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When Brisbane snatched the title of the top-performing city in Australia for luxury residential price growth in the latest Knight Frank study of the world’s global property hotspots, many in Sydney and Melbourne were surprised.
But in Brisbane, they weren’t. Chief executive officer of the Real Estate Institute of Queensland Antonia Mercorella said the local market was performing well, with 16 suburbs in the million-dollar club and strong activity, particularly at the $5 million-plus end.
Brisbane saw a 3.2 per cent rise in the price of prestige property over the year to March 2019. Photo: Place Estate Agents Bullimba
Brisbane came in at 14th in the world rankings, with a 3.2 per cent rise in the price of prestige property – defined as the top 5 per cent of the market by value – over the year to March 2019, comfortably bettering Sydney in 18th spot with 2.4 per cent, Melbourne at number 22 with 1.8 per cent and Perth at 23 with 1.8 per cent.
“There’s a mix of reasons for the strengthening Brisbane prime market,” says Michelle Ciesielski, Knight Frank’s head of residential research Australia. “Brisbane’s millionaire population continues to grow, prime properties continue to attract elevated interest from families migrating from Sydney and Melbourne, and local downsizers,” she said.
That perception of great value is something that’s constantly driving the migration of Sydneysiders and Melburnians north, as well as attracting overseas buyers and ex-pats looking for something gorgeous to live in for when they return home, believes prestige specialist Place New Farm managing director Judy Goodger.
Place Estate Agents recently sold a vacant 1100-square-metre block of land in New Farm for $11.3 million, and a three-bedroom apartment in the tightly held 1 Macquarie Street, Teneriffe for $4 million. “The market is doing well, there’s great confidence around, and people see Brisbane as a very affordable city that offers a great lifestyle, close to the beach and the CBD.”
With demand trending ever higher, the only brake on the market at the moment is a shortage of top property, says Matt Lancashire of Ray White New Farm. “I think the Coalition win has been very, very positive for real estate which is being reflected in the rising level of inquiries,” he says.
“And Brisbane and Queensland property is still quite under-valued compared to the southern states.”
Domain research analyst Eliza Owen says the increasing willingness now of banks to lend is also spurring on the Brisbane market, as well as migration and lifestyle factors.
“We’re seeing in the data that a lot of Sydneysiders are now looking towards south-east Queensland to buy property at the higher end of the market,” she says. “Brisbane has currently 20 per cent of the inquiries outside Sydney.”