Brisbane House Prices Lowest Among Australian Capital Cities

Brisbane House Prices Lowest Among Australian Capital Cities

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A series of contributing factors including the devastation of the Queensland floods and a general trend of economic declines over the last few years have converged to pull down the price of home in the city of Brisbane. In fact, reports indicate that it is now the cheapest place to purchase a property among all of the major cities on Australias mainland.

According to figures released by Australian Property Monitors, the March quarter showed average house prices in Brisbane at $448,669. The prices in Adelaide, in contrast, were at $452,546.

During the same period, the median housing prices across all of the capital cities excluding Canberra experienced declines. Brisbanes 2 percent drop was, by far, the highest when compared to the other cities. There is really no question that the floods played a significant part in how the home prices have developed over time. At this point, the city has to deal with a largely depressed housing market -- not a good sign for Brisbanes economic stability.

Yet, prior to the acceleration caused by the floods, the price decreases had been a part of a general trend in slow and steady decline that had been affecting Brisbane house prices for several years. There was a 4.3% decline over that year, a full twelve months of lowering prices.

During the last year, Perth also experienced declines in their housing markets. There the prices declined 4.3% as well. The differences between the cities, though, lie in the fact that the market in Perth experienced phenomenal growth during the middle of the last decade. In many instances, the prices in Perth were inflated. In other cities such as Melbourne and Sydney, the medial prices on residential properties experienced 2% in growth during 2010.

Senior economist for the Australian Property Monitors, Andrew Wilson, commented about the situation, saying that the situation in Brisbane could become far more problematic than it did. He also indicated that he thought the current prices were presently at the low end of the overall cycle of pricing.

He said that consumers had been expressing lower confidence in Brisbanes housing market for some time and the weaker performance of the Queensland economy as a whole have certainly contributed as well during the last few years.

The floods in Brisbane had a definite impact on the housing prices and contributed to where they ended up in March. Wilson suggested that the effects of the disaster were certain to influence the market for the remainder of 2011 at the very least.

Wilson also said that the post-flood construction effort and a upward trend in the mining industry were on a course to influence the regions economic recovery and the overall condition of the real estate prices in Brisbane.

The bottom line, according to Wilson, is that the city is unlike to experience any other serious price drops and while the following quarter will be a flat period of growth. There are expectations of growth in the subsequent term.

For some new home buyers the lower house prices have been a welcome opportunity to get a property in the Brisbane area. It is opening doors for more Australians who want to sink their teeth into the housing market while it is more affordable. In some respects, these buyers are hoping the prices stay low for a while so more can get into the Brisbane market.

There are analysts watching the markets to see where the prices will go. Many are looking to Sydney and Melbourne as indicators of where Brisbanes prices may follow. This has traditionally been a good plan since Brisbane has tended to follow the performance of those markets, eventually.

About the Author:
To find the most cheap mortgages Australia you need to locate all the choices offered by other home loan brokers in the country as well. It is referred because if you want to look for mortgage broker Melbourne then to compare the prices and packages with all other offers in the same city so you can get the exact match for what you are looking for.



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