Brisbane Becomes Australia's Second Most Expensive Capital

Brisbane passed a symbolic milestone at the start of June 2024. CoreLogic data released on 3 June showed the Queensland capital's median dwelling value, which combines houses and units, rose 1.4 per cent in May to $843,231, making it the second most expensive capital city in Australia after Sydney.

It was the first time since 1997 that Brisbane had recorded the second-highest median dwelling value. Canberra slipped to third, followed by Melbourne, Adelaide and Perth. Sydney remained well ahead, with a median of $1.15 million.

Houses and units both ahead of Melbourne

Brisbane's overall dwelling value had first overtaken Melbourne's in January 2024, a shift CoreLogic partly attributed to Melbourne's higher concentration of relatively cheap units and apartments. By May, the gap had widened to both property types.

Brisbane's median house value reached $937,479, just $190 more than Melbourne's, the first time since June 2008 that Brisbane house values had exceeded Melbourne's. Its median unit value of $615,429 was also $1,130 higher than Melbourne's.

Five times the growth

The reversal reflected years of divergent growth. CoreLogic figures showed Brisbane values had risen 59.8 per cent since the onset of COVID-19, compared with 11.2 per cent in Melbourne. Before the pandemic, Melbourne's median dwelling value was about 37 per cent higher than Brisbane's.

Nationally, dwelling values rose 0.8 per cent in May, the largest monthly increase since October 2023 and the 16th consecutive monthly rise, taking the national median to $785,556.

CoreLogic research director Tim Lawless said a mismatch between housing supply and demand was outweighing the downward pressure from high interest rates, high inflation and weak sentiment. Brisbane listings were 34 per cent below the five-year average, while Perth and Adelaide were more than 40 per cent below.

Nationally, CoreLogic estimated that the available supply of homes for sale was almost 2 per cent lower than a year earlier, while demonstrated demand was 2.8 per cent higher. Lawless said fresh listings in the mid-sized capitals were being absorbed rapidly, keeping stock levels low and putting upward pressure on prices despite worsening affordability for both buyers and renters.

The supply challenge

Lawless cautioned in 2024 that until more housing was built, Australians could expect further upward pressure on values and further erosion in affordability. He expected supply and demand to even out eventually, as population growth slowed and construction picked up.