Brisbane’s fastest growing and most expensive suburbs for units

The Brisbane housing market has enjoyed a steady year so far this year, with recent signs of increasing buyer activity.

Brisbane’s median house price increased by 1 per cent over the first three quarters of this year, with most of that increase occurring over the September quarter, when house prices were up by by 0.8 per cent.

However, the market usually records its highest growth over the December quarter and is likely to follow that trend this year, as signalled by recent record numbers of late-season auctions.

Although prices for houses have increased this year, unit prices have tracked backwards by 3.7 per cent, reflecting record supply of new inner-city apartments, which has outstripped demand in the short-term.

Although overall unit price growth has been subdued so far this year, a number of suburbs have recorded strong price growth over the year ending September.

The fastest growing suburb for unit prices was Nundah, up by 12.5 per cent over the year to a median of $427,500. Moorooka was up 11.7 per cent to $426,700, Redcliffe up 9.7 per cent to $367,500, Bongaree up 9.3 per cent to $325,000 and in Indooroopilly the median price increased by 8 per cent over the year ending September to $461,750.

The top five suburbs for median unit prices recorded over the six months ending September were Newstead with a median of $820,000, Bulimba $609,500, West End $577,500, New Farm $565,000 and Hamilton $547,100.

Low and falling interest rates have been a key driver of rising buyer activity in the housing market this year. The Reserve Bank will meet next week to decide the direction of rates for the final time this year, until the next meeting scheduled for February next year.

Official rates are likely to remain on hold for the seventh consecutive month after some better economic news over the past month. The national unemployment rate dipped below 6 per cent and the stockmarket has stabilised after a period of volatility. The Reserve Bank is also likely to wait on the decision by the Federal Reserve Bank on United States rates, due later in December, which may have a significant impact on the local currency.

Dr Andrew Wilson is Domain Group senior economist Twitter@DocAndrewWilson​