When there is no bubble, invent one!

HOUSE prices in Brisbane have hit a new record high with some suburbs in the the sought-after inner-city ring increasing by more than 20 per cent in the last year.

St Lucia, Ascot, Auchenflower and Wilston were the best performing suburbs in Brisbane where the prices increased by more than $150,000.

Property experts say the Queensland’s southeast had emerged as a powerhouse property market generating solid capital growth for homeowners and putting its southern counterparts to shame.

The latest Real Estate Institute of Queensland quarterly report shows the Brisbane local government area median house price rose 3.6 per cent over the year to June to a new high of $655,000.

That’s nearly 60 per cent higher than it was a decade ago, showing the resilience of the city’s housing market against headwinds such as the global financial crisis and the mining downturn.