PropTrack’s home values index shows that Brisbane dwelling values have increased by 61% since the beginning of the pandemic, dwarfing the 33% increase across Sydney and the 16% rise across Melbourne:
PropTrack also showed that Brisbane’s median dwelling value was equal to Melbourne’s at $797,000 in February.
Admittedly, Brisbane has a higher share of detached houses than Melbourne. detached houses are more expensive that units and, therefore, pull Brisbane’s median dwelling value upwards.
This fact is evidenced in the below table from PropTrack showing that Brisbane’s median house price was $892,000 in February, below Melbourne’s median house price of $909,000:
Nevertheless, Brisbane’s median house price was on the cusp of surpassing Melbourne’s at the end of February.
Indeed, CoreLogic’s daily dwelling values index shows that Brisbane dwelling values grew by 0.9% in the 28 days to 18 March, well above the 0.2% growth recorded across Melbourne and the 0.4% growth recorded in Sydney:
“Brisbane is chasing down Melbourne and there is real potential that Brisbane will surpass Melbourne quite soon as Brisbane has maintained that demand supply imbalance that has fuelled price growth”, PropTrack’s Eleanor Creagh said.
“Brisbane is the new Melbourne”, Brisbane buyer’s agent Wendy Russell said.
“And I believe Brisbane home values will surpass Melbourne by the end of the year, if not sooner”.
Recent forecasts from two of Australia’s banks tipped further strong price growth for 2024.
ANZ forecast 9-10% growth for Brisbane this calendar year, well ahead of only 2-3% growth for Melbourne:
NAB forecast 7.7% price growth for Brisbane this year versus only 2.6% growth for Melbourne:
Brisbane has almost lost its affordability advantage over Melbourne and is fast catching up with Sydney.
At some point in the not-too-distant future, it may come time to declare Brisbane housing a ‘bubble’ reminiscent of Perth a decade ago.
