Brisbane unit owners face falling equity amid sharp drop in values

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While investors in Sydney are basking in the afterglow of flourishing property values, things are not so rosy for investors in Brisbane’s unit market.

According to the latest report from Domain, median unit price dropped by a sharp 4.2% over the December quarter to $357,315. This follows a weakening trend for most of 2014 the report noted.

Some experts blamed the rising supply in the inner city area of Brisbane (particularly around Fortitude Valley and suburbs within the 4000 postcode) for the weak showing.

In addition, the uncertainties surrounding the election are also weighing on sentiment and adding further jitters in the market.

“Brisbane’s economy is waiting for significant improvement,” says Andrew Wilson, senior economist with Domain. “That will continue to drag on the market and it will be those value perceptions that keep kicking it all along.”

It’s not all bad news for Brisbane, however. Despite of the poor showing in the unit sector, median house price rose solidly over the same period, surging by 1.5% to $489,681. Over the year ending December, median house price grew by a healthy 6.1% while units plunged 3.3%.
Nationally, median house price rose 2.1% over the December quarter and by 7.1% over the year, while unit price recorded a quarterly gain of 1.7% and annual increase of 6%, according to Domain.


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  • V says on 30/01/2015 09:28:12 AM

    Hi Nila,

    I just wanted to ask how the rising supply in fortitude valley could be causing median price to drop last quarter, yet the suburb profile report on YIP website indicates fortitude valley increased 4.74% last quarter. Confused...

    Thanks in advance.

  • Nila says on 30/01/2015 11:27:34 AM

    Hi V,
    The report actually states that the median unit price in Brisbane as a whole dropped 4% according to Domain. There were oversupply concerns in the inner city Brisbane including Fortitude Valley.
    The report didn't say that values dropped because of oversupply in Fortitude Valley. It says experts blamed rising supply in inner city areas including Fortitude Valley for the poor performance.

    The performance of Fortitude Valley wasn't taken in isolation. The median unit price as reported by Domain took the whole Brisbane city as a whole, so other issues were also at play.

    Also worth noting that the data on YIP website was from RP Data which can be different with Domain at times.
    Hope this helps.

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