Brisbane homeowners have made more on their properties over the past two years than those in Sydney, Melbourne, Canberra, or Perth, new analysis shows, with house prices skyrocketing through the boom and sustaining only small price falls during the downturn.
A Domain property time series tracking median house prices in these five capital cities over the past two years gives a detailed – and perhaps surprising – insight into the differences in movements between them.
Sydney’s median house price in March 2021 was just over $1.3 million, while Brisbane’s was $629,570.
By March 2023, Sydney’s median house price had increased to $1,459,856 – a price difference of $156,071, and Brisbane’s to $805,818 – a price difference of $176,248.
Perth’s median house price is $79,208 higher now than it was in March 2021 and Canberra’s is up by $116,335.
It’s Melbourne’s modest gain of $42,762 in that two-year period that could be seen as surprising, but not when put in the context of the demographic shifts during that time, says Domain chief of research and economics Dr Nicola Powell.
“Melbourne didn’t see the rate of price growth like some other cities did during the pandemic, due to the change in demographics that occurred,” she says. “Lots of people left the city – many moved to regional Victoria – but Brisbane really was the pressure point … all of a sudden the floodgates were open from Melbourne.
“I’d say these last two years of price movements are really showcasing the impacts of the demographic shifts we saw with people moving to regional areas and Queensland. This was a result of the changes to the way we work; being able to work from home, people reevaluating, asking themselves, ‘What to I want?’”
Powell says comparing Brisbane and Melbourne’s results side by side reveals an “extraordinary gain”.
“I think if you were a potential first-home buyer in Brisbane you’d be thinking, ‘I wish I’d bought two years ago,’” she says.
“Not being part of that capital growth change that’s occurred in Brisbane will be a real kick-yourself moment.”
Brisbane’s median house price peaked at $858,511 in June last year – by that point, Sydney and Melbourne prices were already falling – and has since dropped to $805,818.
Source: Domain.com.au