Brisbane property values have just recorded their largest drop ever, barely seven months after peaking. Following a pandemic population surge and increase in values of more than 43 per cent, Greater Brisbane home values hit a record high on June 19, 2022, soon after the Reserve Bank of Australia (RBA) commenced its as-yet unended rate-tightening cycle.
However, CoreLogic's Daily Home Value Index (HVI) shows Brisbane's home values dropped 10.9 per cent between the peak in June and January 28, the largest percentage fall on record. CoreLogic head of research Eliza Owen said the new benchmark followed hot on the heels of the national index's record decline of 8.6 per cent.
However, prices are still historically high at 27.9 per cent above the previous trough in August 2020. Owen said Brisbane's housing market is adjusting to a sharp increase in borrowing costs over the second half of 2022, which have likely hit buyers hard off the back of extraordinary price rises.
The median dwelling value in Brisbane has increased from $506,553 at the onset of COVID-19 in March 2020, to $707,658 at the end of 2022. Despite the large decline from peak, Brisbane maintains the third highest gain in value of the capital cities since the start of the pandemic. Only Adelaide and Darwin, which are 42.8 per cent and 29.6 per cent higher respectively than at the onset of the pandemic, have performed stronger.
Rent values increased a further 13.4 per cent in 2022, suggesting an underlying shortage of available housing across the city. "While Brisbane property values are likely to fall further in 2023, it is possible the rate of decline will continue to slow over the coming months," Owen said.
