Prices Overtake Melbourne
By Adrian Garcia
Brisbane home prices have officially overtaken Melbourne, soaring to a record high with a staggering 64.7 per cent surge since the onset of the pandemic. Experts foresee no end in sight to this upward trend as demand continues to surge.
The PropTrack Home Price Index, released on Wednesday, revealed that the combined median price for Brisbane houses and units for April reached $818,000, surpassing Melbourne's $805,000. Sydney retained its position as the most expensive capital at $1.081 million. While Brisbane's median prices for houses and units stood slightly lower than Melbourne's ($911,000 and $617,000 respectively), the sheer volume of units in Melbourne weighed down its overall median.
If the current trend persists into the next year, Brisbane is projected to add over $100,000 by April, bringing its median home price to $922,900 compared to Melbourne's $813,000. Eleanor Creagh, senior economist at PropTrack, highlighted Queensland's exceptional performance amidst the pandemic, with Brisbane's growth outpacing Melbourne's.
Brisbane finds itself in the midst of a seller's market, characterized by limited choices for buyers. The demand-supply imbalance continues to fuel robust home price growth in the city, with population growth expected to remain strong.
This marks the first time in 14 years that Brisbane has surpassed Melbourne in housing prices. Historically, Brisbane has outperformed Melbourne only twice before, between 1994-1997 and 2006-2010. In regional Queensland, home prices have also experienced significant growth, rising by double digits annually.
Industry leaders such as Jason Andrew, CEO of Ray White Queensland, note healthy competition across the state, resulting in unprecedented clearance rates and auction registration numbers. With the Olympics on the horizon, Brisbane's housing market is poised for further growth, possibly reaching the $1 million median mark in the next year or two.
Peter Munckton, chief economist at the Bank of Queensland, anticipates substantial rises in 2024 and 2025, with Perth, Brisbane, and Adelaide emerging as the strongest performers.
As Brisbane continues to rewrite its housing market narrative, the city stands as a beacon of resilience and growth amidst challenging times, with its housing sector poised for even greater heights in the years to come.
