{"id":1022,"date":"2024-01-17T09:53:20","date_gmt":"2024-01-16T23:53:20","guid":{"rendered":"https:\/\/anp-au.com\/?p=1022"},"modified":"2024-08-01T15:38:19","modified_gmt":"2024-08-01T05:38:19","slug":"brisbanewfh","status":"publish","type":"post","link":"https:\/\/anp-au.com\/en\/brisbanewfh\/","title":{"rendered":"Analysis: Is Brisbane's median house price surpassing Melbourne's WFH the key reason?"},"content":{"rendered":"

The house price report is out, and surprisingly, Brisbane's median house price has just surpassed Melbourne's. A new CoreLogic report analyzes the reasons. The report notes that Brisbane's total property value has seen astonishing growth over the past few years, particularly since the outbreak of the pandemic in March 2020, when it surged by 50.21% year-over-year. The rise of remote working in Australia has led to strong population growth in Brisbane, resulting in a surge in housing demand.<\/p>\n\n\n\n

At the end of last year, Brisbane reached a new milestone. The city now ranks third among capital cities for house prices, behind only Sydney and Canberra. By December 2023, the median house price in Greater Brisbane will be A$787,000, surpassing Melbourne's median by about A$7,000.<\/p>\n\n\n\n

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Figure 1. Time series of median housing values in major capital cities<\/p>\n\n\n\n

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Figure 2a. Median value in December 2023<\/p>\n\n\n\n

<\/p>\n\n\n\n

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Figure 2b. Houses and units as a share of total residential stock in December 2023<\/p>\n\n\n\n

Detached houses become Brisbane's advantage<\/h2>\n\n\n\n

So why did Brisbane surpass Melbourne in the median property price ranking? The report analysis notes that, interestingly, while Brisbane's median house price is higher than Melbourne's overall, Brisbane's median house and unit prices are $72,000 and $49,000 lower than Melbourne's medians, respectively. This is due to Melbourne's higher proportion of units in the residential market. CoreLogic estimates that apartments account for 33.81% of Melbourne's residential units, while Brisbane's proportion is 25.61% (Figure 2b). Because apartments are generally worth less than houses, a higher proportion of apartments lowers the median price for both houses and units.
<\/p>\n\n\n\n

In the short term, the difference in housing supply may adjust. The latest data from the Australian Bureau of Statistics shows that as of June last year, the ratio of houses to apartments under construction in Victoria was 1:1.4, while in Queensland it was 1:1.6, meaning Brisbane may have a slightly higher supply of apartments in the future.<\/p>\n\n\n\n

WFH remote working boosts property prices<\/h2>\n\n\n\n

The report notes that the differing rates of house price growth may be partly due to changing lifestyles. First, the appeal of southeast Queensland increased during the pandemic, with many professionals now working remotely, encouraging interstate relocation to Queensland. Meanwhile, Melbourne's prolonged lockdown from March 2020 to October 2021 encouraged people to move out of the city.<\/p>\n\n\n\n

Migration data from the Australian Bureau of Statistics shows that interstate migration in Queensland reached a record high of 51,500 people in March 2022. During the same period, Victoria's net interstate migration was -20,000 people, and remained negative as of June last year. Population data shows that Brisbane's population grew by 2.31 TP3T in the year ending June 2022, more than double Melbourne's growth rate of 1.11 TP3T. Overall, Melbourne's estimated resident population remains higher at 5,031,000, compared to Brisbane's 2,628,000.<\/p>\n\n\n\n

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Figure 3. Cumulative growth in residential market value since March 2020<\/p>\n\n\n\n

4a. Annual net interstate migration<\/p>\n\n\n\n

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4b. Annual net overseas migration<\/p>\n\n\n\n

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Outlook for property price rankings in major cities<\/h2>\n\n\n\n

Brisbane wasn't the only city to break through the rankings in December, with Perth's median house price slightly surpassing Hobart's, and Adelaide also surpassed Hobart earlier, making Hobart the second cheapest capital city.<\/p>\n\n\n\n

However, the new rankings may face a test in the coming months. While Brisbane remains undersupplied, monthly house price growth has slowed slightly, from 1.51t\/3T in October 2023 to 1.01t\/3T in December. As house prices continue to rise, Brisbane's affordability rating is becoming more difficult to maintain, potentially leading potential interstate migrants to stay in their home cities. Data from recent weeks has also suggested that certain areas face additional risks from extreme weather and flooding, which could impact demand in the short term.<\/p>","protected":false},"excerpt":{"rendered":"

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