• 5:30AM Monday Feb 13, 2012

Queensland

You are here: Home Queensland Queensland Property Article

Search businessday:

Search in:

Home prices extend their run-up

Chris Zappone
February 26, 2010

Home prices extended their rally into 2010, adding to the difficulties faced by first-time buyers struggling to get into the market.

National home prices increased 1.8 per cent in January, according to RP Data, taking them 11.8 per cent higher in 12 months.

Brisbane homes rose 1.8 per cent to a median price $440,000, while in Adelaide they jumped 3.2 per cent, to a median of $379,600, in the three months to January.

Over the same period, Darwin home prices rose the most in January, jumping 4.6 per cent to $475,000, while in Perth they fell 0.6 per cent to a median price of $472,500, RP Data said.

Home prices in Melbourne rose 4.3 per cent in the three months to January to a median price of $455,000 in January, while in Sydney they nudged up 1.7 per cent to $494,500, RP Data said.

Over the same period, Darwin home prices rose the most in January, jumping 4.6 per cent to $475,000, while in Perth they fell 0.6 per cent to a median price of $472,500, RP Data said.

Canberra values rose 4.3 per cent to a median level of $489,250, while in Hobart values were down slightly by 0.1 per cent to $320,000.

Home loans rise

The rise in home prices is mirrored by rising mortgage lending, according to private lending figures released today by the Reserve Bank. Notably, business borrowing continued its slide.

The latest news of home price rise comes amid increasing signs housing affordability is out of the question for many first-home buyers.

''My wife and I are recently married and are looking to start a family,'' said Mr O'Farrell. ''We are currently renting but would like to buy a house as soon as possible. Unfortunately at the moment this is looking like it will not be possible.''

RP Data national research director Tim Lawless said January's result suggests the residential market has begun the year with a degree of confidence.

"Week-on-week, we are seeing an increase in the number of new property advertisements coming to the market," he said.

"Whilst new stock has been increasing rapidly, the total number of properties available for sale has been falling which is an indicator that buyers are for the time being outweighing sellers and new supply is being quickly consumed," Mr Lawless said.

czappone@fairfax.com.au

BusinessDay

8 comments so far

  • these levels of increases are crazy. i wonder when its going to stop.

    Commenter
    blue
    Location
    bris
    Date and time
    February 26, 2010, 1:05PM

  • 1.8% per month is 21.6% per year!
    So that $475 000 house will be $577 600 by December this year.

    If this keeps going, in 3.5 years, the median house price will be over a million dollars! My pay is not going up by 20% per year!

    Surely now someone at Brisbane City Council and Queensland Government must be pressing the "Housing Affordability Emergency Crisis" button to set off the alarms. We can't all live in social housing... we will have to live in shipping containers at the Port of Brisbane if this keeps going.

    Commenter
    Shipping Container
    Date and time
    February 26, 2010, 2:04PM

  • Just because the median price is $440,000 does not mean you cannot get a house around $300k. There is one thing for sure, if the state or federal Govt steps in to try to adjust prices, more people will suffer than not. Housing should go up over time, because the only thing worse than house prices rising is house prices crashing down.

    Commenter
    Jondalar
    Location
    Brisbane
    Date and time
    February 26, 2010, 2:42PM

  • Yes, the median price is higher, but so are the sizes of houses. Has anyone thought of building smaller, more affordable houses? It seems to me that every house in my street that is demolished is replaced by a 6 bedroom McMansion. Not at all sustainable either environmentally or financially. Families are becoming smaller, so build smaller houses, not larger, more expensive houses. I'm sure I'm being way too simplistic, but surely this approach would do something to alleviate financial stress.

    Commenter
    Daniel Brown
    Location
    Brisbane
    Date and time
    February 26, 2010, 3:45PM

  • Don't worry fellow Citizens, I am planning to run in the Senate, and ruffle a few feathers.

    Buddy Rojek, CPA

    Commenter
    Buddy Rojek, CPA
    Location
    Melbourne
    Date and time
    February 26, 2010, 4:21PM

  • Yes the median is $440k, but the definition of a median price is simply the middle price.
    Therefore, as Jondalar pointed out, there are still houses cheaper than $440k - it is not an indication of entry level prices.
    Yes it may be entry level if you're looking at buying inner city, so go further out.
    Daniel Brown, the size of houses is certainly getting bigger but i fear this may be for a valid reason - kids are living at home for longer and longer these days. As parents, we can no longer assume our children will move out when they are 20 years old. The whole demographic is shifting and it's difficult to know which way to go.
    Affordability is certainly not an issue that is going to go away.

    Commenter
    Jane Doe
    Location
    brisbane
    Date and time
    February 26, 2010, 4:29PM

  • The Median house prices will continue to rise while Labour governments stifle development with increased government charges and red tape. Then again, in Queensland didn't a Labour government stop infrastructure development which also stifled housing development. Just wait until the USA, China and India start cranking up their economies. Then housing prices will come under increased pressures. The only hope for subdued prices will be banks lending practices and the governments increasing land supply and reduced development costs to stave off demand. Unfortunately, governments are typically inept at dealing with this type of situation as the current Queensland State Government hasn't got an Anna Bligh clue how to prepare for this inevitable situation. May I suggest that Premier Bligh start to create jobs in the bush to stop the population drift into the south east corner and at the same time at least try to keep one of her election promises regarding creating jobs.

    Commenter
    The Voter
    Location
    Brisbane
    Date and time
    February 26, 2010, 11:13PM

  • I wouldn't worry too much about house prices going up - they always have.

    I remember struggling to buy a house in 1972. They had increased massively in the previous 12 to 18 months and we didn't think we were ever going to be able to buy one. Land prices were going up $100 per week, which we can laught at now. However we managed to buy a house and land package for $17350 on my gross $3185 annual salary! There was no ensuite, no family room, no garage and only three bedrooms. We did manage one upgrade. Laminex kitchen cupboards instead of Masonite for an additional $170!!!

    We struggled for years but it gradually got easier with inflation increasing wages over time.

    To me far too many young couples these days are aiming too high with their expectations for their first home. They would also find it easier to save if they didn't try to keep up with the Joneses. These days they seem to have to have two cars, a microwave, a dishwasher, a large TV etc, etc - they can come later.

    Commenter
    Gus
    Location
    Brisbane
    Date and time
    February 26, 2010, 5:31PM

Make a comment

You are logged in as [Logout]

All information entered below may be published.

Error: Please enter your screen name.

Error: Your Screen Name must be less than 255 characters.

Error: Your Location must be less than 255 characters.

Error: Please enter your comment.

Error: Your Message must be less than 300 words.

Post to

You need to have read and accepted the Conditions of Use.

Thank you

Your comment has been submitted for approval.

Comments are moderated and are generally published if they are on-topic and not abusive.

Post another comment

Join the conversation

You're the only person reading this now. Tell your friends

Comment on Business Day.
8 comments.

Latest Comment

I wouldn't worry too much about house prices going up - they always have.I remember ... 

Gus, Brisbane See comments (8)

Story Tools