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Brisbane house prices tipped to fall 10 per cent - The Courier Mail 31-7-08 HOUSE values in Brisbane have dropped 1.3 per cent in the June quarter, with predictions that values could plunge by up to 10 per cent this year.
Australian Property Monitors' latest housing data shows units in Brisbane have fallen 3 per cent over the same period.
And the worst was still to come, APM general manager Michael McNamara said.
Mr McNamara said that nationally, the market was at its weakest in four years.
"The Brisbane market is looking quite soft," Mr McNamara said. "It's the only capital to see drops in both house and unit values."
He expects values will drop 10 per cent over the year, cutting almost $44,000 in value from the average priced home.
He said high borrowing rates, finance being harder to get and a big drop in consumer confidence were hitting hard.
And Mr McNamara warned that if banks continued to increase mortgage rates and the Reserve Bank lifted cash rates then price drops would be even more severe.
"We are already seeing housing finance decrease and building approvals slip away," he said.
Latest building approval figures released yesterday showed a fall of 1.5 per cent in Queensland. New home sales have fallen 7.3 per cent during the six months to June, the worst performance in the country.
Housing Industry of Australia state executive director Warwick Temby said the residential sector was being heavily weighed down by tighter credit controls, higher interest rates, excessive statutory costs and rising living costs.
But RPdata residential research director Tim Lawless predicts Brisbane will have a softer landing.
"Ten per cent sounds a bit pessimistic to me and ignores the strong population growth and limited supply in Brisbane," Mr Lawless said.
He predicts price declines will be forgotten by this time next year with prices increasing late in the year and early in 2009.
Mr McNamara said strong migration patterns and rising rents were not enough to attract either first home buyers or investors.
"The growing number of unsold properties sitting on the market is exacerbating the situation," he said.
"There are currently more than 25,000 extra properties on the market nationally, compared to this time last year.
"We expect a further 10 per cent dip in house and unit values across most major capitals over the next 12 months."
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