Brisbane Knocks Out Growth While Other Capitals Go Backwards
02nd Aug 2018
BRISBANE is the only Australian capital to come away from July with a rise in home values, with latest data showing every other major city has gone backwards.
The month-to-date data, which will be updated tomorrow (Wednesday) found Brisbane’s index had just managed to keep its toes in positive territory (up 0.1 per cent over the month to July 30) at a time when other capitals were red-lining including Sydney (-0.6 per cent), Melbourne (-0.9 per cent), Adelaide (-0.1 per cent) and Perth (-0.8 per cent).
CoreLogic research analyst Cameron Kusher told The Courier-Mail that the CoreLogic daily hedonic index was tracking 0.6 per cent lower across the combined capitals in July — with the weak reading dragged down by Sydney and Melbourne.
“Brisbane may be the only major capital to record a lift in dwelling values over the month,” he said.
“It’s been a pretty rapid slowdown happening in Sydney, Values are falling in Melbourne as well — probably not quite as rapid as in Sydney but after long period of growth it is slowing.”
“It looks like Brisbane will be the only capital city where values will be higher over the month,” he said, much of which was attributed to the city “starting to see the impact of an immigration pick up”.
Among the sales notched in July was 21 Firhill Street, Ashgrove — a two bedroom cottage — that sold for $768,000 yesterday (July 30), which was about $243,000 more than the owners paid five years ago — a jump of 46 per cent in price, according to CoreLogic records.
The year to date figures were also a wakeup call for the rest of the capitals, with Sydney down -3.2 per cent and Melbourne -2.6 per cent, he said.
Brisbane was positive on that front too though “values are only up 0.4 per cent so far this year” for the Queensland capital.
“You can see a clear trend emerging that growth in pretty much all cities is slowing and that the decline in Sydney and Melbourne more rapid.”
This as the latest Housing Industry Association Residential Land report out Friday found per square metre Brisbane lots were cheaper to buy ($572sqm) than all major capitals except Hobart ($221sqm), with Sydney at $1,120 sqm, Melbourne $832 sqm, Perth $751 sqm and Adelaide $572 sqm.
CoreLogic’s commercial research analyst, Eliza Owen, said the hedonic indices came out a higher frequency than the land reports “so won’t reflect the same demand”.
But, she added, “given we’re now seeing most of the capital city housing markets moving to the downturn of their cycle, I would expect land prices to follow that eventually, particularly seeing a bit of pressure is coming off demand in Sydney and Melbourne.”
The median lot price in Brisbane was now $242,000, compared to $359,000 in Melbourne and $467,500 in Sydney.