Brisbane sheds its sleepy image with surging house values — now only second to Sydney

Still think of Brisbane as a quiet, steamy backwater in Australia’s north? The kind of place where you could sell your Sydney or Melbourne home, buy a charming worker’s cottage on stilts with a big verandah, and still have cash left over? It’s time to rethink that.

In Brisbane’s property market, it’s a fierce competition.

With a housing shortage and strong demand from both locals and the 116,260 people who moved to the city from overseas and interstate last year, finding a reasonably priced home has become a daunting task. Many are stuck in subpar rentals, endlessly scrolling real estate sites for options.

Our family was part of that frenzy last year.

After 25 years in Sydney, my husband, our two grown sons, and I relocated to Brisbane in December 2022. For 18 months, we lived in a dated orange brick house in the suburbs. Built in the 1950s, it resembled a council toilet block. The eaves were streaked with black mold, the garden was overrun with weeds, and the pool was literally falling apart tile by tile.

The house’s interior wasn’t much better. The terrazzo bathroom had a pink toilet, basin, and bath, but rusted pipes caused frequent flooding. The cramped galley kitchen, with its outdated Formica counters, served as a reminder of how much Australians have grown taller since the war years.

Despite all this, the property had skyrocketed in value. In January 2019, it sold for $1.725 million. By December 2022, without any renovations, it fetched an eye-watering $3.1 million.

No wonder Brisbane has overtaken Melbourne to become Australia’s second-priciest property market, trailing only Sydney.

“Supply is incredibly tight,” says Jamie Charman, a buyer’s agent and former Brisbane Lions football player who helped us find a home. His agency handles about 80 properties annually, mostly off-market, but finding sellers is increasingly difficult.

“People now expect to make $500,000 in just a couple of years on their property – and they are!” Charman explains. “A few years ago, that kind of profit was massive. Now, it’s the baseline for selling.”

Apartments are also in high demand. According to Charman, Brisbane had just 1,000 new inner-city apartments completed last year, dropping to 750 this year, with even fewer expected next year. This has driven up prices for existing units.

CoreLogic’s Tim Lawless highlights the staggering rise in Brisbane property values, with the median dwelling price increasing by over $12,000 every month. Homes now sell within an average of 19 days – a dramatic acceleration compared to previous years.

What’s driving this boom?

For over a decade, Brisbane has been Australia’s fastest-growing major city, with its population increasing by 21%. But property prices remained flat until recent years. Now, Brisbane is experiencing an economic surge. By 2041, its economy is projected to grow by two-thirds to $275 billion, fueled by export growth, infrastructure projects, and the upcoming 2032 Olympics.

Brisbane has become a hub for skilled migrants, many from the Asia-Pacific region, and a popular destination for professionals in fields like law, finance, and engineering. It’s also home to the largest health clusters in the southern hemisphere and has been recognized as an advanced manufacturing hub by the World Economic Forum.

The city is undergoing a $25 billion infrastructure boom, including rapid busways, new rail crossings, pedestrian bridges, and the much-anticipated Queen’s Wharf development, which will add over 50 bars and restaurants to the city center.

Despite the excitement, housing remains a critical issue. Heidi Cooper, CEO of Business Chamber Queensland, warns that the housing crisis is becoming an economic barrier. “You can’t employ people if they have nowhere to live,” she says.

While some experts, like Lawless, predict Brisbane’s price growth will eventually slow, Charman isn’t so sure. “There are too many buyers and not enough supply, especially in the more affordable unit market. I don’t see things settling down for at least three more years,” he predicts.

Brisbane is booming, but it’s a city where finding a home has become a battleground.