City Beat June 2024: Brisbane overtakes Canberra as Australia's second most expensive capital
The Brisbane property market continued to experience significant growth over May, growth that took it past Canberra to become Australia's second most expensive capital city property market.
"With Brisbane housing values consistently posting solid capital gains while ACT values remain relatively stable, we saw a changing of the guard in May," CoreLogic Research Director Tim Lawless said.
"Brisbane overtook Canberra as having the second-highest median dwelling value across the capitals in May, a position Brisbane hasn’t recorded since 1997."
Brisbane's median dwelling value (which incorporates both units and houses), is now $843,000, above Canberra's $840,000.
It was another big month for the unit market (just townhouses and apartments). The 1.9 per cent growth took the median unit value above Melbourne to $615,000, above Melbourne's $614,000.
Brisbane's rolling quarterly growth is now 5.3 per cent, the strongest eastern seaboard capital. Brisbane's housing market was up 3.7 per cent over the same period.
CoreLogic's Home Value Index rose by 0.8 per cent during the month, marking the 16th consecutive month of growth and the largest monthly gain since October of the previous year.
Lawless attributed the strong market performance to extremely low levels of available supply in Brisbane and other strong markets. Brisbane's property listings are 34 per cent below the five-year average for this time of year. Despite an increase in vendor activity compared to last year, fresh listings are quickly absorbed by market demand, maintaining low stock levels and exerting upward pressure on prices.
What happened in Brisbane’s off-the-plan apartment market in May
There was only one new project for buyers to look at in May. It came from veteran Brisbane apartment developer Gardner Vaughan Group, who launched their Nundah village mixed-use development, DANBY LN.
The 12-level development comprises 84 apartments ranging from one to four bedrooms, priced between $599,000 and $3,199,000.
The project integrates residential units with ground-floor retail, commercial spaces, and extensive recreational facilities including a rooftop with BBQ facilities, a herb and vegetable garden and outdoor dining areas.
There were more developments submitted to the Brisbane City Council in May, a positive sign for future apartment supply.
One of the most anticipated was the first stage of Bulimba Barracks, the inner-city masterplan by Shayher Group.
The site, acquired from the Department of Defence in 2020, has undergone extensive demolition, retaining only a fabrication workshop from World War II.
The initial phase focuses on a 6,382 sqm block on Apollo Road, featuring two low-rise buildings with 69 apartments. Designed by the Buchan Group, these three-level buildings will be separated by a laneway from the restored workshop.
Mirvac too submitted major plans, however they're at the tail end of the inner-city precinct, the $1 billion Newstead waterfront precinct, Sky Waterfront.
The 27-level tower, the tallest in the precinct, will house 138 apartments.
With a focus on owner-occupiers, it includes a variety of unit sizes, and extensive amenities and public spaces to enhance connectivity and community engagement.
Developer Skyhold settled on its Balmoral site, where they're planning a $150 million apartment development.
The project includes four medium-density buildings, offering a mix of two and three-bedroom apartments, penthouses, and 14 townhouses. Approved by Brisbane City Council, the development is set to launch soon.
Huon Property Group received approval for a 15-level, 114-apartment tower at 22 Cleveland Street, Stones Corner, while there was another 226-apartment project on Cleveland Street approved for the family-run Idec Group.
Tim Forrester's Aria Property Group looks to have finalized its plans for its South Brisbane tower at 164-190 Melbourne Street.
They secured approval for a 14-level tower with 84 apartments designed in collaboration with Bates Smart and Richards & Spence.
Read more: Aria set for new South Brisbane apartment tower after council nod
Outside of the city in Rochedale, 17km south of Brisbane, Kinstone Group has sought to create a $380 million mixed-use community, Rochedale Terrace.
The first stage will introduce retail and dining options, a tavern, and a 75-room boutique hotel. Later stages will add around 280 apartments and more commercial spaces, aiming to provide diverse housing and community-focused amenities.
Read more: Kinstone plot $380 million Rochedale precinct, Rochedale Terrace
