Aussie house prices in Brisbane are in a long-term slump, according to property agent Zillow.
The latest data showed the median price of a single home in the Brisbane area rose by 3.8 per cent in August.
The average price of the average house in Sydney rose by 4.4 per cent.
Advertisement The median price in Melbourne also rose by 5.1 per cent, with Brisbane’s price falling by 6.4 percent.
Zillower says the average price in the region is now $7,933.
It is the worst drop in five years, according the company, and comes after the Australian dollar was last week down nearly 1 per cent against the US dollar.
“The biggest drop in price has been in Sydney,” Zillows CEO Mark Legg said.
“The other big cities, particularly Melbourne, have seen some good price increases.
The Brisbane area is the biggest loser.”
Mr Legg says the latest figures show Brisbane’s housing market is in an “unhealthy state”.
“The housing market in Brisbane is in a state of crisis, as is the housing market nationwide,” he said.
“There is no clear explanation for the strong price rises, but it is clear that the market is being driven by a very large number of very young people who are driving up demand for properties in Brisbane.”
While prices in the state have declined in the past couple of years, Mr Leeg says that trend is set to continue.
“[The decline] is just one more sign that the supply and demand is very much in balance,” he added.
Australia’s property market is still a mess, according a recent report by the Australian Council of Trade Unions.
The study, commissioned by the council, found that only 17 per cent of all Australians owned a home, and that prices were up more than 12 per cent since 2009.
In a bid to fix the problem, the Australian Government announced a housing affordability target in May 2020, which was criticised by the industry and the opposition.
A new report by property group Lend Lease says the goal of the target is to keep prices in line with the rest of the economy.
But the report also points out that the target doesn’t go far enough, and suggests a number of changes could be needed.
For example, it says it could be possible to target rents.
And Lend said in a statement that the report does not consider that a new housing affordability goal is a “real solution” to the problem.
Mr Legg admits the situation is not perfect, but says there is room to improve the market.
Zillow’s Mark Leff says Brisbane is facing a serious problem in terms of affordability.
He says the area has “further to go” before prices can return to the $30,000 to $40,000 range that they were in 2013.
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