Brisbane’s median house price hits record high of $888,000
By Sarah Webb
Brisbane property prices have reached a record high amid the housing shortage, with house prices now topping $1 million in more than 60 suburbs.
Brisbane house prices rose 3.7 per cent to a median of $888,285 in the December quarter, the latest Domain House Price Report shows, and increased 9.7 per cent, or more than $78,000, last year – the steepest annual gain since September 2022.
Unit prices increased 3.9 per cent quarterly and 14.2 per cent annually, by about $65,000, to $524,202 – the fastest annual increase in almost 16 years.
And experts warn there’s more growth to come, given the lack of homes for sale, ongoing international and interstate migration, and the rental crisis.
Domain’s chief of research and economics Dr Nicola Powell said the pace of price gains had been increasing as buyer demand continued to outstrip supply, particularly for more affordable homes.
“These figures showcase that it’s really the heyday for units in Brisbane … and one of the reasons they may have had such a strong acceleration [in price growth] is because tenants want to get out of the [competitive rental] market, and they can’t afford a house,” Powell said.
“But houses have also moved through their fourth quarter of growth and each time that pace of growth has increased, so you can really see that momentum being built.”
“Low supply is at the epicentre of all this … [the number of homes listed for sale is] still 44 per cent below the five-year average for this time of year.”
Powell expected price rises to continue, but at a slower rate, as Brisbane’s liveability and comparative affordability – as well as major infrastructure projects – continued to attract new arrivals.
The doubling of the first home owner grant and challenging rental market could also result in record first home buyer activity, which would add further upward pressure to the price of entry-level homes. Predicted cash rate cuts later this year could also spark further price growth.
Brisbane unit and house prices have reached record highs. Credit: Istock
“Affordability pressures will contain some of it and we won’t see more runaway growth, but there is still an undersupply [of housing],” Powell said, adding there was an urgent need for more shovel-ready projects at affordable prices and less red tape.
The Ipswich region had the highest house price growth over the quarter, up 5.3 per cent, followed by Brisbane North and the inner city – up 5.1 per cent and 3.4 per cent respectively.
LJ Hooker Stafford principal Richard Mirosch said growth in the region had been off the charts, particularly for townhouses and units. One townhouse in the suburb was recently marketed for $120,000 more than it would have sold six months ago.
“All our buyers are owner-occupiers … and what’s driving this growth is a total lack of supply,” he said.
“First home buyers are now spending around $550,000 on a two-bedroom unit, and 12 months ago it would have sold for about $430,000 to $450,000, so that’s massive growth.”
McGrath Paddington sales agent Alex Jordan said supply constraints had led to a strong end of the year in the region, and noted the prestige sector had outshone the lower end of the market. But Jordan predicted prices would stabilise off the back of a rise in seller activity this month, which was giving buyers more choice.
“Inquiry rates for inspections are tracking well, [but the] shift I’m seeing is the ratio of inquiry to offers. Buyers aren’t making offers as aggressively as a month ago.
“From what we can see, the best of the growth is behind us. I think the high end of the market will perform well but the low to mid-end are more exposed to [higher] interest rates.”
Jordan achieved one of the region’s top sales of 2023 at 46 Royston Street in Brookfield – a six-bedroom house that sold for a suburb record of $6.75 million in June.
Brookfield’s median has increased 60.4 per cent over the past five years to $1.78 million, making it the fifth most expensive suburb in the city. New Farm, with a median of $2,675,000, remains Brisbane’s priciest and is one of 66 suburbs that recorded a seven-figure median.
The steepest growth for units was in the city’s western and southern regions, where prices were up 7.1 per cent and 3.5 per cent over the quarter respectively.
Ray White Holland Park principal Piers Crawford said a major population upswing had pushed up prices in his patch, alongside increased market confidence.
“Predicted drops in interest rates and talks that inflation is coming down has helped that confidence … and because rents are high, we’re seeing more first home buyers. We’ve particularly noticed high demand for properties that sit between $650,000 and $700,000. During one recent open home [for an entry-level property] it was like a nightclub queue,” Crawford said.