BRISBANE is creeping up the ranks of the “million dollar-plus club”, with the number of sales over $1 million hitting a record high. The latest CoreLogic Property Pulse report found that a “historic high of 9.2 per cent of houses and 3.3 per cent of units in Brisbane” had sold for at least $1 million over the 12 months to June 2018.
“The share of sales of at least $1 million has risen quite considerably over the year from 8.1 per cent for houses and 2.8 per cent for units a year ago,” the report said.
And many of those sales are being driven by buyers in the southern capitals, where the number of prestige sales is declining.
CoreLogic senior research analyst Cameron Kusher says interstate migration is playing a part in Brisbane’s success. And he expects the trend to continue.
“People in Sydney and Melbourne are seeing what they can get for a million in Brisbane; they are seeing that value,” he said. “And that higher end of the market is still growing in Brisbane, whereas elsewhere it is declining. The Brisbane economy is also improving.”
But he does point out that Brisbane has room to grow in terms of value, after a steady-as-she-goes decade.
Ray White New Farm principal Matt Lancashire agrees, saying “Brisbane is still grossly undervalued”.
“Unlike Sydney and Melbourne, Brisbane hasn’t gone boom so there is no bust to come,” he said. “Brisbane has grown steadily and sustainably, which is good news. And unlike the concerns of an oversupply (units), the unit market has actually been our strongest auction performer.”
Mr Lancashire says they are currently working on a marketing campaign targeted at interstate and overseas investors, expats and buyers keen to move from southern capitals to the Sunshine State. He says he expects to see further growth in the Brisbane property market.
A recent report by CoreLogic found that Brisbane was leading the nation in all four property performance indicators for the first time in more than a decade – defying the downturn in other mainland capital cities. The only other capital city to record growth in the past month was Adelaide.
In July, Knight Frank’s head of residential research for Australia Michelle Ciesielski said she expected Brisbane to record a sustainable annual growth of 3 to 5 per cent by year’s end.
Brisbane now has 23 suburbs where the median house sales price is more than $1 million, according to CoreLogic. There is only one suburb where the median unit sales price is over $1 million – Tennyson. The median house price in the Brisbane LGA is currently $680,000, up 2.6 per cent over the past 12 months.