Brisbane housing affordability at tipping point
Housing affordability in Brisbane is at a tipping point, with one of the Big Four banks signalling an end to the days of the Queensland capital being a much cheaper alternative to its southern counterparts.
Economists at ANZ believe the river city’s “relative affordability” compared with Sydney and Melbourne has likely reached its peak, with a further 10 per cent peak-to-trough fall in home prices forecast for both cities, while Brisbane prices continue to hold firm.
“We’re not suggesting the median house price in Brisbane is going to exceed Sydney’s, but the gap between the two may be at its peak,” ANZ senior economist Joanne Masters said.
“The connectedness of prices means that the affordability dial is unlikely to continue to shift further in Brisbane’s favour, particularly if there’s a supply-demand mismatch.”
Ms Masters said Brisbane was at risk of becoming a two-speed property market, with the supply of apartments coming on-stream unlikely to satisfy the demand for stand-alone houses from interstate migrants.