Units have dragged down Brisbane’s average home price

first_imgMore from newsMould, age, not enough to stop 17 bidders fighting for this homeless than 1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor7 hours agoBrisbane has seen major growth in its unit market in recent years, especially across the inner city. Picture: Richard WalkerThe results came after Brisbane finished off the year with a December quarter rise of 2.2 per cent for average residential price – a stronger result than Setpember (0.2 per cent) and June quarters (1.1 per cent).The mean dwelling price for Queensland was $492,200, according to ABS, compared to $864,900 for New South Wales and $656,800 nationally.Housing Industry Association chief economist Dr Harley Dale said there was a wide gap between growth rates across houses versus attached dwellings and also between the eight capitals.“The growth rate for attached dwelling prices is far slower than for existing houses, while Sydney (10.3 per cent) and Melbourne (10.8 per cent) price growth is way of ahead of other markets,” he said. Brisbane’s average dwelling price has been affected by a drop in the unit market.A MAJOR slowdown in the average price of attached dwellings has dragged down Brisbane’s residential price index.The average price of homes sold in Brisbane rose 3.8 per cent last year, dragged down by unit price growth hitting negative territory (-0.3 per cent), according to the Australian Bureau of Statistics Residential Property Price Index.This came despite the house price index for Brisbane seeing 4.6 per cent growth. Both unit and house results were still over four percentage points behind than the national house (8.9 per cent) and attached dwelling (4 per cent) growth rates Mega mansion hits the market for $14m Blink-and-you’ll-miss-it suburbs Get The Courier-Mail’s Realestate newsletter daily for free HIA chief economist Harley Dale“Sydney and Melbourne represent 40 per cent of Australia’s population and some concern regarding the trajectory of house price growth in these two markets is warranted.“Elsewhere, people still scratch their heads when it comes to a supposed housing price ‘boom’ because that simply hasn’t been their experience this cycle, even allowing for some recovery in prices in recent times.”But he warned against a blanket crackdown on lending to tame the market.“On the same day as we have received an update on dwelling prices there has also been speculation regarding some tension between members of Australia’s Council of Regulators, plus an (appropriate) questioning of banks’ out of cycle interest rate hikes,” he said.“People can make of that what they will, but let’s not lose sight of the main goal. Yes, there is some need to tighten lending conditions for some Australian housing markets in terms of geographical areas and dwelling types. However, a blanket tightening of lending conditions – as now seems to be emerging again – is the wrong policy and risks damaging Australia’s financial stability. That is the very opposite to the ideal outcome authorities want to achieve.”last_img

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