In an unexpected twist of fate, Brisbane, once overshadowed by the likes of Sydney, Canberra, and Melbourne in the realm of property prices, has now risen to become Australia’s third most expensive city. This stunning climb, fuelled by a three-year COVID-19-driven boom, has seen home prices in Queensland's capital skyrocket by a whopping 50 percent since 2020.
Now, with a median dwelling price sitting at a lofty $787,217, Brisbane has not only surpassed Melbourne's median of $780,457 but has also reshaped the Australian property landscape. CoreLogic reveals this is the first time in 15 years that Brisbane’s housing costs have outstripped those in Melbourne.
While Brisbane's median house price of $875,991 remains more affordable than Melbourne's $948,041, it is the remarkable growth in Brisbane's market that’s the real story here. Even in the unit sector, Brisbane holds an edge, with a median price of $561,016, comfortably below Melbourne's $610,122.
This property price surge has had a surprising cultural ripple effect, particularly in the wine industry. The term 'Cardboardeaux,' a playful nod to boxed wine, has become a symbol of Brisbane's rising status and its challenge to Melbourne's traditionally more refined tastes. This phenomenon reflects a shift in attitudes and preferences, as Brisbane embraces a more down-to-earth, accessible luxury compared to Melbourne's reputedly snobbish palate.
Experts suggest that Brisbane will maintain its lead in this property price “tussle” with Melbourne in the short term. Interestingly, while Brisbane continues to be a seller's market, the rate of increase in property values is showing signs of slowing, dropping from a 1.5 percent monthly growth in October to 1 percent in December.
This property market evolution parallels a broader trend in Australia, where preferences and lifestyle choices are shifting in unexpected ways, much like the preference for 'Cardboardeaux' over traditional wines. As Brisbane's star continues to rise, it will be fascinating to watch how this impacts not only the property market but also cultural norms and consumer behaviour across Australia. Next thing we know Brisbane Broncos might become ‘Australia’s’ team.
The recent surge in property valuations may lead to significant savings for mortgage holders, particularly where the loan-to-value ratio (LVR) drops because of increased property worth. Check out our article that exposes the impact of LVR on refinancing to see how this translates to savings.
This could be the perfect time for property owners to reevaluate the value of their homes, over a glass of ‘Cardboardeax’, and potentially reduce their mortgage payments. For those keen on taking the negotiation into their own hands, our comprehensive guide to home loan negotiations offers invaluable insights and strategies.
However, if you prefer a hassle-free approach, remember that Craggle is always here to assist. With our expertise in mediating and securing better deals, we strive to get the fairest outcome for you.
Disclaimer: The opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendations.