House Prices Continue to Rise in Brisbane

No Major Declines in House Prices, Yet

The post-lockdown house price index for April has returned a less dramatic result than many expected, with capital city values rising 0.2 per cent over the month.

Despite significant falls in other property indicators like listings, clearance rates, sales and sentiment, Corelogic’s house value index showed no evidence of a material decline in April.

The result was still the weakest month-on-month movement since June last year and half the 0.7 per cent rate of growth in March. Annual growth remained stable at 9.7 per cent.

The Melbourne property market returned the weakest result, falling into negative territory over the month at -0.3 per cent. Hobart was the only other market to post a decline.

Corelogic head of research Tim Lawless said the trend for positive growth started to weaken in mid-March as social distancing policies were implemented, placing considerable strain on consumer sentiment.

Home sales have been less resilient, recording a conspicuous 40 per cent decline in April to reach 29-year lows. The drop in property sales is most acute in Melbourne, with sales down 85 per cent over the past eight weeks while Sydney experienced a 79 per cent decline.

CBA economist Gareth Aird said that he expects price data to fall into line with other property market indicators in coming months.

“We suspect that there are some timing issues around the Corelogic data and actual price action,” Aird said.

“Any lags should catch up in due course.”