Queensland's Million-Dollar Suburbs Surge: A New Era of Property Growth

Queensland's real estate market is reaching new heights. The number of suburbs with million-dollar properties is at an all-time high. Both Brisbane and regional areas are seeing significant growth in property values. While this presents great opportunities, it also poses challenges for affordability.

 

• Brisbane’s Million-Dollar Surge

Brisbane’s property market is booming. The city tied with Sydney for the largest net increase in million-dollar markets over the past year. In total, 46 new or returning suburbs joined the seven-figure club. This brings the number of million-dollar suburbs in Brisbane to 149. Just two years ago, this figure was 114.

Despite this rapid rise, unit prices in Brisbane have not yet hit the million-dollar mark. New Farm, with a median unit value of $999,075, is the closest, followed by Teneriffe at $981,308. In terms of house prices, Hamilton has overtaken Ascot to become the most expensive suburb in Brisbane, with a median house price of $2.33 million.

 

• Regional Queensland on the Rise

The million-dollar market is not limited to Brisbane. Regional Queensland is also experiencing significant growth. The Gold Coast and Sunshine Coast lead the charge. The Gold Coast now has 55 suburbs with million-dollar homes, while the Sunshine Coast has 53.

 

Outside these major areas, Cairns is emerging as a rising star. Suburbs like Goldsborough and Palm Cove have both joined the seven-figure club. This growth reflects the increasing demand for regional living, driven by lifestyle changes and remote work opportunities.

 

• Erosion of Affordability

As property values rise, affordability in Queensland is becoming a concern. Brisbane’s median dwelling value is now $875,040, making it the second most expensive capital city in Australia. This increase in home prices has eroded much of Brisbane’s previous affordability advantage.

For many buyers, securing a home in this market is challenging. To afford a $1 million home, a household would need an annual income close to $200,000. This is a big jump from just a few years ago when lower interest rates and more affordable prices made it easier for buyers.

 

• The Demand Behind the Growth

The surge in property values across Queensland is being driven by several factors. A key reason is the strong flow of interstate migration. Many people are moving from other states to Queensland, especially to Brisbane and the surrounding areas. The city’s warm climate, lifestyle, and growing economy make it an attractive destination.

 

At the same time, there is a shortage of advertised listings and newly built housing stock. This lack of supply and high demand are pushing property prices higher. Even though the growth rate has slowed in recent months, it’s clear that Brisbane and its surrounding areas are in high demand.

 

• Opportunities in the Current Market

While the rising prices may be challenging for some buyers, there are still opportunities. Investors can benefit from the continued demand for property in both Brisbane and regional Queensland. Suburbs that have recently joined the million-dollar market offer strong potential for future growth.

 

For those considering moving to Queensland or investing in the property market, now is a crucial time to act. The market is still evolving, and prices are expected to rise further as demand remains strong.

Queensland’s property market is rapidly changing. Brisbane’s million-dollar suburbs are rising, and regional areas are becoming more desirable. However, affordability is a growing concern, and buyers need to know the financial requirements in today’s market.

Sources:

• CoreLogic Million-Dollar Markets Report, August 2024
• CoreLogic Property Market Research