Brisbane house values ‘too low’
Research by independent valuer LandMark White indicates that the values of Brisbane houses are “too low” compared with prices for units, townhouses and other attached dwellings. LandMark White's research director, Jennelle Wilson, studied REIA median residential property prices over a 20-year period. The median price of a Brisbane unit was 93 per cent of the price of a house, she said, while in Sydney and Melbourne the ratios were consistently around 77 per cent for the period. Ms Wilson claimed that the Brisbane market had traditionally undervalued freestanding houses in comparison with townhouses and units. Median house prices in Brisbane have begun to change over the past 18 months, however, with units now priced at 84 per cent of median house prices. The ratio in Sydney is now 89 per cent and Melbourne 77 per cent. Brisbane has been a “late bloomer” in achieving price growth, Ms Wilson said, while Sydney and Melbourne have had strong price rises since 1996.
Ms Wilson said that as cheap land becomes more difficult to obtain in Brisbane, the difference in median prices will become consistent with Melbourne and Sydney. They won't be the same value, obviously, she said, but the ratio should become more relative.