House prices in Brisbane may continue to disappoint this year amid hopes that 2016 would be the year for property.
A surprise underperformer has been Brisbane’s inner city, with house prices falling 2.8 per cent over the March quarter.
Logan was one of the few areas that did not see price drops, with a slight house price increase of 0.8 per cent.
In the first fall since the September 2014 quarter, house prices across Brisbane fell marginally by 0.05 per cent, and unit prices fell by 0.8 per cent, according to the Domain House Price Report for the March quarter.
Brisbane’s median house price is currently $512,809, while the median unit price is $367,058.
Domain Chief Economist Andrew Wilson says there were expectations of healthy growth for 2016, but at best Brisbane can only hope to match last year’s growth of 4 per cent.
“Brisbane tends to start the year a little slowly, but there were expectations of improvement this year,” he said.
“At best, the market held the line, but it’s disappointing in terms of expectations.”
Strong interest from investors has helped buoy the Logan market.
“When prices are booming in Brisbane or on the Gold Coast we don’t see immediate gains, but within eight to 12 months people start looking at affordability issues and we see a rise in activity,” he said.
“Buyer inquiries from the southern states, and about 50 per cent of our buyers now are investors.”
Redland also saw modest growth over the March quarter, in both house and unit prices. While the area has flown under the radar in the past, Domain’s Dr Wilson said it has started to benefit from its cheaper prices and proximity to the city.
“Rents are high, interest rates are low and it’s just as affordable to own rather than rent.”
March quarter may have been the peak sales dropping off just before Easter.
“From what we’re seeing across the board we definitely feel like the market has peaked.”
A lack of job security and an upcoming federal election have affected the market – problems which Dr Wilson said have affected the Queensland property market in general.