It seems everyone has a ticket to Brissie’s million-dollar club, with the number of Brisbane suburbs with a median house or unit value in the million-dollar club reaching a new record high in August, according to the latest CoreLogic Million-Dollar Markets report.
Brisbane tied with Sydney for the largest net change in million-dollar markets, with 46 markets (32 new entrants and 14 re-entrants), all house markets, joining the seven-figure club over the course of the year. This took the total count to 149 or 46% of the 324 suburbs analysed for median house values, well above the previous peak of 114 or 35.2% recorded back in June 2022.
It’s hardly a surprise given dwelling values have risen 15% over the year.
“The positive flow of interstate migration, coupled with a continued undersupply of advertised listings as well as newly built housing stock, has seen Brisbane values rise 65.1% since the onset of COVID,” CoreLogic Economist Kaytlin Ezzy said.
“Such a significant increase in home values has eroded much of the city’s previous affordability advantage, with Brisbane now having the second highest median dwelling value ($875,040) among the capitals.”
Hamilton ($2,332,478) overtook Ascot ($2,292,159) as the suburb with the city’s most expensive median house value, with Hamilton’s values rising 1.2% and Ascot falling
-2.8%. Despite recording a stronger annual increase in unit values (19.4%) compared to houses (14.1%), none of Brisbane’s 174 unit markets recorded a seven-figure price tag in August. Units in New Farm were the closest, with a current median value of $999,075, followed by Teneriffe ($981,308).
When the likes of Logan Village and Carseldine are recording million-dollar median house values, it almost makes sense that a one-bedroom on Sydney’s Bondi Beach has gone for a whopping $11 million. I said almost…Did you catch that headline this week? The sale of the 115sq m bachelor pad works out to be $83,000 per square metre. Mind-blowing stuff but there’s no sign of the price growth ending anytime soon, at least in Brisbane, which is why we say don’t wait to buy particularly while the value is still significant.
As a side note, interesting but not surprising to see the RBA hold strong on its inflation focus in regards to the official cash rate particularly off the back of interest rate cuts across the developed world. RBA governor Michele Bullock warned that progress on reducing underlying inflation had been slow and that the central bank expects the rate to stay above target until the end of 2025. We did see a lower monthly inflation read this week, but NAB is still forecasting that we won’t see a move on cutting interest rates until May next year.
The goalposts keep moving, one way or another, and all we can do is control the controllables.
I hope you enjoy the read.
Matt Lancashire
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