Australia’s house price bust has well and truly broadened beyond Sydney and Melbourne, with Brisbane now joining in the rout.
As shown in the next chart, Brisbane’s daily dwelling values index has now fallen 1.8% from its mid-June peak, with prices down 0.7% so far in August:
The rate of price growth across Brisbane plummeted after the Reserve Bank of Australia (RBA) first hiked interest rates on 3 May, as illustrated in the next chart:
Brisbane’s quarterly dwelling value growth has slowed sharply from +6.0% on 3 May to -1.3% on 16 August. That’s the sharpest decline in growth out of the five major capital city markets.
And with Australia’s three largest markets all falling in value, the 5-City aggregate dwelling values index has also fallen 3.5% from its peak.
Adelaide and Perth are the remaining hold outs. But even across these two markets, quarterly price growth is now slowing fast in response to the RBA’s aggressive rate hikes:
Indeed, prices in these two markets had only grown by 0.14% (Adelaide) and 0.05% (Perth) over the first 16 days of August, suggesting momentum is grinding to a halt.
With the RBA expected to continue hiking rates for the remainder of this year, price falls are likely to continue across Sydney, Melbourne and Brisbane, and will soon spread across the smaller capital cities and regions.