Latest figures show Brisbane has hit a turning point with borrowing power plunging as home prices surged $171,500 in a year - almost double average salaries.
Brisbane house prices jumped over $182k in a year as overall home prices saw a 17.5 per cent spike.
The PropTrack Home Price Index, released Friday, shows Brisbane recorded the second-strongest capital city growth behind Perth, with median dwelling values rising 17.5 per cent to $1.08 million.
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This four bed home at 14 Shordley Street, Chermside West, sold for $1,205,000 on April 30.
Prop Track senior economist Eleanor Creagh has warned that borrowing power could fall by up to 10 per cent this year if further rate rises materialise.
House prices jumped $182,200 over the past year to $1.234 million, a 16 per cent rise, while unit values climbed 21.8 per cent, or $154,100, to a median of $861,000.
The data show SA4 regions surrounding Greater Brisbane continued to surge, with some of the strongest dollar gains recorded in outer-metro corridors.
Ipswich led the state’s growth hotspots, with median home values rising 21.5 per cent, or about $160k, to $913,000.
Logan–Beaudesert climbed 20.7 per cent, adding roughly $160k to reach $942,000, while Darling Downs–Maranoa rose 20.4 per cent to $557,000.
Toowoomba increased 19.9 per cent, lifting values by over $130k to $813,000, and Moreton Bay South also surged 18.8 per cent, adding about $170,000 to break into million-dollar territory at $1.073 million.
That pace was already under pressure, according to PropTrack senior economist Eleanor Creagh, who warned borrowing power could fall by up to 10 per cent this year if further rate rises materialise.
A 2-bedder at 401/83 Lawson Street, Morningside, sold for $899,000 on April 30.
This 3-bed townhouse at 4/25 Lang Street, Sunnybank Hills, sold for $875,000 on April 30.
“Slower growth and further price declines are probably likely in the months ahead. It looks like we’ve approached a turning point,” she said.
“If there are two further rate rises in the second half of this year, that could be a 10 per cent reduction in borrowing capacity, and prices are not falling.”
Ms Creagh said tighter conditions could shift power back toward buyers.
“Where it is good news for buyers is less competition, lower clearance rates, buyers regaining negotiating power,” she said. “That can mean better outcomes, even if prices don’t fall much.”
The Index showed regional Queensland still firing, with dwelling values rising 13.9 per cent to $832,000 over the past year.
Gold Coast dwelling values rose 12.28 per cent to $1.199 million, with house prices up $182,200 to $1.451 million and units up $154,100 to $992,000.
Townsville house prices rose 15.11 per cent to $668,000, while units surged 24.28 per cent to $517,000.
Cairns recorded solid growth, with house prices up $88,000 to $741,000 and units rising $57,000 to $441,000.
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