Brisbane now second priciest property market with boom to continue

Brisbane has climbed the ranks to become the second most expensive property market in Australia, overtaking Canberra and Melbourne, with Sydney remaining the priciest. According to CoreLogic data, Brisbane now holds the second-highest median dwelling value among the nation’s capital cities.

In May, Brisbane’s median house values surpassed Melbourne’s for the first time since June 2008, moving it to third place for house prices, behind Sydney and Canberra. Additionally, Brisbane’s unit market has overtaken both Melbourne and Canberra, making it the second most expensive city for units.

This shift is largely due to a sharp drop in property listings, which are 34.1% lower than the five-year average. Despite this, listings saw a slight 7.14% monthly increase, while sales volumes jumped by 7% over the past year. High buyer demand continues to push prices up as new listings are quickly absorbed.

Brisbane’s property prices have seen renewed growth, with dwelling values rising 1.4% in May, up from 0.9% in April. Over the last quarter, prices have grown by 3.9%, with the median dwelling value now at $843,230—an increase of $15,409 from the previous month and $37,638 from three months ago.

House prices in Brisbane saw a similar surge, increasing 1.4% in May, with a median house value now at $937,479. Over the past year, house values have risen by $129,307, making Brisbane the second fastest-growing housing market in Australia, behind Perth.

The unit market has been even stronger, growing 1.9% in May and achieving an annual increase of 18.2%. The median unit value in Brisbane now stands at $615,429, surpassing Melbourne and Canberra.

Brisbane’s rental market remains tight, with a citywide vacancy rate of just 1%. House rents rose 8.2% over the year, while unit rents grew by 9.6%. Gross yields for houses remain at 3.6%, while unit yields slightly decreased to 4.9%.

The undersupply of apartments in Brisbane is worsening, with just 2,200 apartments completed in 2023—a 70% drop compared to the previous year. While completions are expected to rise to 3,100 in 2024, they are projected to fall to just 1,200 by 2025, signaling a prolonged undersupply.

The supply shortage is exacerbated by planning restrictions, infrastructure challenges, high taxes, slow approvals, and labor shortages. Without significant changes to boost supply, Brisbane’s property market is likely to remain constrained for the foreseeable future.