Brisbane is now Australia’s second most expensive capital behind Sydney in terms of home values, CoreLogic data shows.
It is the first time since 1997 that Brisbane has had the second-highest median home value in the country after overtaking Canberra in May.
This follows sustained growth in early 2024, when the Queensland capital surpassed Melbourne median house prices in January for the first time since June 2008.
The median home value in Brisbane is currently $937,479, $190 more than Melbourne.
The value of units in Brisbane is also higher: $615,429 compared to $614,299 in the Victorian capital.
Brisbane now trails only Sydney in median house value, as the government promises more funding for its housing scheme in the budget.
Brisbane home values have risen at more than five times the pace of Melbourne values since the pandemic began, up 59.8 per cent compared to 11.2 per cent respectively.
Brisbane has also significantly outperformed 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 properties available for sale in Perth and Adelaide remains more than 40 per cent below the five-year average for this time of year, while listings in Brisbane are 34 per cent below average,” said.
“New listings are being quickly absorbed by market demand, keeping stock levels low and putting upward pressure on prices.”
The median home value in Brisbane is currently $937,479, which is $190 more than Melbourne.
The state government is trying to combat supply issues by securing another $2.8 billion in the 2024-2025 budget for the Home for Queenslanders scheme, which seeks to build one million homes by 2046.
Premier Steven Miles announced Monday the construction of up to 600 modular homes as part of the plan.
Miles said the modular homes will be built in partnership with the private sector and will be operational by the end of 2024.
Modular homes are expected to be deployed predominantly in remote and regional locations such as Bundaberg, Innisfail, Mackay and Warwick, among others, he said.
“I know to build the homes Queensland needs we need to do things differently, which is why QBuild and businesses across the state will be getting involved to roll out more modular homes,” he said.
But despite renewed and record investment in housing, Queenslanders remain on the “brutal edge” of Australia’s housing constraints, the Queensland Council of Social Services (QCOSS) said.
A QCOSS report released on Monday shows rents in Queensland are rising faster than anywhere else in Australia.
The report estimates that around 150,000 households in the state are still unable to access affordable housing and vulnerable families are trapped in failing motel rooms.
It also found that only 10 per cent of private rentals are affordable for low-income households.
While QCOSS recognizes that the housing scheme will place significant downward pressure on supply in the coming years, tenants continue to feel the brunt.
“The Breaking Ground report confirms that, despite a nationally leading housing plan announced by the Miles Government in February, renters across Queensland have been ignored and many are on the brink of homelessness,” said Cllr executive, Aimee McVeigh.
“To make a real difference for renters, both the Queensland Government and the state Opposition must commit to capping rent costs and ending unfair evictions.”