Did you know that combined, the total value of homes across Australia has now reached $7.2 trillion!!
Property values in Australia are driven by factors such as population growth, job creation, demographics, infrastructure projects, new residential supply, as well as the proximity of amenities such as shops, transport and schools. The most recent data from CoreLogic shows that Melbourne and Canberra have recorded the highest growth in property values in the three months to July 2017. So how did Brisbane perform?
How did Brisbane property stack up?
In July 2017, Brisbane property recorded median values of $555,370 for houses and $391,120 for units. While Brisbane values were up year-on-year, they were down from June 2017.
Auction clearance rates in Brisbane have only increased marginally year-on-year to July 2017.
Overall, Brisbane property values are now just 22.7% higher than they were a decade ago.
However, according to one of Australia’s leading real estate commentators, John McGrath, Brisbane is primed for strong growth over the next five to six years. Speaking at a function in Brisbane in July, John said values in Brisbane would grow closer to what buyers pay in Sydney.
A snapshot of the Brisbane property market in mid-2017
We are still seeing the effects of a low interest rate environment. Australia has been enjoying low interest rates since the 2008 global financial crisis. And as we know, as interest rates drop, property prices tend to rise as more and more buyers get in on the action.
However, Brisbane property hasn’t seen the crazy value increases that Sydney and Melbourne markets have. Brisbane’s house market is performing well, with growth at a moderate and sustainable level.
Units in Brisbane are not performing as well as houses. Units weaker performance has been attributed to higher
supply levels, which has seen tighter credit policies and cautious investors.
What does this mean for Brisbane property?
The moderate growth in the values of the Brisbane property market is testament to its stability and dependability. As Brisbane property values keep slowly climbing up, affordability remains at a sustainable level. This makes Brisbane property very attractive for relocation and investment.