Brisbane house prices have hit a record median high of $792,065, following one of the biggest quarterly price hikes in two decades.

Figures from Domain’s latest House Price Report, released today, reveal house prices in the Sunshine State capital jumped 10.7 per cent over the three months to December – the steepest hike clocked across the city in almost 18 years.

It was also the second largest price leap across the country for the quarter, with only Canberra surpassing Brisbane with an 11.3 per cent house price rise that lead to a record-breaking median of $1,178,364.

The report also showed Brisbane house prices jumped by 25.7 per cent, or $162,181, over the year to December, a figure that equates to just over $444 per day.

Unit prices also inched north to a record median of $416,033 after a two per cent quarterly rise, and 3.5 per cent annually, for the first time since mid-2016.

The new numbers follow months of speculation that Brisbane’s red-hot market could outperform every other capital city in the country, with experts putting the rapid-fire price rises down to low interest rates, low COVID case numbers and the comparative affordability of Brisbane homes.

Such a scenario sparked thousands of Sydney and Melbourne migrants to call the sun-drenched city home over 2021, with Domain’s head of research and economics, Dr Nicola Powell, revealing 26 per cent of property inquiries in Brisbane over the last quarter came from southern home hunters.

“This is the growth cycle that we have all been talking about, the one that Brisbane was going to have. And here it is – it’s the steepest in almost 18 years,” Dr Powell said.

“We will see Brisbane hit the $800,000 median mark next quarter and this is where we will see it outperform (the other capital cities).

“Brisbane still has momentum. The total number of homes for sale are at a multi-year low, so escalating demand just isn’t matching that supply.

“And buyers are still being supported by low interest rates, higher household savings and reduced discretionary spending. We are [also] not travelling more, and these are some of the other reasons [for such strong growth].

“And when you do that direct comparison to Sydney, you can understand why if someone sold in Sydney – for the median price of $1.6 million – they would move to Brisbane where it’s half that.

“A lot of investment cash is also being injected into south east Queensland … and Brisbane is going to be the stand-out performer this year.”

While Dr Powell expects growing affordability concerns to propel the still-sluggish unit sector, she said young families seeking a house with a backyard were the main cohort of interstate migrants flocking to Queensland.

“House prices have risen seven times faster than units over the past year, the largest divergence on record, pushing the price gap between property types to an all-time high,” Dr Powell said.

Source: domain.com.au/news/