Brisbane has emerged as the second-most expensive capital city in Australia after Sydney, overtaking Canberra.
With the latest CoreLogic Home Value Index showing significant growth across various cities, Brisbane's property market stands out for its robust performance and upward trajectory. This article delves into the factors driving Brisbane's property market, its remarkable growth, and why now might be the perfect time to invest in Brisbane real estate.
A Snapshot of Brisbane's Property Market Growth
CoreLogic’s Home Value Index recorded a 0.8% rise in May, marking the 16th consecutive month of growth and the largest monthly gain since October last year. Brisbane's home values increased by 1.4% in May, translating to a median dwelling value rise of over $12,000 month-to-month. This impressive growth places Brisbane ahead of Canberra in terms of median dwelling value, a feat not achieved since 1997.
Tim Lawless, CoreLogic's research director, attributes this rapid growth to extremely low levels of available supply. Brisbane's property listings are 34% below the five-year average, despite an increase in vendor activity compared to last year. The high demand and rapid absorption of fresh listings have kept stock levels low and prices high.
Changing the Guard: Brisbane Overtakes Canberra and Melbourne
May saw a significant milestone for Brisbane as it surpassed Canberra to become the second-most expensive capital city. Additionally, Brisbane's median dwelling values have overtaken those of Melbourne, both in overall terms and specifically for house values. This shift is partly due to the composition of Melbourne's property market, which includes a higher concentration of cheaper units. However, Brisbane's house values have consistently risen, with the median house value now at $937,479, slightly above Melbourne's. Meanwhile, Brisbane’s median unit value now sits at $615,429, which is also slightly above Melbourne’s.
Since the onset of the COVID-19 pandemic, Brisbane's property values have surged by 59.8%, compared to Melbourne's 11.2% and the ACT's 31.8%. This rapid growth has significantly narrowed the premium previously held by Melbourne and Canberra over Brisbane.
The Impact of Supply and Demand
The differences in property market performance across Australia's capital cities can be largely explained by varying levels of supply and demand. While Brisbane, Perth, and Adelaide are experiencing low inventory levels and high demand, cities like Hobart are seeing an excess of supply with listings 41% above the five-year average. This surplus in Hobart is a result of lower demand, with home sales 6.4% below the previous five-year average.
In contrast, Brisbane's limited supply and high demand continue to drive property prices up. Fresh listings are quickly absorbed by the market, maintaining low stock levels and putting upward pressure on prices. This dynamic creates a competitive environment for buyers and lucrative opportunities for sellers.
Investing in Brisbane's Property Market
Brisbane's property market is on an upward trajectory, with strong growth driven by high demand and limited supply. The city's recent achievement of becoming the second-most expensive capital city, along with its consistent outperformance of Melbourne and Canberra, highlights its potential as a prime investment location.
For those considering investing in Brisbane real estate, now is the ideal time to act. The continued demand and rapid absorption of listings suggest that property values will likely continue to rise. Our expert team of sales agents at LJ Hooker Property Partners is here to help you navigate this dynamic market and find the perfect property investment.
Contact us today to learn more about the opportunities in Brisbane's thriving property market and how we can assist you in making a successful investment.
