Weekly · FL Post Wire
Brisbane is now just $14k away from dropping below the million-dollar median home price level. Brisbane is clinging to its million-dollar property status by a $14,000 thread as a brutal market correction wipes as much as $77,000 from values in just seven months – with worse set to come. The relentless property downturn has stripped more than $62,000 from the typical Brisbane home to leave the median dwelling value at $1,014,000, putting the Queensland capital on track to officially tumble back into six-figure territory by February 2027 – or sooner if price falls accelerate following another interest rate rise.
Houses have borne the brunt of the downturn, with Brisbane house medians plunging 6.3 per cent from their March peak to $1,150,000 – an estimated $77,321 wipe-out that’s pushed annual house price growth into reverse (-0.8 per cent). An aerial view of Victoria Park, the intended site for the new Olympics stadium to be built for the 2032 games. The city is widely expected to see huge demand leading into the games.
Picture: Dan Peled / NewsWire The sharp correction marks an abrupt end to the river city’s pandemic run, with dwelling values sliding 0.4 per cent in October to sit 5.8 per cent below their peak, according to the latest Realestate.com.au Home Price Index released Monday. Brisbane’s drop is steeper than the national benchmark, which fell for a seventh consecutive month to sit 4.3 per cent below its peak and 1.9 per cent lower than a year ago. Across the country, stand-alone houses have shed an average of $46,434 from their high point- meaning Brisbane homeowners have bled over $30,000 more than the Australian average.
Realestate.com.au senior economist Eleanor Creagh said former market leaders Brisbane (-5.8 per cent) and Perth (-5.7 per cent) are now feeling the squeeze as borrowing capacities hit an affordability wall. “Their reversals follow years of exceptional growth, as higher interest rates and stretched affordability now take a toll on buyer demand,” Ms Creagh said. Realestate.com.au senior economist Eleanor Creagh.
Picture, John Gass “Spring has brought more choice for buyers, but not the usual lift in momentum. Softer auction conditions, longer selling times and subdued sales activity suggest buyers are cautious. In this market buyers have more negotiating power, however higher mortgage rates continue to limit what households can borrow and pay.” Many of Queensland’s regional markets are so far defying the capital’s slide, dominating the state’s top spots for annual price growth as buyers hunt in affordable pockets of the state.
Darling Downs – Maranoa led the surge with dwelling values jumping 7.6 per cent over the past year to a median of $552,000. Toowoomba was close behind with a 7.4 per cent annual surge to $798,000, while Queensland – Outback notched a 6.4 per cent lift to $299,000. Townsville ($627,000) and Central Queensland ($607,000) also held strong, delivering 6.2 per cent and 6 per cent annual gains respectively.
Brisbane units have also provided a rare line of defence against steeper losses, with values falling 0.3 per cent in October to a median of $810,000 – which is -4.8 per cent from peak – though still 3.2 per cent more than a year ago (+$25,116). An aerial of the 10K race on the Gateway Bridge in the Bridge to Brisbane. Picture: Events Management Queensland.
Ms Creagh warned the broader capital city correction could linger well into next year if interest rate pressures refuse to abate. “A further interest rate rise would reinforce the downturn already underway with softer housing market conditions likely to continue into 2027,” she said. “Further price declines are likely as higher borrowing costs, weaker confidence and the cumulative impact of previous rate increases continue to weigh on demand, particularly where affordability has deteriorated most.” Home Price Report: Greater Brisbane All Dwellings Current Median: $1,014,000 Monthly Change (October): -0.4% Change from Peak: -5.8% (-$62,437) Consecutive Monthly Falls: 7 straight months Buffer to $1,000,000 Threshold: $14,000 Houses Current Median: $1,150,000 Monthly Change (October): -0.4% Change from Peak: -6.3% (-$77,321) Annual Change (YoY): -0.8% Units/apartments Current Median: $810,000 Monthly Change (October): -0.3% Change from Peak: -4.8% (-$40,840) Annual Change (YoY): +3.2% (+$25,116) (Source: Realestate.com.au Home Price Report)
Source: Real Estate
