Perth and Brisbane property values rise in defiance of interest rate hikes

Such a rise would see the average house price in the capital rise by $51,569 to $1.1 million.

The bank’s forecast suggests Brisbane property prices will rise 9.7 per cent, representing a jump of $54,919 in the average house price to $1.26 million.

In contrast, property prices in Australia’s two largest cities are falling, under increasing pressure from successive interest rate increases and cost-of-living pressures, stretching borrowers’ capacity.

House prices in Melbourne are forecast to fall by 1.7 per cent, while those in Sydney are expected to fall by 0.9 per cent.

“It’s a story of two property markets across Australia, locked in a battle between how much the bank will lend and how urgently people need homes,” says Sally Tindall, director of data insights at Canstar.com.au.

“The rate hikes have pushed Sydney house prices to the limit, at least for now, which is far from surprising with an average price of $1.6 million.”

Consumer confidence has taken a nosedive since the last outbreak of war in the Middle East almost two months ago, with Westpac predicting three more rate hikes this year.

This would result in the borrowing capacity of a single person earning an average full-time wage falling by $58,700 this year.

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