Realestate.com.au published an article claiming that interstate buyers are reshaping Brisbane’s inner‑city property market, with new relocation data from removalist platform Find a Mover (tracking over 250,000 moves) showing Melburnians and Sydneysiders are driving a wave of moves into Brisbane’s most expensive suburbs.
According to Real Estate Buyers Agents Association of Australia (REBAA) president Melinda Jennison, buyers from Sydney and Melbourne arrive with more equity and they often come from higher‑income labour markets, which gives them greater purchasing power than Brisbane locals.
This is pushing locals out of premium inner‑city suburbs and into more affordable outer‑northern areas.
“Buyers coming from higher-priced markets may have built up more equity, and some may be moving from employment markets where incomes have been higher”, Jennison said.
“By comparison, local buyers may not always view Brisbane as affordable, especially when local household incomes are taken into account”.
Find a Mover’s founder and director, Howe Tran, says Brisbane sits in a “sweet spot” because it is cheaper than Sydney/Melbourne, offers strong lifestyle appeal, and allows interstate movers to upgrade significantly.
“People selling in those expensive southern markets are moving up the property ladder when they buy into Brisbane because they’re getting significantly more for their money”, Tran said.
“That steady flow props up the numbers in a way that Sydney and Adelaide just don’t have … Brisbane sits in a sweet spot”.
Interstate buyers are reportedly attracted to Brisbane because it offers better value for money and lifestyle amenities, and because it has experienced strong property market performance.
I found this analysis strange, given that Brisbane dwelling values have risen significantly faster than those in Sydney and Melbourne over the past six years, making Brisbane median dwelling values the second-most expensive in the nation.
As a result, Brisbane house prices relative to the other capital cities are now tracking at their highest level since 2008:
CBA this month also released data showing that Brisbane’s housing affordability is the second worst in the nation, behind Sydney, with Melbourne now significantly cheaper:
Brisbane also now has the second-lowest gross rental yield in the nation, behind Sydney, according to Cotality.
Source: Cotality
Based on the fundamentals, Brisbane residents should now be moving south to Melbourne for affordable housing. Although for Sydneysiders, Brisbane remains relatively affordable.
