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:
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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:
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Never let the truth get in the way of a good bubble.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
