Brighter Buying

Market Update: #3 Reasons Brisbane prices will flatten … and why they won’t

by Dan D'Silva, Property Consultant 2 December 2021

Last month Brissie moved to poll position in the house price growth stakes with a 2.5 per cent increase making it the fastest growing of all Australian capital cities.

This compared to a national average increase of just 1.49 per cent, which has cooled since a peak of 2.8 per cent monthly growth in March.

While the percentages seem tiny the hip pocket impact in cash terms can add up to price increases in the tens of thousands of dollars over successive months.

This makes it hard for first time buyers in particular to save a home deposit.

But experts are tipping some changes in the economic environment could slow, or flatten, price growth, giving buyers a chance to catch up.

These three things are worth watching, CoreLogic research director Tim Lawless, told

  1. Affordability limits are becoming increasingly stretched.
  2. More homes are coming on to the market after the slowing of supply during the pandemic.
  3. The government is pumping less stimulus into the economy as the peak pandemic restrictions ease.

But here in Brisbane there is a new form of stimulus – in the form of the 2032 Olympic infrastructure spending – that is beginning to buoy the local economy. So we’re seeing some suggestions that the slow down about to hit southern capital housing markets may not be something we see here in our own backyard.

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