BRISBANE’S median house price is tipped to hit $2.24 million by 2043 after growing more than 300 per cent in the past 25 years.
BRISBANE’S median house price is tipped to hit $2.24 million by 2043, if property values continue to rise at the same rate as they have in the past 25 years.
New research by CoreLogic and Aussie Home Loans reveals the Queensland capital’s median house value has increased by $16,290 per annum or more than 300 per cent overall in the past quarter of a century to sit at $535,292.
It’s hard to believe, but in 1993, the average price of a house in Brisbane was just $128,000.
The report also reveals the best performing suburbs for price growth over the past
25 years, based on the change in median prices between 1993 and 2018.
The Brisbane riverside suburb of Bulimba has experienced the greatest capital gains growth in the past 25 years, with house values rising a whopping 876 per cent between 1993 and 2018.
A quarter of a century ago, you could buy a house in the now exclusive, riverside suburb for an average price of just $133,000, but now it has a median house price of $1.3 million.
New Farm has seen the next biggest gains, recording an 852 per cent jump in house values in 25 years followed by Hawthorne, which experienced an increase in its median house price of 672 per cent to $1.15 million during that period.
On the Sunshine Coast, Mudjimba’s median house value has increased the most in 25 years, rising 656 per cent to $724,500.
Dicky Beach and Sunshine Beach have experienced similar gains in house prices.
On the Gold Coast, Mermaid Beach topped the list, with a 700 per cent rise in house values in the past quarter of a century.
The median house value in the suburb has risen from $195,000 in 1993 to $1.56 million today.
Paradise Point, Coolangatta and Burleigh Heads have also experienced strong capital gains in that period.
CoreLogic pointed out the extrapolations did not take into account how economic and demographic conditions might play out over the next 25 years or how housing demand and supply may evolve.
Aussie Home Loans chief executive James Symond said he expected Brisbane to perform well over the long term, given house values grew more than 10 per cent per annum between 2001 and 2004.
“Perhaps the greatest change we are seeing is Brisbane’s growth in higher density housing, with the share of apartment sales to all residential property sales growing from 19.4 per cent to 30.2 per cent over the past 25 years,” Mr Symond said.
“I expect this trend to continue as apartment living grows in popularity across Brisbane, where a larger proportion of the population will choose to live closer to the CBD and transport corridors.”
But affordability remains a problem, with buyers in Brisbane now needing to dedicate 119.5 per cent of their annual gross income to raise a 20 per cent deposit.
Brisbane’s Paul Leaver is selling his family home in Paddington for the first time in 70 years.
The four-bedroom house at 96 Beck Street was bought by his grandparents in 1948 for just 575 pounds, which is equivalent in value to $34,750 today, and paid it off in just three years.
“How good would it be to pay off a house in three years now?!” Mr Leaver said.
The house next door at 94 Beck Street recently sold for 15 times what it was bought for 30 years ago.
He remembers growing up in the home with his three brothers and sisters and wishing he lived further out of town because it wasn’t regarded as a desirable area more than 25 years ago.
“We always wished we had a bigger yard,” he said.
Selling agent Daniel Argent of Urban Property Agents said he was not surprised the median house value in Paddington had jumped more than 500 per cent in the past quarter of a century.
“It’s a big number but I’m not surprised given the shift in people’s behaviour,” Mr Argent said.
“Twenty-five years ago, the inner city wasn’t a sought-after place to live — it was a real working class area and the richer people lived further out.
“There’s definitely been a major shift towards people living closer to the city.”
Mr Argent said he expected the suburb to continue to experience house price growth due to strong interstate demand.
BRISBANE SUBURBS WITH THE STRONGEST CAPITAL GAINS IN 25 YEARS
Suburb Median price 1993 Median price 2018 Change in median price in 25 years
Bulimba $133,000 $1.2975m 876%
New Farm $181,125 $1.725m 852%
Hawthorne $149,000 $1.15m 672%
Seven Hills $130,000 $920,000 608%
Grange $135,000 $942,500 598%
Camp Hill $130,000 $899,000 592%
Paddington $160,000 $1.1055m 591%
Hamilton $189,000 $1.3m 588%
West End $153,025 $1.048m 585%
Norman Park $135,000 $915,000 578%
(Source: CoreLogic, Aussie Home Loans)
Brisbane’s most expensive suburbs
Inner city favourite New Farm is officially Brisbane’s most expensive suburb, with a median house price of $1.7 million.
New figures from the Domain Group have revealed the top 20 most expensive suburbs, ranked according to median house price — and, with Brisbane’s property market now in the ascent as the best performing capital city in Australia, it paints a strong picture of where the city’s wealthiest residents are willing to park their cash.
Acreage hot spot Chandler, in Brisbane’s eastern suburbs, took out third place with a median house price of $1.585 million.
Old money favourites Ascot ($1.5 million median price) and Hamilton ($1.421 million median price) were closely followed by the inner eastern riverfront precinct of Bulimba, which had a median of $1,307,500.
Other suburbs that made the top 20 most expensive list included Hawthorne, where Gina Rinehart’s $18 million estate fronts the Brisbane River; Clayfield (median price $1.125 million) and Kangaroo Point (median $1.03 million) – home to the most expensive house ever sold in Brisbane: a clifftop mansion worth $18.48 million.
As well as taking out the title of Brisbane’s most expensive suburb, New Farm was also recently revealed as Brisbane’s best performing suburb for capital growth, with prices having soared nearly 90 per cent in the past five years.
New Farm’s remarkable success came as no surprise to local Ray White agent Matt Lancashire, who described it as the “Brisbane suburb for everyone”.
“There’s just so much in New Farm amenity-wise. New Farm is always the first place to boom and the last to cool off,” he said.
“My open numbers at the moment are huge. There’s such a strong desire to be in this suburb and I see that only continuing in the future years as Brisbane gets incredible new amenities like Howard Smith Wharves.”
In Ascot, long-term resident Jenny Richardson has listed her house at 7 Bale Street for sale but she’s not moving far — she’s already bought a new property only a couple of streets away.
Ms Richardson has lived in Ascot since 2000 and said she wanted to stay because of the lifestyle it offered.
“Ascot has just got that lovely family feel about it, it really is such a wonderful community,” she said.
“It’s so quiet it’s got that suburban feel but with the proximity to the city and everything else — the Gasworks, Portside and James Street — and that means it’s the best of both worlds.”
Fourteen kilometres southeast of the CBD, the acreage suburb of Chandler consistently rates as one of Brisbane’s most expensive suburbs. Home to enviable land sizes ranging from a hectare to four hectares, it’s sought after for its proximity to Manly, as well as its peaceful treed surroundings.
Local Remax agent Deborah Evans explained the “acreage precinct” of Chandler, Gumdale and Belmont was in high demand, although Chandler’s higher median house price of $1.585 million was partly due to its status as an acreage-only suburb.
“Every property in Chandler is an acreage property so naturally that will keep the median price high,” she said.
“Neighbouring Gumdale actually has more demand but its median is brought down by the non-acreage houses that sit on regular-sized residential blocks of land.”
She said demand always outstripped supply in the area and prices were rising — she recently sold a one-hectare acre block on Formosa Road for $1.6 million for land value only.
Ms Richardson’s Bale Street home is a four-bedroom, three-bathroom contemporary residence set on one of Ascot’s most sought-after streets and — even more importantly — in the Ascot State School catchment.
“I’ve loved living here; I’ve got wonderful views out to the hills and the house is functional and quite timeless,” she said.
“I think Ascot is one of those suburbs people are always going to want to live in. It’s got such a wonderful feel.”
Brisbane’s top 20 most expensive suburbs:
|1. New Farm||$1.7 million||11. St Lucia||$1,122,500|
|2. Teneriffe||$1.65 million||12. Auchenflower||$1.11 million|
|3. Chandler||$1.585 million||13. Paddington||$1.11 million|
|4. Ascot||$1.5 million||14. Brookfield||$1.1 million|
|5. Hamilton||$1.421 million||15. Kalinga||$1.049 million|
|6. Bulimba||$1,307,500||16. Kangaroo Point||$1.03 million|
|7. Fig Tree Pocket||$1,202,500||17. South Brisbane||$1,026,250|
|8. Hawthorne||$1.2 million||18. Hendra||$1.025 million|
|9. Pullenvale||$1.2 million||19. West End||$1.02 million|
|10. Clayfield||$1.125 million||20. Highgate Hill||$1 million|
Highgate Hill:Brisbane’s most tightly held suburbs
When people move to Highgate Hill, they fall so in love with the suburb they don’t want to leave.
Domain Group data from 2017 showed the suburb was the most tightly held within five kilometres of the Brisbane CBD, with property owners loath to move outside its borders.
Highgate Hill, where the dominant demographic is families, ticks those boxes. Two kilometres south of the Brisbane CBD on the Brisbane River, the suburb is in the sought-after Brisbane State High School catchment and has great connectivity via buses and trains.
It’s also 12th most walkable suburb in Brisbane, according to Resolution Research.
“To leave an area that meets all that criteria requires a really good reason,” says Dr Powell.
Despite being close to major activity hubs, the hilly suburb still holds onto its more relaxed, suburban vibe, which is a huge part of its appeal, says Cam Milne, co-owner of Vvaldmeer cafe and a local resident.
“I think with West End now having been very much swamped with cafes, bars and trendy shops, it’s only natural that Highgate Hill would follow.”
Matt Pendragon, Shed 41 Café & Galleria owner, decided Highgate Hill was a perfect area to open a “relaxing, dog friendly, phone-charging, ‘sit down and have a brew’ space”.
He lives in the area too, and is often surprised to learn how many locals have been in Highgate Hill their whole lives, some even living in the houses they grew up in.
“The suburb, although being only a stone’s throw from the CBD, is so peaceful and tranquil, the houses are well kept, and the sense of community is stronger here than in any other place I’ve lived.”
Being tightly held puts pressure on prices, and the result has been 26.8 per cent growth over the past five years, according to Domain data.
The median house price broke through the $1 million barrier last year after rising steadily, but since then there has been a slight pullback, says Dr Powell. It’s now sitting at $950,000 and the median unit price is just over $440,000.
“If you take away last year’s performance, the suburb has overall been outperforming Brisbane as a whole,” she says.
“In terms of house prices it was growing at a healthy rate between 2013 and 2017 and there were periods of time [where] there was double-digit growth.”
After children have flown their Highgate Hill coop, their parents don’t want to leave but they do want to downsize, while still staying within the boundaries of the suburb. That’s where apartment developments tailored for owner-occupiers, such as Sierra Nuvo, come in, making up part of the suburb’s diverse housing stock.
The 44-apartment luxury development launched in August, and has been popular with downsizers from the 4101 postcode, including Highgate Hill, South Brisbane and West End.
It offers two, three and four-bedroom apartments, plus four premium penthouses, with prices ranging from $785,000 to $2.835 million. Each apartment includes two car parks, while penthouses come with three car parks as well as a storage cage.
Stephen Browne, principal of Skyring Real Estate, working with the developer behind Sierra Nuvo, says the development at 18 Jones Street is just 900 metres’ walk from Brisbane State High School, two kilometres from the Brisbane CBD, close to bus stops and is in one of the “super quiet” spots in Highgate Hill.
It’s in an elevated position with city views that can never be built out, he adds.
“You can almost hear the crickets when you drive into the street,” he says.
“From the sky garden on the rooftop, which has a 15-metre infinity edge lap pool, wading pool and spa, barbecues and entertaining pods, there are unencumbered 300-degree views that will be there for the rest of time.”
He says buyers have been particularly drawn to the level of finish of the luxury apartments in the building, with designer kitchens featuring granite stone benchtops, the latest Smeg and Pitt appliances, integrated fridge/freezer, integrated dishwasher, Vintec drinks fridges, and a separate custom laundry for each residence.
Will the new Brisbane State High School catchment affect property prices?
Changes made to Brisbane State High School’s catchment zone are already affecting properties for sale in the area, according to local real estate agents.
The state government released new catchment maps last week which revealed Brisbane State High School’s catchment zone could be cut by 25 per cent to manage pressure on its rising enrolments.
The school’s current catchment stretches through West End and out to Dutton Park but, under the new draft catchment, students from more than 500 households in Dutton Park, Woolloongabba and Highgate Hill would no longer be eligible for direct entry to State High once the neighbouring high-rise school in Dutton Park opens in 2021.
It’s been a devastating revelation for homeowners who bought in the area specifically to be in the catchment of Queensland’s top performing state high school, said Sam Peterffy, of Harcourts Homeside.
Not only are they upset at being kicked out of the catchment, they’re worried the value of their property will fall because if it, she said.
“Of course the people who are already living here are worried — many of them bought here for the school,” she said.
“I feel sorry for these people. They might have young children, aged five and under, and bought here planning for their children’s future. Now that’s up in the air. It’s not a great situation for them.”
Ms Peterffy said the local property market had already been affected.
“From a buyer perspective, I have people who were looking in these areas and have straight up said they’re no longer looking at Dutton Park or anywhere that’s out of the catchment,” she said.
Brisbane State High School is a 3200-student strong, selective GPS school, sought-after for its top academic results and extensive extra curricular program.
Demand for places is so high, the school employed an investigator this year to uncover families rorting the catchment system.
Ben Salm of Place Estate Agents is selling a beautiful six-bedroom family home at Grantham Street, Dutton Park, that is currently in the State High catchment, but would be bumped out under the new plan.
He said it had already affected the property’s desirability for some buyers.
“It’s something we’ve seen a fair bit of with feedback from the buyers coming through,” he said.
“They’re unsure about the new school because it’s all so unknown at this stage; that creates a hesitancy and then you get less competition, which potentially means lower prices.
“Because this house is now looking like it’ll be out of the State High catchment, the feedback we’re getting suggests the price could be $50,000 less than what it might have been worth three to six months ago.
“There is a grace period though, so you never know what will happen.”
It’s important to note the effect on current and future families will not be immediate. Brisbane State High School students living in the proposed catchment zone for the new school will be allowed to remain enrolled at State High for the duration of their studies, while their siblings will still be able to enrol under transitional arrangements.
The government also said that families with primary school children living in a street which appears on both catchment maps can choose to enrol their child at either school.
But the changes are causing a lot of uncertainty. Ms Peterffy recently sold a house at Gloucester Street, Highgate Hill, a street where some houses will still fall in the catchment and others won’t.
This particular house will still be in the catchment, so the competition to secure it was strong, with four offers in one weekend, Ms Peterffy said.
“I had a couple who argued about it. The husband was saying that the new school was likely to be great but the wife was really worried about it,” she said.
“She just kept saying, ‘But it’s not going to be Brisbane State High, it won’t be the same’. So for them, the fact this house would still be in the catchment in a few years’ time was very important to them.
“That said, there will always be people who will want to buy in Dutton Park anyway. It’s the best suburb in Brisbane in my view.”
And Ms Peterffy said the silver lining would be in the new school, Inner City South State Secondary College, which had the potential to bring new buyers to the area long term.
“Some buyers who may not previously had Dutton Park and surrounding areas on their radar may come here because there is going to be a shiny new school with the best of everything and a connection to the University of Queensland,” she said.
“I know everyone wants to be in the State High catchment right now but my prediction is this new school will be in the top 10 state high schools in Queensland very quickly.”
Mr Salm said the property market could pick up again in these areas once the plans for the school are finalised and released to the public.
“It could actually create quite a bit of excitment in the area once there’s a lot more detail released and prices could go up again,” he said.
“I think in the long term this school will be competition for State High but at the moment it’s making buyers unsure about being in the area, and will only make competition for property staying in the State High catchment even tougher.”
The maps and the enrolment management plan are out for public consultation until September 30.
- Developments7 months ago
Brisbane and interstate investors drawn to up-and-coming King Street precinct
- Opinion2 years ago
Are we headed for a housing crash — or not?
- Real Estate3 years ago
Brisbane’s 5 most affordable suburbs within 15km of the CBD
- Market Place8 months ago
How to make $1 million ‘flipping’ houses
- Market Place8 months ago
Looking for a property to rent? Good luck finding something here
- Market Place2 years ago
Brisbane real estate: Most expensive homes see growing sales results
- Infrastructure8 months ago
How train lines are driving property prices
- Developments4 years ago
Investors turning to Brisbane