Greater Brisbane unit prices recorded their largest fall in 17 years: Domain

On the back of increasing levels of supply, Greater Brisbane unit prices recorded their largest fall in 17 years in the December 2018 quarter, according to Domain's latest House Price Report.

The report found, this has created a window for buyers to purchase at 2013 prices.

Brisbane unit prices fell 5% over the quarter and 7.9% over the year to $369,882.

Brisbane house prices fell 0.2% over the quarter and 0.1% over the year to $566,058.

Domain Senior Research Analyst, Dr Nicola Powell said: “Greater Brisbane house price growth evaporated by the end of 2018, with prices ultimately flatlining over the quarter and year. This provides further evidence that credit access is not only impacting Sydney and Melbourne, it is now having a marked effect on housing markets that would otherwise be growing.

“A number of factors should provide better foundations for the housing market, as greater job prospects and an improved economic outlook draws residents to the state. Queensland remains a magnet for interstate migrants, which is currently at a 12-year high, and more residents are moving from overseas. Demand is rising, with Domain recording an increase in the number of views per listing.

“Although house price growth has stalled, it is a better outcome than many other Australian capital cities have experienced, with Brisbane proving the fourth best performer, behind Hobart, Adelaide and Canberra.

“A number of dynamics will eventually see Brisbane’s heightened supply of units absorbed. 

“The number of developments under construction, apartment completions and multi-unit building approvals are all shrinking. However, for now the stricter lending environment is stalling a recovery.”