Brisbane’s house price crash biggest in history

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CoreLogic has released new data showing that Brisbane’s housing crash is now the biggest and fastest in history with values down 10.9% in only seven months:

Brisbane house price declines

This follows a pandemic population and price surge, which saw Brisbane home values soar by 43.5% to an all-time high in on 19 June 2022, soon after the Reserve Bank of Australia (RBA) commenced its rate-tightening cycle.

CoreLogic Head of Research Eliza Owen notes that “Brisbane now stands out as one of two capital city markets with record declines, the other being Hobart. Sydney continues to have the largest peak-to-trough falls of the capital city markets (currently at -13.8%)”.

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It is not all “bad” news, however, with Brisbane home values still 27.9% higher than at the previous trough in August 2020:

Brisbane house prices

“Despite the large decline from peak, Brisbane maintains the third highest gain in value of the capital cities since the start of the pandemic” Owen said.

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“Only Adelaide and Darwin, which are 42.8% and 29.6% higher respectively than at the onset of the pandemic, have performed stronger”.

While CoreLogic expects Brisbane property values to fall further in 2023, “it is possible the rate of decline will continue to slow over the coming months”, citing the city’s relative affordability against Sydney and Melbourne, as well as the strong migration into Brisbane and turbo-charged rental growth.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.