Brisbane is now Australia’s second most expensive capital after Sydney in terms of home values, data from CoreLogic shows.
It is the first time since 1997 that Brisbane has had the second highest average home value in the country, after overtaking Canberra in May.
That follows continued growth earlier in 2024, when the Queensland capital in January overtook average house prices in Melbourne for the first time since June 2008.
Brisbane’s average home value is currently $937,479, which is $190 higher than Melbourne.
Brisbane now trails only Sydney in average home value as the government commits more funding for its housing plan in the budget
Unit values in Brisbane are also higher at $615,429, compared to $614,299 in Victoria’s capital.
Brisbane home values have risen more than five times faster than Melbourne values since the start of the pandemic, by 59.8 per cent and 11.2 per cent respectively.
Brisbane has also significantly outpaced growth in the ACT, where values have risen 31.8 per cent since March 2020.
CoreLogic’s Tim Lawless said extremely low levels of available supply in strong markets explain the difference in growth rates.
“The number of homes for sale in Perth and Adelaide remains more than 40 per cent below the five-year average for this time of year, while supply in Brisbane is 34 per cent below average,” he said.
‘New offers are quickly absorbed by market demand, keeping inventory levels low and putting upward pressure on prices.’
Brisbane’s average home value is currently $937,479, which is $190 higher than Melbourne
The state government is trying to combat supply issues by committing another $2.8 billion in the 2024-25 budget for the Home for Queenslanders plan, which aims to build one million homes by 2046.
Prime Minister Steven Miles announced on Monday the construction of up to 600 modular homes as part of the plan.
Mr Miles said the modular homes will be built in partnership with the private sector and put into use by the end of 2024.
The modular homes are expected to be rolled out mainly to remote and regional locations such as Bundaberg, Innisfail, Mackay and Warwick, along with others, he said.
“I know we need to do things differently to build the homes Queensland needs. That’s why QBuild and companies across the state will be tapped to roll out more modular homes.”
But despite renewed and record investment in housing, Queenslanders remain on the “brutal edge” of Australia’s housing problems, according to the Queensland Council for Social Services (QCOSS).
A QCOSS report filed on Monday shows rental prices in Queensland are rising faster than anywhere else in Australia.
The report estimates that about 150,000 households in the state still lack access to affordable housing, with vulnerable families stuck in crisis motel rooms.
The research also found that only 10 percent of private rental properties are affordable for low-income households.
While QCOSS recognizes that the housing plan will place significant downward pressure on supply in the coming years, tenants continue to bear the brunt.
“The Breaking Ground report confirms that, despite a world-leading housing plan announced by the Miles government in February, renters across Queensland are being overlooked and many are on the brink of homelessness,” said CEO Aimee McVeigh.
‘To make a real difference for tenants, both the Queensland Government and the state Opposition must commit to limiting rental costs and ending unfair evictions.’
