Brisbane overtakes Canberra nations second most expensive housing market

Move over Canberra and Melbourne, Brisbane is officially the second most expensive property market in the country and there is no end to price increases in sight.

Brisbane is now the second most expensive property market after overtaking Canberra and Melbourne in less than six months.

Double-digit price growth over the past year caused Brisbane ­to become the nation’s second-most expensive housing market, catapulting past Canberra and Melbourne in 2024.

Median properties in the Sunshine State capital now cost $834,000, beating Canberra by a tight margin. But the growth trajectory of the two capitals should have Brisbane cement its lead in the coming months, far sooner than originally expected.

Sydney remains in top spot, with the average home setting a buyer back $1.1m.

PropTrack’s Home Price Index revealed a 0.3 per cent lift in prices nationally in May, led by the smaller capitals. However, the pace of home price growth has slowed since summer in every capital city as the market enters traditionally the quietest time of year.

Perth led monthly gains after rising 0.73 per cent, adding to the 20.6 per cent increase in the past year alone. Brisbane rose 0.67 per cent for an annual gain of 13.7 per cent, while Adelaide is up 14.5 per cent annually after pushing 0.5 per cent higher in May.

PropTrack senior economist Eleanor Creagh said homeowners in the smaller capitals were “guaranteed” a good year of growth.

“That demand, supply imbalance isn’t going away in the ­immediate term,” she said. “At the same time, interest rates, while they are higher, they’re stable, and I think the expectation of continued price rises are probably playing a role in ­incentivising some to transact sooner rather than later, given the expectation of continued growth.”

PropTrack senior economist Eleanor Creagh. Picture: Supplied

It is not the first time Brisbane has been the second-most expensive market, holding the place for several months in 1980, a period in 1996-97 and again in 2009. However, Ms Creagh believes this stint will be prolonged.

“It’s really migration, home equity gains, very tight rental markets, investor activity and, probably, the Olympic Games playing a role in terms of that outlook,” she said. “But really, it’s that strong demand versus tight supply.”

Sydney had modest gains of 0.42 per cent through May, while Darwin rose 0.25 per cent and Melbourne remained weak (up 0.23 per cent). The only two markets to record monthly falls were Hobart (down 0.13 per cent) and ACT (down 0.21 per cent). Regional Australia remained flat.

Buyer’s agent Jordan Navybox said those considering to purchase should not delay.

“If the market is going up in a high interest rate environment, think about that will happen next year as they start cutting rates,” he said.