BRISBANE SHINES BRIGHT IN THE REAL ESTATE SPOTLIGHT!
Brisbane is buzzing with excitement! According to CoreLogic's latest Home Value Index, Brisbane has officially taken over Canberra as the second-most expensive capital city in Australia. This shift marks a significant milestone for the vibrant Queensland city, and there's a lot to celebrate.
Brisbane's Remarkable Growth
In May, Brisbane's home values rose by an impressive 1.4%, translating to a median dwelling value increase of over $12,000 month-to-month. This growth isn't just a one-off; it's part of a consistent upward trend. Since the onset of the COVID-19 pandemic, Brisbane's property values have skyrocketed by 59.8%, substantially outpacing both Melbourne (11.2%) and the ACT (31.8%).
What's driving this rapid growth? CoreLogic's research director, Tim Lawless, points to extremely low levels of available supply as a key factor. Brisbane's listings are currently 34% below the five-year average, despite increased vendor activity. Fresh listings are being snapped up quickly, keeping stock levels low and pushing prices higher.
A Changing of the Guard
For the first time since 1997, Brisbane has overtaken Canberra in terms of median dwelling value. This isn't just a fluke; it's a testament to Brisbane's sustained growth and appeal. In January, Brisbane's dwelling values even surpassed Melbourne's median, a notable achievement considering Melbourne's historical premium over Brisbane.
The median house value in Brisbane now stands at $937,479, slightly higher than Melbourne's median house value. Similarly, the median unit value in Brisbane is $615,429, edging out Melbourne's $614,299. This shift highlights Brisbane's rising status as a prime real estate destination.
Sydney's Recovery
Meanwhile, Sydney's real estate market has also shown signs of recovery. In May, Sydney's home values rose by 0.6%, marking the largest monthly gain since October last year. Despite a significant drop of -12.4% following the January 2022 peak, Sydney has bounced back with a 14.1% rise through the cycle to date.
Interestingly, the upper quartile home values in Sydney and other capitals have shown slower growth over the past year. This trend reflects a shift in demand towards more affordable properties, as borrowing capacity and affordability constraints come into play.
What's Next for Brisbane?
With its consistent growth and increasing appeal, Brisbane is undoubtedly a city to watch. The combination of limited supply, high demand, and strategic development is creating a perfect storm for property value increases. Whether you're a potential homebuyer or an investor, Brisbane offers a promising landscape filled with opportunities.
So, if you're considering making a move or investment, now might be the perfect time to explore what Brisbane has to offer. The city's real estate market is not just surviving but thriving, setting new records and paving the way for a bright future.
Stay tuned for more updates and insights into Australia's dynamic real estate market!
Lachy Reid
