The new east coast capital outranking Melbourne for property values

The median home value in Brisbane has surpassed Melbourne for the first time in 15 years following a staggering 50 percent increase in home prices since the onset of the pandemic in March 2020. CoreLogic Head of Research, Eliza Owen said the price data reflects “the substantial impact that the pandemic has had on housing preferences” in Australia. Before the pandemic, Brisbane’s median dwelling value was $187,000 lower than Melbourne’s and today it is $7,000 higher at $787,000.

Brisbane now has the third-highest median dwelling value among the capital cities, behind Sydney and Canberra. Home values in the nation’s capital overtook Melbourne in 2021, with Canberra’s median dwelling value rising 31 percent between March 2020 and today. Over the same time frame, Melbourne values rose by just 11 percent, which was the weakest growth among the capital cities. Melbourne was last year rated the third most liveable city in the world on the Global Liveability Index by the Economic Intelligence Unit, the highest ranking for any Australian city.

“[Brisbane’s] appeal amid an increase in remote work helped fuel strong population growth, increasing housing demand, driving down supply and making it a seller’s market,” Ms Owen said. “The reason for such varied capital growth outcomes may be partly due to lifestyle factors, where the appeal of South East Queensland rose through the pandemic. The normalisation of remote work for many professionals made interstate migration to Queensland more feasible, while Melbourne’s extended lockdowns from March 2020 through to October 2021 may have prompted people to leave the city.”

Net interstate migration to Queensland reached a record high of 51,500 in the year to March 2022, according to the Australian Bureau of Statistics. Over the same period, net interstate migration to Victoria was -20,000. “Net internal migration to Victoria bottomed out at a loss of -35,600 people in the year to June 2021, and was still negative as of June last year,” Ms Owen said. “Value falls across Melbourne were also exacerbated by the loss of overseas migration through COVID.”

Over the 12 months to June 2022, Brisbane’s population grew by 2.3 percent compared to Melbourne’s 1.1 percent. However, Melbourne’s residential population is almost double the size of Brisbane at an estimated 5,031,000 people compared to 2,628,000 in Brisbane.

Ms Owen also explained a technical reason why Brisbane’s median dwelling value has surpassed that of Melbourne. Dwelling median values combine all types of properties. If the data is separated into houses and apartments, Melbourne remains more expensive than Brisbane – but only just. Melbourne’s median house price is $72,000 higher than Brisbane and the median apartment price is $49,000 higher. “The reason for this is that Melbourne has a higher share of units as a portion of the dwelling market. Because units are generally lower value than detached houses, a higher portion of units brings down the median dwelling [value] across all houses and units.”

Ms Owen said Brisbane remains a seller’s market, although the pace of growth in home values is now easing.

“As home values in the city continue to rise, there is less claim to Brisbane being relatively affordable, and some prospective interstate movers may decide to remain in their city,” she said. “Recent weeks have also demonstrated there is some added risk to pockets of the Brisbane property market from extreme weather and flooding, which could impact demand in the near term.”

Australia’s housing debate is often dominated by affordability and supply, but a new collaboration between Brickworks and acclaimed architecture firm Kennedy Nolan argues the conversation should also focus on the quality and longevity of the homes being built.

The project, titled Our Next Neighbourhood, examines how suburban housing could evolve in response to shrinking block sizes, rising energy costs, increasing density and changing family structures.

Rather than proposing luxury dream homes, the initiative focuses on what its creators describe as achievable suburban housing models that are more flexible, sustainable, and better suited to modern Australian life.

Brickworks commissioned Kennedy Nolan to investigate what suburban housing might look like if “design, long-term liveability and enduring materials were placed at the centre of the conversation”.

The result is two housing concepts, known as the Street Terrace and Canopy Terrace, which explore higher-density living while maintaining access to green space, natural light and privacy.

The designs incorporate adaptable floorplans that can evolve as family needs change, along with passive design principles intended to reduce reliance on mechanical heating and cooling.

Brett Ward, General Manager of Marketing at Brickworks, said the company wanted to broaden the discussion around housing beyond simply increasing supply.

“Much of the housing conversation today is understandably focused on supply and affordability, but there is an equally important discussion to be had about the quality and longevity of the homes we build,” he said.

“We wanted to explore how thoughtful design, combined with durable, resilient materials, could create homes that not only function well today, but continue to support Australian families and communities long into the future.”

Kennedy Nolan said the project was partly inspired by concerns that contemporary housing often struggles to adapt to changing household structures and environmental pressures.

The architects said innovation in suburban housing was “essential” to address changing family groupings, energy use, urban heat island effects and growing disconnection from place.

According to the design team, the concepts draw on lessons from some of Australia’s most influential housing projects while seeking to create neighbourhoods with stronger links to landscape, community and local identity.

Rachel Nolan, founder of Kennedy Nolan, said the practice saw an opportunity to reimagine suburban housing as something “more connected to our climate, our landscape, our communities and our Australian identity”.

The project comes as policymakers, developers and planners continue searching for ways to deliver more housing without sacrificing liveability, neighbourhood character or long-term sustainability.

The new east coast capital outranking Melbourne for property values

The ability to work from home prompted many Australians to relocate to this city for lifestyle and affordability during the pandemic

Brickworks has enlisted acclaimed architecture studio Kennedy Nolan to explore how homes could become more adaptable, energy-efficient and connected to community.