Brisbane Surpasses Melbourne as Australia’s Second Most Expensive City for Housing - Property Inc

Brisbane Surpasses Melbourne as Australia’s Second Most Expensive City for Housing

In a significant shift in Australia’s housing market, Brisbane has overtaken Melbourne and Canberra to become the country’s second most expensive city for property. According to the latest data from CoreLogic, Brisbane’s housing prices rose by 1.4% in May, setting the median property price at $843,231, the highest since 1997.

Kate Ainsworth reports that this milestone is part of a broader trend observed across Australia, where dwelling prices have risen by 0.8% in May alone, marking the 16th consecutive month of price increases. Despite economic challenges such as high interest rates and inflation, the housing market’s resilience continues to be evident, with the national median home now valued at $785,556.

Tim Lawless, CoreLogic’s research director, emphasizes the role of supply and demand dynamics in driving up prices. “The common denominator remains a mismatch between housing supply and housing demand,” he stated. This imbalance is stark, with housing supply almost 2% lower than a year ago, while demand has surged by 2.8% over the same period.

Sydney remains Australia’s most expensive capital city with a median home price of $1.15 million, followed by Brisbane, Canberra, and Melbourne. Brisbane’s remarkable growth has been partly attributed to a low inventory of homes and a high concentration of affordable units and apartments in Melbourne, which have lagged in value growth.

“The number of properties available for sale in markets like Perth and Adelaide remain significantly below average, keeping stock levels low and maintaining upward pressure on prices,” Lawless explains. He also suggests that until more housing is built, Australians can expect “further upwards pressure” on housing values and continued erosion of affordability.

This trend is not new for Brisbane, which first surpassed Melbourne’s median house value back in January. Since then, Brisbane’s housing values have grown by an impressive 59.8% compared to Melbourne’s 11.2% growth since the COVID-19 pandemic began.

The shift in Brisbane’s market positioning reflects broader economic patterns and a regional realignment of Australia’s real estate landscape. As the market adapts to ongoing pressures and evolving demand, cities like Brisbane are emerging as new centers of high property value, reshaping the traditional hierarchy of Australian real estate.

References:

https://www.abc.net.au/news/2024-06-03/corelogic-property-prices-increase-may-housing-supply-demand/103919008 

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