House prices in Brisbane are skyrocketing at an alarming rate with one Mt. Gravatt three bedroom shack sold for $1.4 million.

In 2018, homes in Mt Gravatt were sold for around $400,000, raising questions about why prices are so high now and when affordable starter homes began costing millions.

REIQ CEO and Real Estate expert Antonia Mercorella told Peter Fegan on 4BC Breakfast, "The reason that we're seeing these prices is because we've just done such a poor job of maintaining the supply we need to meet the demand."

"There is immense pressure on the established housing market."

"We're not building enough new homes, so when a property comes onto the market, the level of interest, the level of demand is extraordinary," she said.

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