Greater Brisbane house prices have stalled following six years of continuous annual growth, with prices flatlining over the year according to Domain Group's quarterly house price report.
Brisbane house values slipped 1.1 per cent lower in the first quarter of this year and are down 1.3 per cent over the last 12 months.
“Homeowners may not be reaping equity gain but flat house prices is a better outcome than a fall, which is what’s playing out across most capital cities,” Domain senior research analyst Nicola Powell said.
However, the markets remain fragmented, with apartments continuing to underperform free standing homes, a trend running since mid-2012.
Brisbane apartment values remain 12.2 per cent below their peak 2010 conditions with the current oversupply of new apartments slowly being soaked up.
“Unit prices are 9.6 per cent below the mid-2016 peak, with buyers now able to reap the benefits of purchasing at 2013 prices,” Powell said.
“Significant supply numbers have weighed heavily on unit prices. Although listing volumes are shrinking, it has not been enough to translate into price growth yet.”
For now, conditions in Brisbane, the apartment construction market that was first to boom and also the first to decline, remain weak.
• House prices fell 1.1 per cent over the quarter and 0.3 per cent over the year to $563,666
• Unit prices fell 3.7 per cent over the quarter and 5.2 per cent over the year to $372,852
Hopes are growing for the apartment market in the Queensland capital.
A separate report by JLL this month said Brisbane apartment prices and rents would stabilise over the next 12 months.
Moody’s Analytics has also tipped values in Brisbane’s apartment market to recover 0.9 per cent this year.
Brisbane, as well as most part of the state of Queensland, offers stronger capital growth prospects compared to other capital cities across Australia, banking on strong population growth.
Brisbane’s economy is being underpinned by major projects like Queen’s Wharf, TradeCoast, Cross River Rail, the second airport runway and the Adani Coal Mine, with many anticipating jobs and migration boost from these mega-projects in the near future.
“New residents will be further lured by growing job prospects, with Queensland leading the way in March for full-time employment growth,” Powell said.
“Several key projects will provide further economic benefits, both financial and as an employment base.”
“Placing these key factors into context provides a clearer picture of the strong underlying demand for housing from both investors and owner-occupiers.”
Queensland remains the third most popular destination for overseas migrants and is drawing the highest number of interstate movers, with Brisbane capturing the biggest flow of new residents.