Brisbane, the sunny city known for its vibrant culture and beautiful landscapes, has recently pulled off an incredible feat in the real estate market. Brisbane has officially outstripped Melbourne for property values, with new data showing the city is now the third most expensive capital for median dwelling values after Sydney and Canberra.
A new report from CoreLogic showed Queensland’s capital managed to surpass Melbourne’s median value by about $7000 late last year, making it the first time Brisbane has outshone its larger southern sister since July 2009.
Brisbane’s median value is now $787,217, the report showed, while Melbourne’s was $780,457. Values in Brisbane rose 50.2 per cent since the onset of the pandemic in March 2020, while Melbourne values were only 11 per cent higher.
So, what's behind this remarkable surge? Tome Avelovski, Director of Ready Set Buy attributed it to several factors. Firstly, Brisbane's robust economy has been the driving force, presenting ample employment opportunities across various industries. From technology and finance to healthcare and education, this city is thriving with potential.
Secondly, the constant expansion and development of infrastructure have played a significant role in boosting property values, along with the announcement of the 2032 Olympic and Paralympic Games to be held in Brisbane. The government's commitment to improving public transportation, building new roads, and fostering sustainable urban planning has made Brisbane an even more desirable place to call home.
But perhaps the real secret to Brisbane's success lies in its incredible lifestyle. Boasting fantastic weather, stunning beaches, and a laid-back atmosphere, it's no wonder that people are flocking to this city in droves. Not only is it a fantastic place to live, but it also offers a thriving cultural scene, culinary delights, and a strong sense of community.
Brisbane also collected record rates of interstate migration over the past three years amidst a mass exodus from Melbourne. In the 2021 and 2022 financial year, the population increased by 51,000 and that’s the equivalent of about 20,000 households.
In that same period only about 17,500 houses were added to the market through construction, which goes to show there was an undersupply of around 2,500 properties to meet the migration levels.
Property analysts CoreLogic found that every regional centre in Queensland – aside from the Sunshine Coast and Townsville – are now at their peak and continuing to rise. In the south-east, homes in Brisbane’s south, inner city, along with Logan and Ipswich, are now at their highest-ever median price.
Those in Brisbane’s east, north and west are within striking distance of their local records and rising fast, as are those across Moreton Bay.
While a series of rapid rate hikes had been expected to hit housing demand and impact price growth, we've seen quite the opposite outcome in Brisbane. A shortfall of housing supply, along with rapid population growth, a strained construction sector and the tightest rental market on record, resulted in a rise in Australian property prices.
While this is good news for those already in the property market, it was another story for those trying to get their foot into a door they owned. First-homebuyers who are active now are becoming more and more reliant on the bank of mum and dad, in terms of reaping the equity growth that baby boomers have experienced.
We also took a deep dive into keywords would-be Brisbane homebuyers typed in when searching for a home. Number one was a pool, but a close second was dual occupancy, suggesting people were seeking an alternative to houses, which could be homebuyers looking for more affordable options, or investors seeking higher returns to offset rising interest rates.
Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice, as we do not know your financial situation. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.