Brisbane homes more affordable now than they were in 2011

Jan 2017 - AU Property Outlook

Brisbane

BRISBANE homes are more affordable now than five years ago, new research has found – the only east coast capital city to boast improvements across four measures of affordability.

The CoreLogic Housing Affordability Report found that the cost of housing in Brisbane now made up a smaller proportion of household income than it did in 2011.

It found that the median dwelling across Brisbane cost 5.7 times the median annual household income, compared to 5.9 times income five years ago.

A 20 per cent deposit on a median priced dwelling was about 114 per cent of annual household income (about $93,500) compared to 118 per cent previously, and annual loan repayments took up 30.3 per cent of income – not 40 per cent as it was in 2011.

Rental properties were also more affordable, the report found, making up 25.4 per cent of annual household income compared to 26.4 per cent five year ago.

It was an impressive result given “the past five years has seen national dwelling prices rise by 19 per cent”, according to CoreLogic. At the same time ANU research had found that household incomes had grown by just 9.2 per cent.

Record low interest rates were a major factor in the result, but Brisbane showed improvements in other affordability measures that excluded the cost of debt, such as dwelling price to income ratio, and the proportion of household income required for a 20 per cent deposit.

The CoreLogic report said government policies linked to housing supply and land releases were “known to have a profound impact on the cost of housing” as well as high transaction costs.

“Stamp duty costs on the median priced dwelling are now more than $30,000 across both Sydney and Melbourne which is adding to the savings challenge for prospective buyers looking to participate in home ownership.”

The national price to income ratio was 6.9 times (7.2 times for houses and 6.4 times for units).

Trackback from your site.

Leave a comment

Our panel of lenders

  • Adelaide-Bank
  • Amp
  • Anz
  • Bank-Of-Melbourne
  • Bankwest
  • CIMB
  • Citibank
  • Homeside
  • Commonwealth Bank
  • DBS Bank
  • Firstmac
  • Heritage Bank
  • Homeloans
  • ING Direct
  • LA Trobe
  • Liberty
  • NAB
  • Macquarie Bank
  • Me Bank
  • OCBC
  • Pepper Financial Services Group
  • St. George Bank
  • Suncorp Bank
  • UOB
  • Westpac