National median unit price hits record high, while median house prices decrease in Perth and Darwin.
Brisbane’s property market has managed to defy the odds and stay strong for buyers and sellers despite poor economic conditions last year.
The median house price is now $540,758, a jump of 4.5 per cent from $511,361 12 months ago.
A weak mid-year period caused some anxiety in the sector, but house prices in Brisbane had a strong last quarter of the year, according to the latest figures from Domain Group’s rental and house price report.
23 Yarrie Street is for sale in Corinda. Photo: Cape Cod Residential
Domain Group chief economist Andrew Wilson said low migration, high unemployment, and low job security created the air of uncertainty.
“Another very solid result and when we look at the regions, all regions recorded growth over the year,” he said.
Suncorp senior analyst Darryl Conroy echoed Dr Wilson’s optimism. “From what I’ve seen, activity is picking up,” he said. “Some of those warnings of doom and gloom in property are starting to look a bit unfounded right now.”
Young families are flocking to Corinda, revitalising the suburb. Photo: Cape Cod Residential
Dr Wilson said Corinda had the strongest price growth over the past six months. He said the median house prices rose 37.7 per cent to $840,000.
Place Graceville principal Brad Robson said the tightly-held suburb saw several high-end sales toward the end of last year, which may have skewed the results.
“Normally we would see a more broad selection available,” he said.
Corinda saw 37.7 per cent growth in 2016. Photo: Cape Cod Residential
Mr Robson earmarked the area for growth, as older residents moved out of the suburb’s pre-war homes and opened up opportunities for young families to move in.
“The area is on the move, it’s a great area, 10 kilometres from the CBD,” he said. “There was an explosion of great cafes and restaurants in the area.”
But it was a different story for unit prices, with a continued fall.
The unit median price fell 5.1 per cent to $425,000, “clearly a product of higher levels of supply”, said Dr Wilson.
Mr Conroy said the drop in prices was a result of a two-tiered rental market. A large number of new and old poor quality units meant buyers drove down prices, he suggested.
“I think it is an issue with some of the products and the price point attached to them,” he said.
Dr Wilson forecast unit prices could pick up next year. “We will start to see over time those higher levels of units absorbed into the marketplace,” he said.