According to the latest report from Domain, median unit price dropped by a sharp 4.2% over the December quarter to $357,315. This follows a weakening trend for most of 2014 the report noted.
Some experts blamed the rising supply in the inner city area of Brisbane (particularly around Fortitude Valley and suburbs within the 4000 postcode) for the weak showing.
In addition, the uncertainties surrounding the election are also weighing on sentiment and adding further jitters in the market.
“Brisbane’s economy is waiting for significant improvement,” says Andrew Wilson, senior economist with Domain. “That will continue to drag on the market and it will be those value perceptions that keep kicking it all along.”
It’s not all bad news for Brisbane, however. Despite of the poor showing in the unit sector, median house price rose solidly over the same period, surging by 1.5% to $489,681. Over the year ending December, median house price grew by a healthy 6.1% while units plunged 3.3%.
Nationally, median house price rose 2.1% over the December quarter and by 7.1% over the year, while unit price recorded a quarterly gain of 1.7% and annual increase of 6%, according to Domain.
