$74,800 rise: Brisbane hits $1m as Qld set to boom
Brisbane has officially joined the ranks of the world's million-dollar house markets, with home prices soaring by the largest dollar increase among all Australian capital cities.
The latest PropTrack Home Price Index, released Tuesday, has locked in the Queensland capital's median house price at $1.015m, as it flagged a fresh boom in prices out of regional Queensland.
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Brisbane homes (houses and units) spiked by the equivalent of an average salary, rising $74,800 in the past 12 months without owners lifting a finger – with the biggest driver coming out of units which jumped a massive 12.9 per cent, up $82,300 in just one year to $708,000, while houses rose by $68,300 (6.93pc) to notch its $1.015m level.
Brisbane's median price for all dwellings now sits at $908,000, marking an 8.26pc increase for the year to June, but experts are predicting the next big surge will come from regional Queensland, which is already outpacing Brisbane, seeing its home price rise 9.2pc in 12 months to $719,000 — a jump of $70,700 in one year.
Townsville leads the charge as not just the strongest Queensland SA4 region but the top performer in Australia, with an 18.7pc rise in its median home price to $546,000 over the past year.
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Mackay-Isaac-Whitsunday recorded a 14.98pc surge, bringing its median to $550,000, closely followed by Central Queensland's 14.72pc rise to $531,000. Areas west of Brisbane city also showed strong results: Toowoomba rose 13.01pc to $674,000, Ipswich increased 11.36pc to $754,000, and Darling Downs-Maranoa jumped 9.98pc to $457,000.
Across regional Queensland, Wide Bay notched a 9.69pc rise to $596,000, Cairns climbed 8.62pc to $571,000, Gold Coast rose 8.02pc to $1.066m, Queensland-Outback increased 6.74pc to $267,000, and Sunshine Coast was up 5.23pc to $1.076m.
REA Group senior economist Eleanor Creagh said Brisbane continued to see strong performance despite affordability constraints slowing the pace of growth.
'Prices are continuing to lift, and we're expecting that they will continue to do so,' she said. 'Affordability is a significant challenge even with interest rates falling.'
Ms Creagh said many existing homeowners were now using accumulated equity to upgrade or purchase investment properties, often less expensive options on Brisbane's outskirts or in regional Queensland.
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Real Estate Institute of Queensland head Antonia Mercorella said there was extraordinary strength in Queensland's property market.
'Brisbane is playing catch up,' she said. 'Quite frankly, we have often been overlooked, Sydney and Melbourne have been the cities to watch.'
Ms Mercorella expected to see a flight of investment capital to more affordable areas, especially across Queensland's regions.
'Regional Queensland, even though we have seen strong price growth as a general rule, is a more affordable option compared to the southeast corner in many cases.'
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But she warned new housing supply would ultimately determine how prices shape up. 'When we're talking about affordability and accessibility, all roads lead back to supply.'
'Anyone who's trying to get their foot on the ladder is all too familiar with this price growth,' she said. 'It's timely that the government's shared equity scheme beginning this month has a threshold of $1m reflecting market reality.'
Across the greater Brisbane region's SA4s, Brisbane-North was up 9.78pc to $1.019m, Moreton Bay-North rose 9.37pc to $825,000, Logan-Beaudesert increased 8.4pc to $784,000, Brisbane-East climbed 8.22pc to $1.027m, Moreton Bay-South jumped 7.7pc to $902,000, Brisbane Inner City rose 7.21pc to $940,000, Brisbane-South increased 6.42pc to $1.159m, and Brisbane-West climbed 6.02pc to $1.191m.
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Courier-Mail
5 hours ago
- Courier-Mail
$74,800 rise: Brisbane hits $1m as Qld set to boom
Brisbane has officially joined the ranks of the world's million-dollar house markets, with home prices soaring by the largest dollar increase among all Australian capital cities. The latest PropTrack Home Price Index, released Tuesday, has locked in the Queensland capital's median house price at $1.015m, as it flagged a fresh boom in prices out of regional Queensland. MORE: Mapped: Owners of Aus' trashed islands named Australia's 'most attractive' handout revealed MORE: All the tax write offs Aussies can claim ATO's dragnet: Millions of side hustles face shock tax bill Brisbane homes (houses and units) spiked by the equivalent of an average salary, rising $74,800 in the past 12 months without owners lifting a finger – with the biggest driver coming out of units which jumped a massive 12.9 per cent, up $82,300 in just one year to $708,000, while houses rose by $68,300 (6.93pc) to notch its $1.015m level. Brisbane's median price for all dwellings now sits at $908,000, marking an 8.26pc increase for the year to June, but experts are predicting the next big surge will come from regional Queensland, which is already outpacing Brisbane, seeing its home price rise 9.2pc in 12 months to $719,000 — a jump of $70,700 in one year. Townsville leads the charge as not just the strongest Queensland SA4 region but the top performer in Australia, with an 18.7pc rise in its median home price to $546,000 over the past year. MORE: Foreign investor's abandoned island for sale Cash-strap student turns $40k to 38 homes Mackay-Isaac-Whitsunday recorded a 14.98pc surge, bringing its median to $550,000, closely followed by Central Queensland's 14.72pc rise to $531,000. Areas west of Brisbane city also showed strong results: Toowoomba rose 13.01pc to $674,000, Ipswich increased 11.36pc to $754,000, and Darling Downs-Maranoa jumped 9.98pc to $457,000. Across regional Queensland, Wide Bay notched a 9.69pc rise to $596,000, Cairns climbed 8.62pc to $571,000, Gold Coast rose 8.02pc to $1.066m, Queensland-Outback increased 6.74pc to $267,000, and Sunshine Coast was up 5.23pc to $1.076m. REA Group senior economist Eleanor Creagh said Brisbane continued to see strong performance despite affordability constraints slowing the pace of growth. 'Prices are continuing to lift, and we're expecting that they will continue to do so,' she said. 'Affordability is a significant challenge even with interest rates falling.' Ms Creagh said many existing homeowners were now using accumulated equity to upgrade or purchase investment properties, often less expensive options on Brisbane's outskirts or in regional Queensland. MORE: Govt pays $3.3m for unliveable derelict house Shock as city's distressed home listings surge 36pc in one month Real Estate Institute of Queensland head Antonia Mercorella said there was extraordinary strength in Queensland's property market. 'Brisbane is playing catch up,' she said. 'Quite frankly, we have often been overlooked, Sydney and Melbourne have been the cities to watch.' Ms Mercorella expected to see a flight of investment capital to more affordable areas, especially across Queensland's regions. 'Regional Queensland, even though we have seen strong price growth as a general rule, is a more affordable option compared to the southeast corner in many cases.' MORE: Rate cut windfall: Aus big bank's shock new forecast But she warned new housing supply would ultimately determine how prices shape up. 'When we're talking about affordability and accessibility, all roads lead back to supply.' 'Anyone who's trying to get their foot on the ladder is all too familiar with this price growth,' she said. 'It's timely that the government's shared equity scheme beginning this month has a threshold of $1m reflecting market reality.' Across the greater Brisbane region's SA4s, Brisbane-North was up 9.78pc to $1.019m, Moreton Bay-North rose 9.37pc to $825,000, Logan-Beaudesert increased 8.4pc to $784,000, Brisbane-East climbed 8.22pc to $1.027m, Moreton Bay-South jumped 7.7pc to $902,000, Brisbane Inner City rose 7.21pc to $940,000, Brisbane-South increased 6.42pc to $1.159m, and Brisbane-West climbed 6.02pc to $1.191m. MORE REAL ESTATE NEWS
News.com.au
5 hours ago
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‘Renewed confidence': House prices hit record high on interest rate cuts
Australia's housing market soared to a fresh high during the last financial year, with buyers spurred on by interest rate cuts. National home prices rose 0.4 per cent in June and are now up 4.6 per cent on this time last year, PropTrack figure show. House prices were up in every market in June, with national house prices on average sitting $40,900 higher than a year prior. This was led by capital city growth, with Adelaide posting the strongest monthly rise of 0.6 per cent for the month, extending its streak of outperformance and retaining its title as the strongest performing capital city over the past year (up 9.8 per cent). Sydney and Hobart were both up 0.5 per cent for the month of June, while Melbourne was up 0.3 per cent, although prices were still 1.1 per cent lower than the city's record high. The rise in house prices comes off the back of another interest rate cut in May, the second in the RBA's rate-cutting cycle. Would-be homebuyers are also factoring further interest rate cuts, with varying forecasts suggesting another three or four rate reductions are coming by early 2026. REA group senior economist and report author Eleanor Creagh said this rate-cutting cycle could be a little different. 'Market momentum is building amid renewed buyer confidence and improved sentiment, buoyed by falling interest rates and expectations of another rate cut in July,' she said. 'However, the upturn remains measured as affordability constraints keep the pace of growth in check.' Ms Creagh conceded further house price growth was likely on the back of rate cuts. 'Further interest-rate cuts expected later this year will ease borrowing costs, adding to the momentum in housing demand and reinforcing recent price growth,' she said. REA research follows the Reserve Bank governor Michele Bullock being questioned about house prices following the board's May rate-cut decision. 'If the right thing to do in terms of employment and inflation is to lower interest rates, I think we have to accept what that might imply for housing prices because, as I said earlier, the issue for housing is supply and demand,' she said. Ms Bullock shifted the blame from interest rates to government policy. 'I guess my personal reflection is that there's nothing the Reserve Bank can do about these affordability issues of housing,' she said. 'This is an issue of housing demand and housing supply, and increasingly this issue is finding its way into the governments, both state and federal governments, and that's where the focus has to be.' The RBA will make its next interest rate decision on July 7-8 when it is widely predicted to reduce interest rates further.
ABC News
5 hours ago
- ABC News
Home prices reach fresh record highs as rate cuts expected to fuel growth
Housing prices reached a fresh peak in June as falling interest rates boosted market confidence. The latest home value index from property research firm Cotality showed a fifth straight month of growth, with national dwelling values up 0.6 per cent, following a 0.3 per cent dip over the summer period. Every capital but Hobart saw values rise in the month, with the Tasmanian city recording a fall of 0.2 per cent. While regional markets were previously outperforming the capitals, the trend flipped in June, with the major cities recording a higher rate of growth. Data from REA Group's PropTrack also showed house prices at historic highs, with Adelaide experiencing the strongest monthly rise, up 0.6 per cent — now up almost 10 per cent over the year. "So far this year, the capital city markets are leading the charge," REA senior economist Eleanor Creagh told ABC News. The median house price in Brisbane is now over $1 million. "The biggest factor here absolutely is lower interest rates," Tim Lawless, the head of research at Cotality (formerly known as CoreLogic) explained. In February of this year, the Reserve Bank cut interest rates for the first time in almost five years, before delivering its second cut this cycle in May, taking the cash rate below 4 per cent. Cotality found Darwin recorded the strongest house price growth at 1.5 per cent in the month — largely due to the relative accessibility of investing there compared to other capitals. "I think the growth trend we're seeing now, which is evident over the past 12 months, is really being fuelled by this renewed level of investment activity coming into the Darwin marketplace and just the sheer affordability," Mr Lawless said. "We're looking at a median dwelling value in Darwin that's about $540,000 — quite low when you compare it to other markets. "Most markets are at near record highs and have been pushing to new record highs month after month, for some time," Mr Lawless noted. He labelled some markets as "extremes": "You've got markets like Perth, Adelaide, Brisbane that have seen values rise by more than 70 per cent in five years, and each of those markets has been at record highs for some time." Despite the high rates of growth, Mr Lawless said it was not as strong as in recent years. "If you go back, say, a couple of years, the rate of growth was about double what it is at the moment. With the RBA expected to deliver more relief for mortgage borrowers in a week, falling interest rates are tipped to fuel continued price growth. However, both Cotality and Proptrack cite several factors that should keep a lid on the increases, including elevated household debt, reduced demand from slowing population and migration growth, cautious lending policies and even geopolitical risk from events in the Middle East and Ukraine. "Stretched affordability is putting a bit of a handbrake on home price growth, and although we're seeing an upswing in prices this year as rates fall, we're seeing a more gradual pace of home price growth compared to previous easing cycles," REA's Eleanor Creagh said. "We're still seeing housing very much unaffordable for most Australians," Cotality's Tim Lawless agreed. "I think there's still a few barriers to really see the housing market take off from here. While borrowers may benefit from falling interest rates, it may be outweighed by the growth in home values, making owning a home no more affordable, according to Cotality. "The 2.4 per cent rise in national dwelling values through the first half of the year equates to a dollar value increase in the median dwelling value of approximately $19,000, eroding much of the benefits of lower rates when it comes to borrowing capacity," its report noted. As for renters, the pace of growth for rents has been slower than that of housing values, Mr Lawless said, describing it as "an ongoing slowdown". "The past 12 months, we saw national rents rise by just 3.4 per cent. So in annual terms, that's the lowest we've seen since early 2021. The lack of affordable housing has led to a change in household structures, he said, including the resurgence of share houses and multi-generational households. "Some of the largest slowdowns we've seen in rental growth have been in the largest capital cities, Sydney and Melbourne, particularly in the apartment markets," Mr Lawless said. "We've seen less demand coming in from net overseas migration, alongside other factors around rental affordability, just forcing a restructure in household structure. "We're seeing more group households reforming, multi-generational households are becoming more common as well, which I think is a clear reflection of rental affordability just driving this ongoing change in how people actually form a rental household."
