Brisbane home values are rising faster than southern giants, latest data shows, with soaring demand set to drive prices up even further as RBA keeps rates at record lows for another two years.
Brisbane is set to benefit off the Reserve Bank board keeping the official interest rate on hold at 0.1 per cent at its May monetary policy meeting Tuesday, even if other capitals see home value growth taper off, according to CoreLogic research director Tim Lawless.
Brisbane is expected to continue to see strong buyer demand given its relative affordability compared to major southern capitals.
Greater Brisbane’s relatively more affordable median dwelling value of $558,295 – compared to the high cost of Sydney’s median at $950,457 and Melbourne’s $744,679 – meant the region would continue to see strong buyer demand with rates at record lows, he said.
He knocked back any talk of a bubble emerging in the property sector, saying it was a “typical comment when we’re in a strong phase of growth”.
“The reality is what’s driving housing prices to rise so quickly is record low interest rates and the fact that we’ve seen such a significant consumer improvement. and there’s extremely low advertised listing numbers which means buyers feel a sense of deeper urgency. We’re still seeing housing values rising very quickly but not as much as last month.”
Mr Lawless said “housing has become less affordable” in some places during the unprecedented surge in demand, but “the logical outcome” was more affordable areas like Brisbane would still see strong demand.