Murdoch invents Brisbane house price boom

When there is no bubble, invent one!

HOUSE prices in Brisbane have hit a new record high with some suburbs in the the sought-after inner-city ring increasing by more than 20 per cent in the last year.

St Lucia, Ascot, Auchenflower and Wilston were the best performing suburbs in Brisbane where the prices increased by more than $150,000.

Property experts say the Queensland’s southeast had emerged as a powerhouse property market generating solid capital growth for homeowners and putting its southern counterparts to shame.

The latest Real Estate Institute of Queensland quarterly report shows the Brisbane local government area median house price rose 3.6 per cent over the year to June to a new high of $655,000.

That’s nearly 60 per cent higher than it was a decade ago, showing the resilience of the city’s housing market against headwinds such as the global financial crisis and the mining downturn.

The independent data is a little more sober with a sub-2% real gain in the past year and recent slowing to boot:

Still, Brisvegas is the cheapest it has ever been versus the Southern bubbles and population growth has begun to increase, so you never know.

That said, the apartment glut has only just begun so there is plenty of supply to absorb new demand:

Never let the truth get in the way of a good bubble.

 

Comments

  1. brisbane has been noticeably ruined. every time i have returned there the city has become uglier and less amenable to the human scale. the sheer number of skykennels that have been constructed there make the place look more like a low rent hong kong than the attractive city that it used to be.

      • maybe so but i did read that brisbane has one of the highest pop densities of all of the big cities in australia. i feel like there are more towers there than nice old buildings over any other big city in aus.

    • Stalled in our area earlier this year………….still infill development happening….everyone still land hungry. People are starting to notice, hence the build-up in propaganda.

      It is relatively affordable but there are no decent paying jobs that don’t involve building residential housing. Doesn’t make sense to move here except for retirement to one of the coasts and the traffic flow is horrendous. The end of the Commonwealth Games money will be the tell.

    • I’m from Brisbane and live in Melb now but I have to somewhat agree. Once suburban areas have been turned into apartment zones with cars everywhere (no car parks) and the skyline is an apartment mecca.

    • Left Brisvegas in 2014 and recently visited and was shocked by the new highrise apartments around Milton Station which are still going up. No wonder the roads are gridlocked. @Flawse, Redcliffe apartments ‘boomed’ 5 to 10 years ago, but have slowed more recently due the lack of sales. Some of the apartments built 10 years ago are already falling to pieces and I inspected some newer builds a few years ago and the design was woeful as it appeared they were just trying to shoehorn as many apartments into the space as they could. Moved out that way in the late 90’s so have witnessed many changes.

      • According to realestate.com.au suburb profile, Redcliffe apartments were worth more than houses in the period from 2008 to 2013. Something definitely looks fishy about these figures. I guess they are comparing old houses against brand new apartments (with the associated depreciation tax write-offs that are built into the price).

      • @yogiman you are correct. Many old ‘seaside’ fibro shack on small blocks. In our street the first ‘highrise’ (8 levels from memory) was selling apartments around the $169k mark while houses in the street were selling for as low as $80k.

    • I’m pretty hard to shock when it comes to housing sales propaganda posing as news but this gave me a physical stomach lurch. This has to be a new low. The data Does not support and agents are calling back after a viewing which is unheard of in the last ten years. You can hear the hint of fear and urgency in their tone up here. Sure housing will fair better than apartments but the apartment blow off will be big and no doubt contagious. I take this as a big red contrarian flag for Brisi. Desperation… yes. But the influence peddling to take out a whole front page?! Woah. The big guys must all be in this up to their eyeballs. However, this will be on the table at the weekend BBQ for sure. Mission accomplished? 🙁

  2. PlanetraderMEMBER

    Traffic is still much better in Brisbane though getting worse.
    I live in one of those suburbs mentioned and have attended a number of auctions nearby in recent months just to gauge prices etc and see who turns up. I can assure you that 20% growth is rubbish. In fact I would say that prices have been flat the past few years at best based on sales and results.

    • Just checked those suburbs profiles on realestate.com.au – basically flat over the past few years. St Lucia may indeed be up $100k in last several months, but this just brings it back to where it was in 2014 (and only slightly higher than 2010).

      • +1

        We have been watching Pullenvale/Brookfield/Kenmore/Chapel Hill/Fig Tree Pocket and Chelmer/Graceville/Corinda for years now. Fig Tree Pocket, Graceville and Corinda have seen some growth, but the rest are just marking time.

  3. Rents and prices falling in Brisbane. Clearance rates sub 40% even when half the auctions go missing. Where is the disclosure in that desperate advertisement? That dwelling/population chart would look far worse with the right scaling as well. That being starting at 40,000 on rhs for the 20,000 dwellings built, which drags the green line lower.

  4. Well im hoping the downturn in perth continues.
    When labor wins the next election and ditches NG and CG, im hoping the price shock will allow me to finally buy a house.

    • AngryMan, Just curious about deflating-bubble psychology here, at what point do you buy knowing that the downslope will be long and deep? Do you have your own (affordability) benchmark at which point you will buy even if it is still trending down and potentially or probably much more to go?

      • It will be decided on a combination of need and the price. Assuming the downturn continues for now, my current plan is to wait at least 1 year after labor wins the next election. Assuming i dont NEED to purchase before that of course, and assuming labor gets rid of NG and CG as they have promised.
        After 1 year with a labor govt i intend to purchase something even if i think the prices will continue to decline further.

      • Worth noting that you have one advantage in the housing market over (say) the stock market. In the stock market you go in and pay the price of the day. You can also see the price the following week (and so you know if you got it wrong).

        But no-one really knows the “correct” price of a house – especially in a downturn. So you can make a lowball offer. This is effectively insurance against further price falls, because you are already paying “under” the market rate. Wait until sellers get really desperate, and THEN go in – LOW.

      • You didn’t ask me, but what the hell…

        My partner and I have substantial cash resources that we are contributing to while we rent, and we will start considering purchasing once prices have dropped to the point where we can pay cash, but we’re happy to keep renting for as long as prices keep dropping, which they are about to start doing. I hope to retire in about 5 years and I want to own the roof over my head in retirement, so that is a hard limit.

        Meanwhile, we’re very comfortable renting while the kids finish their current schooling.

        Like David says, don’t buy now!

      • I’m living in a house in Perth allegedly worth $900,000 and I’m paying $500pw rent. Even if the prices didn’t fall anymore (they are) I’d probably never buy unless I make enough on stocks for it to become free money.

    • Even though Bill Shorten has surprised to the upside, he remains unelecatable. Labor cannot win with him in charge. Switch To Albo and they win easy. Either way the end of the bubble is likely already in the past and downhill from here

    • thanks. If only our government, institutions and regulators also viewed housing as primarily one of need (for shelter) and not the plaything for rent-seeking financiers and pseudo entrepreneurs.

      • innocent bystanderMEMBER

        yeah, seems to depend on the suburb.
        was surprised at that post the other day, Core Logic?, that said top 25% quartile only dropped 1% in the last year.

      • This is what I’ve observed too… despite my belief that prices in Perth still have a long way south to go, we are looking at buying in the near future.. probably SOR, but it depends on whether our low ball offers get accepted. To date, they haven’t!

      • Not me. Would not live in leederville in a fit. Full of drunk party goers and happy ending massage joints. (thats what i heard, not that ive been there … )

  5. Jake GittesMEMBER

    Note the way the newspaper headline taps into the vast culture of Strayan entrepreneurship: “earning thousands of dollars a week without lifting finger” It’s the same spirit of entrepreneurship which makes Strayans dedicated to pokies and horses.

  6. Ross ElliottMEMBER

    As a resident property owner of Auchenflower (named in the report) I “want to believe” due to understandable self interest. But the reality is that properties are taking longer to sell and exuberance is out of the market. The reason being that Qld FT jobs growth is anemic. Qld added just 11,900 (yes, that’s all) additional FT jobs in the four years to July 2017. In NSW that number was 204,400 in the same period, and in Victoria it was 172,800.

    • drsmithy

      Always ask if it was a buyers bid or a vendor bid ?

      They only ever quote the vendor bid for obvious reasons.

      Agent says, ‘Sub division potential’……..is a 550/600 mtr block worth $600k in the area ?… or bulldoze and pay $975,000 for a block of land and build your own mansion to compete with your neighbours……what are they worth ?

      Have fun.

      • A 600 block is probably ca. $500k in the area, but we’ve no interest in subdivision (except maybe just before we move out in twenty years). We want a large block for a large yard for two young kids.

        Wouldn’t buy it to bulldoze and build new, it’s not worth it for that. There’s an 1800m^2 block in a new development on the river over in Kenmore for ~$650k for that scenario.

        We’re looking for a home not a house.

  7. Maybe so. But rents are tanking. Just offered 800 a week on a property advertised at 850. In 2012 it was rented out at 990 a week. Another one just had a price drop to ask 1050 a week. Currently rented out at 1300 a week. If prices are booming, there’s nothing but hot air underpinning it.

  8. Capital City Home Price Index from Mar 2011

    It’s a pity the graph didn’t start from before the GFC, say in 2007. Took many, many years before Brisbane property reached 2007 prices again. Still, rather Brisbane than Perth IF they were the only choices.

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