a potential rate hike next week, a new report reveals.
PropTrack’s Home Price Index shows the city’s unit and house prices combined gained another 0.5 per cent in October to hit a new median price peak of $773,000 – almost as high as Melbourne’s at $815,000.
That’s the equal biggest increase for the month alongside Perth and the10th consecutive month of rises – the longest period of growth since the pandemic upturn.
Prices in Brisbane are now 7.4 per cent above their level a year ago and 53 per cent higher than they were before the pandemic in March 2020.
“It’s testament to the exceptional outperformance in growth in Brisbane during the pandemic and the continued growth into this year,” PropTrack senior economist Eleanor Creagh said.
“Continued strong population growth, strengthening labour market conditions, very tight rental markets with vacancy rates below 1 per cent – and, at the same time, completion of new homes isn’t where it needs to be with respect to how quickly the population is growing.
“If prices continue to grow at the pace of the past quarter in Brisbane (1.98 per cent), they will end the year up a little over 9 per cent.”
Ms Creagh said choice remained limited in Brisbane, with not enough new listings hitting the market to keep up with buyer demand.
In regional Queensland, home prices also lifted to a new peak of $622,000 – up 0.61 per cent in October.
This brings regional prices up 6.5 per cent compared to October last year and nearly 58 per cent above pre-pandemic levels – making regional Queensland the strongest performing market in the country since the – pandemic.
Home values on the Gold and Sunshine coasts jumped 2.4 per cent in the September quarter, to medians of $869,000 and $939,000, respectively. In Townsville, they also rose a healthy 2.16 per cent last quarter to $401,000, while in Cairns, values rose 0.4 per cent in October to a median of $494,000.
Nationally, home prices climbed 0.36 per cent month-on-month to peak levels. The only capital city to not record a rise in home prices in October was Darwin.
It comes as the big four banks are all predicting the Reserve Bank will hike interest rates another 0.25 per cent on Melbourne Cup day after increases in inflation and retail trade data.
But Ms Creagh said a 25- basis-point increase was unlikely to impact the outlook for continued home price growth.
“Strong demand stemming from the rebound in net overseas migration, tight rental markets and limited housing stock has offset the impacts of substantial rate rises and the slowing economy so far,” she said. “I wouldn’t see another hike deterring the uptrend.”
Source: Elizabeth Tilley for the Courier Mail