Sydney and Melbourne are Australia’s two largest capitals, and with high demand to live in these cities, they have seen the biggest growth in property values for many years. But Brisbane is becoming a more and more attractive prospect for those in the southern capitals.

The tide turned as property prices boomed over the past few years, making property in Sydney and Melbourne even more unaffordable. But this also came during COVID, when people found they no longer had to work in the office, and moving to more affordable areas with a more appealing lifestyle became a valid option. There are many reasons why Sydney and Melbourne buyers should continue to look north and purchase in Queensland instead.

Brisbane Is A More Stable Property Market.

When it comes to property markets, Sydney and Melbourne have always been more volatile cities, where prices have been subject to greater ups and downs in comparison to Brisbane, which is seen as steady and stable. This continues to be the case in the market slowdown we’ve seen over the past few months following the boom during COVID.

According to CoreLogic’s latest national Home Value Index, Australian dwelling values have fallen by two per cent since the peak in April, after rising by 28.6 per cent over the boom.

While prices fell in five of the eight capital cities in July, the fall was led by Sydney, where prices fell by 2.2 per cent, and Melbourne, where prices fell by 1.5 per cent. In comparison, Brisbane prices declined by just 0.8 per cent in July, falling for the first time since August 2020, but have still recorded growth of 22.1 per cent over the past year, compared to Sydney (1.6 per cent) and Melbourne (0.3 per cent).

Meanwhile, over the past quarter, Sydney and Melbourne’s prices have fallen by 4.7 per cent and 3.2 per cent, respectively, while Brisbane has seen growth of 0.1 per cent.

South East Queensland Is Expected To Keep Growing.

Brisbane is tipped to be one of the strongest performing capital cities this year, benefitting from higher demand for housing due to strong population growth, infrastructure projects, and relative affordability.

According to Australian Bureau of Statistics figures, the Sunshine State had the highest population growth last year, with an increase of 75,579 people, more than 50,000 higher than Western Australia and New South Wales.
The state also had more than 83 per cent of interstate population inflows over the past year, with a record net gain of 50,162.

Many of these people are moving for lifestyle reasons. South East Queensland has a more laid-back lifestyle, a warmer climate, and access to amazing beaches, mountains, national parks, and tourist attractions.

Brisbane is set to be transformed by a range of infrastructure projects in the pipeline, including Queen’s Wharf, Waterfront Brisbane, Cross River Rail, Brisbane Metro and Brisbane Live, in addition to a range of developments to be undertaken in the lead-up to the 2032 Olympics.

These projects will create jobs and attract more people to the revitalized city and key regional areas close to Brisbane, including the Sunshine Coast.
People will also continue to be attracted to South East Queensland’s affordability.

While property prices have seen strong growth during the boom over COVID, Brisbane is still significantly cheaper than Sydney.

The median dwelling value in Sydney is $1,087,376, while in Brisbane, it’s $781,850 – around 30 per cent cheaper, according to the latest CoreLogic data.

The median house price in Sydney is $1,346,193 and $964,950 in Melbourne, while in Brisbane, it’s $884,336.

The median unit price in Sydney is $806,310 and $614,351 in Melbourne, while in Brisbane, it’s $504,520.

Regional Queensland is also cheaper than New South Wales and Victoria counterparts, with Brisbane’s median dwelling price being $565,368, compared to $588,629 in Victoria and $741,544 in NSW.

Investors Can Benefit From Higher Yields.

Brisbane offers good opportunities for Melbourne and Sydney buyers looking for better yields. The latest CoreLogic data shows Sydney’s yield is the lowest in the country at 2.8 per cent, followed by Melbourne at three per cent. This compares to Brisbane, which sits higher at 3.6 per cent. Rental growth was the highest in Brisbane over the past quarter, rising by 4.2 per cent, according to CoreLogic, which means yields will strengthen further if property values remain stable.

With a current vacancy rate of 0.6 per cent, rents will likely keep rising in Brisbane.

With so many places in Brisbane and South East Queensland to buy, it can be helpful to have someone on the ground to guide you in determining where you should look to find something that ticks all your boxes. For a free consultation from The Edge Property Buyers contact us here.