Brisbane leads August recovery as Melbourne and Perth record weakest mainland monthly change in dwelling values

Brisbane dwelling prices bounced back 1.5% over the month of August, according to RP Data.

The median dwelling price in Brisbane is currently at $429,000 – up 1.7% for the quarter and 2.5% for the year.

RP Data’s Tim Lawless says the jump is the most significant turnaround in market conditions.

“Brisbane’s housing market has been underperforming since the onset of the GFC with home values still almost 10% lower than their previous peak which was back in November 2009,” Lawless says.

“The strong result for August was evident across both the detached housing and unit markets and may potentially mark a positive turning point for Brisbane’s housing market.”

Brisbane prices are 3.2% ahead of their previous trough.

RP Data’s Cameron Kusher recently said he expects  a focus on Brisbane in coming months as Melbourne and Sydney increase at a greater pace leaving Brisbane more affordable.

A recent HIA report found housing affordability has increased 10.4% over the June quarter in Brisbane.

Across the eight capital cities dwelling prices increased 0.5% which Lawless says is a welcome sign after the strong growth conditions of previous months fuelled renewed debate around the sustainability of Australia dwelling values.

“The half a per cent gain over the month of August is a much more sustainable rate of growth and will be a welcome turn of events for policy makers,” he says.

“While the recent surge in dwelling values has caused some renewed debate about an Australian housing bubble, it is important to remember that the average annual capital gain over the past decade has been just 4.3% across the combined capital cities. In Sydney the annual rate of growth has seen a much lower decline of 2.4% which is well below current inflation.”

He predicts there will be strong housing market conditions this spring.

“Housing market conditions are looking set to provide what could be described as a near-to perfect spring season with the number of homes currently available for sale around 15% lower than a year ago.