Melissa Ketchell
THE gap between Brisbane house prices and those in southern states is widening as Sydney and Melbourne prices surge.
Australian Property Monitors Matthew Bell said Brisbane’s lower median price made the market more susceptible to interest rate rises.
Latest data shows residential sales in Brisbane are down 10 per cent, compared with increases of around 15 per cent in southern states.
ABS statistics released on Monday showed Brisbane had the lowest price increase of any capital city, with 2 per cent. The national average was 4.8 per cent, with 5.3 per cent in Sydney and 6.7 per cent in Melbourne.
Global funds manager Rismark chief executive officer, Christopher Joye, said most states had seen good capital growth despite lacklustre housing finance flows.
“This implies that underlying demand and supply-side fundamentals are driving Australia’s housing rebound, as opposed to simply credit,” Mr Joye said.
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Property commentator Michael Matusik said there were several reasons Brisbane’s growth was lagging.
He said low employment growth had hit confidence in the Brisbane market.
“The continuation of the (first-home buyers) boost by the State Government in Victoria in particular is lifting prices there,” Mr Matusik said.
He said in Sydney and Melbourne a high proportion of deals at the upper end of the property market was also impacting on median prices.
Back in Brisbane, a high rental vacancy rate of around 3 per cent was a concern for local investors.
But Australian Property Monitors economist, Matthew Bell, still thinks Brisbane and Perth will see price growth this year.
*Article Sourced from: http://www.couriermail.com.au/property/brisbane-market-trails-the-nation-as-sydney-and-melbourne-prices-surge/story-e6frequ6-1225862259961?from=public_rss
