Brisbane home prices drop for the first time in more than two years

Brisbane’s home prices have fallen for the first time in more than two years, but it will do little to ease the housing affordability crisis.

The latest PropTrack Home Price Index revealed that Brisbane’s median home price fell 0.04 per cent in December after 25 months of relentless growth.

House values fell 0.02 per cent while units decreased 0.12 per cent in December.

But the Queensland regions continue to power ahead, recording a combined home price increase of 0.05 per cent, with houses increasing 0.17 per cent and unit values falling 0.38 per cent.

Brisbane’s home prices have dropped for the first time in 25 months, with a small 0.04 per cent dip in December.

REA Group senior economist and report author Anne Flaherty said that while December can be an unusual time of year for property prices, the results may indicate a slower rate of price growth going into 2025.

“I think there’s a lot of factors behind that,” she said.

“Interest rates have been very high for over a year now – they’ve been at that 4.35 per cent cash rate and that’s impacting borrowing capacities.

“And then, of course, we’re seeing the cost of living is persistently high.

“A lot of buyers are reaching that point at which they can’t really offer any more.”

Ms Flaherty said despite a larger decrease in unit prices in December, unit price growth vastly outperformed house performance in 2024.

Over the past 12 months, house prices in Brisbane had increased by 10.63 per cent to a median value of $972,000 while unit prices have shot up by 15.36 per cent, to a median value of $666,000.

“More and more people are being priced out of purchasing a house so we’re seeing more people looking to purchase units,” Ms Flaherty said.

“It’s actually quite unusual. We typically see houses outperform units for price growth, and in most capital cities, we have seen houses do better than units.

“But Brisbane is one of the exceptions.”

PropTrack economist Anne Flaherty said home prices remained competitive in the more affordable suburbs, with the price drop originating in some of Brisbane’s more expensive spots.

Of the capital cities, only Perth and Hobart recorded home price increases in December, up 0.39 per cent and 0.03 per cent respectively.

The biggest monthly falls were in Melbourne (-0.53%) and Sydney (-0.29%).

Nationally, home prices fell 0.17 per cent in December, the report revealed.

But it will be cold comfort for buyers, with Brisbane home prices soaring 11.35 per cent in 2024 and a whopping 78 per cent since the start of the Covid-19 pandemic in March 2020.

The median home price in the River City is now $863,000 — $83,000 more than Melbourne and $243,000 less than Sydney.

The median home price – units and houses combined – across the combined regions is now $705,000.

And it is no longer the Gold Coast and Sunshine Coast that is leading the pack, with home values in Townsville up 26.25 per cent in 12 months to $499,000.

Hot on its heels was Central Queensland, where home values have increased 22.86 per cent in a year to $493,000.

The Mackay-Isaac-Whitsunday region is also clawing its way back after being stuck in the mining downturn doldrums, with home values up 15.97 per cent to $516,000.

Rounding out the top five regions for price growth was Ipswich, up 15.62 per cent to $718,000, and Darling Downs-Maranoa, up 13.12 per cent to $456,000.

Annual price growth in Cairns has also exceeded that of the Gold Coast (+9.54 per cent) and Sunshine Coast (+6.69 per cent), with home values there up 10.05 per cent to $565,000.

Townsville is the region now leading the way in terms of rising home prices, having increased by 26.25 per cent annually.

Ms Flaherty said that many of the places that recorded home value decreases in December were found in the wealthier markets, with more affordable areas remaining competitive.

But she said Brisbane had shown incredibly strong growth since the Covid-19 pandemic, thanks to a growing and migrating population causing higher demand.

“I think that population growth has coincided with a period in which the speed at which we’re building new housing is starting to slow down,” Ms Flaherty said.

“Which means that we have an issue where demand has been exceeding the supply of homes for sale.

“And that’s, I think, been the key factor that’s pushed the prices up.”

***Qld’s Top Performers of 2024***

Annual Growth/Median home price now

Townsville 26.25% $499,000

Central Queensland 22.86% $493,000

Mackay-Isaac-Whitsunday 15.97% $516,000

Ipswich 15.62% $718,000

Darling Downs-Maranoa 13.12% $456,000

Brisbane 11.35% $863,000

Cairns 10.05% $565,000

Gold Coast 9.54% $958,000