In unfortunate, though not entirely unexpected news, the cost of housing in Brisbane has almost doubled in the last five years, both for units and houses.
In just three months, for instance, the cost of units jumped almost a full 5%, and the gap between our housing market and Sydney’s — the nation’s most expensive — has been shrinking, especially as both the capital and Melbourne saw their prices drop in the last month.
In fact, as mentioned, over the last five years, Brisbane’s median unit and house prices have nearly doubled, which stands in a stark contrast with a wage growth of only 15% to 18%.
Currently, Brisbane’s median unit price has risen to $800,500, an ever-diminishing difference from Sydney, where the median unit costs $848,227.
What this means is a market being reshaped by lack of affordability, and entry-level demand that outpaces a tight supply.
Even typically more affordable suburbs have been going up, sometimes due to proximity to some of the city’s more prestigious sectors. And, unfortunately, the market’s lower end is where the growth has been the sharpest, with smaller homes, such as one-bedroom units rising almost 30% in a year.
When it comes to suburbs, Redcliffe and Auchenflower were among the most radically affected, with the former skyrocketing 42% in the last year, and the latter, 34.7%. The most expensive suburb remains New Farm though, with house prices rising almost 15%.
But there are some encouraging signs, with the market cooling in the last month, due to a mix of international uncertainty and interest rate pressures.
Top 5 most expensive cities in Australia
Sydney
Current price: $1,791,643
Prices last quarter: $1,792,415
Change: −0.04%
Brisbane
Current price: $1,212,195
Prices last quarter: $1,162,884
Change: 4.2%
Perth
Current price: $1,178,522
Prices last quarter: $1,114,907
Change: 5.7%
Adelaide
Current price: $1,099,293
Prices last quarter: $1,045,371
Change: 5.2%
Canberra
Current price: $1,083,769
Prices last quarter: $1,068,921
Change: 1.4%
