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Brisbane becomes Australia’s second most expensive city

by xyonent
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CoreLogic research director Tim Lawless said Brisbane’s record rise was due to extremely low supply levels.

In January 2024, Brisbane’s median house price surpassed Melbourne’s, but CoreLogic said the reason for this was primarily compositional, with “Melbourne’s median house price being weighed down by a high concentration of relatively affordable properties.”

However, Brisbane house prices are now outpacing Melbourne house prices: Brisbane’s median house price is now $937,479, $190 higher than Melbourne’s median house price.

Previously one of the cheapest markets on the east coast, the Sunshine State’s momentum accelerated during the pandemic, with Brisbane’s values ​​rising faster than Melbourne’s: home values ​​in Brisbane have risen 59.8% since the start of COVID-19, compared with just 11.2% in Melbourne.

Lawless said a supply shortage was the “best explanation” for the difference in growth rates.

“The number of properties for sale in Perth and Adelaide remains more than 40 per cent below the five-year average for this time of year, and in Brisbane it is 34 per cent below average,” he revealed.

“Inventory levels in these markets remain well below average despite increased seller activity compared to this time last year. New listings are being rapidly absorbed by market demand, leaving inventory levels low and putting upward pressure on prices.”

In contrast, in Hobart, where listings are 41 per cent above the five-year average, house prices are down 0.5 per cent since May and home sales are 6.4 per cent below the five-year average.

Of the six state capitals where house prices rose last month, Lawless said “the common thread is the continued mismatch between housing supply and housing demand.”

“To say the housing market is robust is an understatement,” the research director said. “From both a purchasing and renting perspective, Australians still need to secure a place to live, despite increasing pressures on house prices.”

Across Australia, dwelling approvals remain 23.5 per cent below the 10-year average, while apartment complex approvals are almost 44 per cent below the 10-year average, despite a slight increase in supply compared to this time last year.

Sydney remains the most expensive capital city, with a median house price of over $1.15 million. Perth saw the fastest monthly increase, with the median house price rising 2.0% in May to $736,649.

Darwin and Hobart were the only cities to see a decrease during May.

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