Brisbane set to become nation’s second most expensive property market
Move over Melbourne and Canberra, somewhere up north is now on track to become Australia’s second most expensive market within the next year.
Brisbane is on track to become Australia’s second-most expensive property market within the next year after cementing its lead over Melbourne.
The median price of a property in Queensland’s capital rose by almost 3 per cent in the first four months of the year to $818,000, surpassing the typical Melbourne value by $13,000, to become the nation’s third-most expensive city.
PropTrack’s monthly Home Price Index revealed Brisbane was just $18,000 behind Canberra’s median price, and at the current rate of growth, it could close the gap within the next year.
PropTrack senior economist Eleanor Creagh said continued strong net-interstate migration and few homes on the market underpinned Brisbane’s growth.
“Brisbane is certainly outpacing Canberra and if that were to continue, we probably could see that overall dwelling value outpacing Canberra … by next year,” Ms Creagh said.
“It’s been one of the strongest markets since the pandemic onset. The supply of properties listed for sale in Brisbane has also been consistently tight at the same time population inflows have continued,” she said.
Brisbane’s dwelling price was heavily influenced by its larger proportion of detached houses.
Melbourne and Canberra had a more diverse mix of housing, including townhouses and units.
Sydney property prices rose 0.25 per cent in April. Brisbane rose 0.23 per cent, and Darwin rose 0.17 per cent. Perth and Adelaide were the strongest-performing markets and recorded the fastest monthly growth, up 0.83 per cent and 0.55 per cent, respectively. Canberra held steady. Melbourne was down 0.10 per cent and Hobart down 0.24 per cent.
Bank of Queensland chief economist Peter Munckton said Sydney, Brisbane and Adelaide markets appeared overvalued, but not at a level that might trigger a price correction.
Despite some economists saying rate rises might return, Ms Creagh said the next move would be a cut. “Even though inflation was higher than expected in the March quarter, this just pushes back the timing of rate cuts, rather than putting another rate hike on the table.”
Deutsche Bank macro strategist Tim Baker agreed, noting rate cuts were unlikely for the next three to six months, but a “hike seems a bridge too far”.
The housing market is moving into winter, traditionally the quietest time of the year for property transactions. Ms Creagh expects growth to slow as a result.
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