Brisbane, One of the Most Affordable Capital Cities in the Housing Market

Domain Group, Senior Economist Dr Andrew Wilson has said that the Sunshine State’s capital would have a similar year to 2014, with inner city, blue-chip areas outperforming the market.

“Within 10 kilometres of the city and that wide arch from Capalaba to Indooroopilly, upwards to Chermside and Enoggera, there are still good buying opportunities because prices aren’t much higher than they were four years ago. There’s quite good activity in the middle to upper price range, there’s still a perception that it’s good buying time,” he said.

Dr Wilson also predicted Brisbane’s growth would be better than most other capital cities, matching a new report from NAB, indicating that property values in Brisbane are tipped to accelerate throughout the rest of 2015 with a prediction of a 3 per cent jump before December.

Whilst Melbourne and Sydney are sustaining Australia’s housing market as spring selling season gets underway, most capital cities have experienced recent falls in value.

With this trend holding true, it is actually the most affordable end of the housing market in Brisbane, Adelaide and Perth that has recorded the best results.

According to Core Logic’s head of research, Tim Lawless, “Looking at which sector of the housing market is driving the highest capital gains, across the combined capital cities it has been the most expensive quartile of the market where growth has been the most substantial. Across the combined capitals, the top quartile of dwellings based on value has recorded growth of 12.3 per cent over the past twelve months, while the most affordable end of the market has recorded a lower growth rate of 8.5 per cent.”

According to Destiny Financial Solutions founder, Margaret Lomas, buyers priced out of other cities would likely see Brisbane as a good area to invest in.

She said that unlike Sydney and Melbourne, Brisbane’s more affordable and cooler market was great to buy in, because it wasn’t in danger of a meltdown.

Houses in South Brisbane have so far recorded median values of $807,794, followed by Cedar Creek in Moreton Bay median values sitting at $809,944 and New Farm median values right around $1,206,455.

Brisbane’s most expensive suburb to buy a house continues to be New Farm ($1,492,939 – median value), followed by Ascot ($1,290,733), Teneriffe ($1,206,455), Hamilton ($1,162,066) and Chandler ($1,138,935).

The most affordable suburbs to buy homes in Brisbane continue to be Russell Island ($222,398) and the Ipswich suburbs of Riverview ($228,673), Leichhardt ($230,900) and Basin Pocket ($231,242) were also affordable.