CoreLogic’s daily dwelling values index recorded a 1.4% decline in Brisbane dwelling values over the month of December to be down 5.0% over the final quarter of 2022.
This was the sharpest quarterly price decline in the nation and took Brisbane values down 9.2% from their June 2022 peak.
As shown in the next chart, which plots Brisbane’s current price correction (in black) against prior historical episodes, Brisbane’s current price decline is easily the steepest on record as well as the second largest:
Based on the current pace of decline, Brisbane should overtake the record 10.8% price correction recorded between 2010 and 2012 in February.
The steepness of Brisbane’s price decline makes sense given the aggressiveness of the Reserve Bank of Australia’s (RBA) interest rate hikes, alongside the extreme growth in Brisbane dwelling values over the pandemic:
Brisbane dwelling values soared 45.3% between end-February 2020 and end-June 2022 and remained 31.1% above their pre-COVID level at the end of 2022.
Therefore, as long as the RBA continues lifting interest rates, Brisbane dwelling values will continue to plunge lower.
