Brisbane home prices have risen for a fifth straight month, increasing by a third of a per cent in May, according to new data.
Market conditions have further improved in May following five consecutive months of price growth.
The May PropTrack Home Price Index released Thursday reveals the market rebound in the Queensland capital is continuing to gather pace, with prices rising another 0.33 per cent in May to be up nearly 2 per cent so far this year.
Brisbane home prices are now only a few months off surpassing their April 2022 peak. Picture: John Gass.
Brisbane home prices are now just 1.5 per cent off the peak they reached in April 2022, at the height of the property boom.
PropTrack senior economist Eleanor Creagh said if Brisbane home prices continued to grow at a monthly pace of 0.47 per cent — the average pace of growth seen over the past three months — they would eclipse that peak by the end of September.
Compared to pre-pandemic levels in March 2020, prices are still a whopping 45 per cent higher, maintaining Brisbane’s spot as the second strongest performing capital city.
The median house price is now $812,000, according to PropTrack, and its median unit price sits at $539,000.
Eleanor Creagh, PropTrack senior economist.
Every market in Brisbane rose in the past quarter, with prices in the inner-city region gaining nearly 3 per cent and Brisbane south up 2.2 per cent.
Every capital city except Darwin recorded increases in home prices in May, with the strongest monthly gains in Canberra and Perth.
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Ms Creagh said strong demand and low housing supply was offsetting the deterioration in affordability from rising interest rates in Queensland.
Every capital city, except Darwin, recorded increases in home prices in May, according to PropTrack’s May Home Price Index. Picture: Richard Walker.
She said the Reserve Bank’s decision to increase the cash rate in May did not impact the rebound in home prices in the state.
“Supply constraints have eased slightly with respect to total stock for sale, but the flow of new listings remains soft,” Ms Creagh said.
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“This is keeping a floor under prices, with sellers benefitting from less competition with other vendors.”
Regional Queensland saw the biggest lift of all the regional markets in May, with home prices climbing 0.32 per cent.
The Gold Coast market has outperformed, recording quarterly growth of 2.93 per cent.
Prices in the regions are now back to a new peak, and 1.42 per cent higher than they were a year ago.
The Gold Coast is the star performer based on quarterly growth, with the median home price gaining 2.93 per cent to $833,000.
“This is testament to the fact stronger housing demand is likely being bolstered by that strong rebound in net overseas migration, ongoing net migration into southeast Queensland, and of course a very tight rental market,” Ms Creagh said.
Toowoomba has also outperformed, with quarterly home price gains of 1.54 per cent.
Auctioneer Jason Andrew auctions a house in Brisbane’s Gordon Park. Picture: Darren England.
Auction activity had also improved and clearance rates remained firm after rising above levels seen in the second half of 2022, she said.
“This was a period when interest rates were rising rapidly and prices were falling in most markets,” she said.
“Although they are at or close to peak levels, interest rates may still rise further and the economy is also expected to slow.
“We could certainly see the pace of price rises slowing if the listing environment significantly changes…but I’d say there’s little to suggest prices will fall again at this point.”