Historically low listings are driving continuing Brisbane housing price hikes as unit price growth in the city continues to outpace freestanding houses.
The Cotality Home Value Index (HVI) found Perth and Brisbane house prices were pulling ahead of the larger capitals, with values up 4 percent and 3.5 percent respectively through the September quarter.
Cotality’s research director, Tim Lawless said there was a “severe lack of advertised supply” of dwellings.
“The number of homes for sale at the end of September was about 53 percent lower than average in Darwin, 45 percent below average in Perth and down 31 percent in Brisbane,” Mr Lawless said.
“At the same time, estimates for quarterly home sales are tracking above average, demonstrating a clear disconnect between demand and supply.”
Mr Lawless said most cities were experiencing stronger growth rates for houses than units, with capital city values up 2.4 percent and 1.7 percent respectively in the quarter.
“However, Brisbane is the outlier, with unit values consistently rising at a faster pace than house values over the past seven quarters due to a severe supply shortage,” he said.
The Cotality HVI showed the September quarter results represented the strongest monthly rise in national dwelling values since October 2023 at 0.8 percent.
“On a quarterly basis, the national HVI increased 2.2 percent, up from a 1.5 percent lift in the June quarter and double the 1.1 percent increase seen over the three months to March,” Mr Lawless aid.
“In dollar terms, the September quarter rise was equivalent to a $18,215 increase in the median dwelling value.”
While home values are rising across the board, the strongest growth had moved from lower-priced housing to the “broad middle”.
This was attributed to increased borrowing capacity off the back of lower interest rates, supporting demand at higher price points.
During the month of September, capital city listings across the country tracked about 18 percent below the previous five-year average.
“The disconnect between supply and demand has seen selling conditions strengthen,” Mr Lawless said.
“Auction clearance rates have been holding around the 70 percent mark since mid-August, up from an average of roughly 63 percent through the June quarter and 62 percent in the three months to March.
