Dwelling values across Brisbane rose a staggering 29.7 per cent in the past year, but it was the more affordable price points that led the charge.
New figures from CoreLogic showed Brisbane recorded the highest annual growth rate in dwelling values nationally, but there are also signs the heat is finally coming out of the property market – everywhere.
“Lower value segments continue to firmly lead growth,” the report said.
“In the three months to February, capital city homes saw the top quartile of values rise 0.8 per cent, compared to 3.4 per cent across the lowest quartile of values.”
Dwelling values across Brisbane rose a staggering 29.7 per cent in the past year. Picture: NCA NewsWire / John Gass
CoreLogic looked at the 10 key market metrics “making headlines in March”, from dwelling values and growth rates to sales volumes and clearance rates.
The report found that slowing buyer demand, tighter lending conditions and affordability constraints had contributed to an easing in Australia’s national home value growth rate in February – the lowest since October 2020.
But that slowing also coincided with a new record high for the residential market’s combined value, which hit $9.8 trillion at the end of February, up from $9.7 trillion in the previous month.
“Australia’s household wealth is underpinned by residential real estate, now worth almost $3 trillion more than superannuation, the Australian listed stocks and commercial real estate
combined,” the report said.
10 Morgan St Ascot, dubbed ‘the trophy home of the decade’, had been rented out at $5500 a week, and recently sold for $12.27m, making it the biggest property transaction of the year in Brisbane so far.
Nationally, dwelling values were 20.6 per cent higher over the past 12 months (0.6% gain in February), which was down from the recent high of 22.4 per cent in the 12 months to January and a market peak of 2.8 per cent in March 2021.
Contributing to that was a significant uplift in new listings nationally, longer days on market due to more listings, softening auction clearance rates and falling approvals for finance.
However, the market metrics showed that vendor discounting was “around record lows”, reflecting “strong selling conditions”.
And while advertised stock had gone up, it was still “well below the average for this time of the year”.
“Sales volumes (nationally) have seen around 1.2 sales for every new listing added to the market in recent months,” the report said.
Rent values also rose 8.7 per cent nationally in the 12 months to February, which was down on the high of 9.4 per cent in the 12 months to November last year.
CoreLogic’s head of research Tim Lawless said Brisbane had been the standout market nationally, but there were signs that it too was “coming off the boil”.
“The quarterly growth has started to come down slightly, from a peak of 8.5 per cent in December to 7.2 per cent,” he said.
“Regional Queensland, particularly in the southeast markets, is also one of the strongest markets nationally, but quarterly growth there was also down, from 6.7 to 6.5 per cent.
“But both markets are still very much sellers markets, where there is still this sense of urgencym unlike in Sydney and Melbourne, where advertised stock is normalising.
“Brisbane, on the other hand, is still seeing advertised stock around 40 per cent below the five year average.”
CoreLogic research director Tim Lawless
Mr Lawless said he did not expect to see a sharp downturn in value growth post-floods, but there was likely to be a “longer term dent in valuations”.
“Areas that were not impacted, however, will likely be in even higher demand,” he said.
Samantha Healy
