According to data just released from Core Logic, the Brisbane property market is currently holding the trophy for the best performing housing prices in the country. The capital city of the Sunshine State is beating out all other mainland states for all four property performance indicators.
Brisbane property market still on the upturn while Sydney and Melbourne plummet
This is the first time in eleven years that Brisbane has achieved this result. Back in 2007, property values all over the country were thriving in a pre-financial crisis market. The current market sees Sydney and Melbourne property values continuing to fall, with the national home value index also dropping for the ninth consecutive month. Since the housing market reached its peak in September of last year, the total decline in home valuation has reached 1.3%.
Despite these rather grim nationwide figures, it’s all looking up for Brisbane. When compared to other mainland capital cities, Brisbane has the highest positive change in home values over a weekly, monthly, year-to-date, and twelve-monthly time frame.
Over the last week, the growth rate of the Brisbane property market sits at 0.2%, marking the sole positive change in any city across the Australian property market. Over the monthly, year-to-date and twelve-monthly scales, Adelaide also experiences positive growth, but this comes in second to Brisbane in all categories. The Brisbane property market has increased in value by a staggering 1.2% over the last year, figures that aren’t seen anywhere else in the country except Hobart. Given Brisbane’s standing as the third largest capital city in Australia, the market is showing strong resistance against the decline seen in Sydney and Melbourne.
Home value changes in Australia’s capital cities. Data by CoreLogic.
With interstate migration rates out of Sydney reaching new heights, it’s no surprise to see the valuation figures also decreasing very significantly at 5.6% over the year. In conjunction with Melbourne’s 1.1% decrease over the last twelve months, the two largest cities in Australia no-longer look like smart moves for investors. While Sydney and Melbourne’s markets are both looking quite unfavourable, the Adelaide property market is on an upward trajectory similar to the Brisbane property market. Over the last year, the South Australian capital has experienced a value increase of 0.7%, with significant year-to-date and monthly increases too.
The key to Brisbane’s success here is slow and steady growth. Unlike Sydney and Melbourne, which both experienced mushroom-cloud levels of sudden growth several years ago, Brisbane’s expansion has been more gradual, allowing the market time to adjust and stabilise.
With Brisbane’s relatively affordable housing prices, as well as a large boost in the local economy, Core Logic experts predict the positive trend for the Brisbane property market is likely to continue. So dust off that trophy cabinet, it looks like this prize might continue to be dominated by Brisbane for quite a few years to come.
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