Brisbane suburbs may reach $8 million prices,
After the Sydney Olympics, house prices increased significantly by 66 percent. Could a similar scenario unfold in Brisbane soon?
In recent years, south-east Queensland has experienced an extraordinary boom in housing prices. Suburbs like Warana on the Sunshine Coast have witnessed over 38 percent growth in just one year.
Consequently, this rapid change has left many local residents astonished. However, economic forecasts suggest that Queensland’s price boom is far from finished.
Dr. Diaswati “Asti” Mardiasmo, chief economist at PRD Real Estate, is analyzing the impact of the Sydney 2000 Olympics. She believes it can provide valuable insights into Brisbane’s housing market future.
In the early 2000s, median house prices in Olympic suburbs such as Newington and Homebush experienced notable increases. Specifically, they grew by 38.5 percent two years post-Olympics and 66.4 percent three years later.
Moreover, within just three years, the median house price in Sydney jumped from around $280,000 in 2000 to over $445,000 in 2003.
This historical context serves as a warning regarding potential price increases. If Brisbane follows a similar trajectory and lacks sufficient housing supply, prices could rise dramatically.
Currently, South Brisbane has a median house price of $1.5 million. However, projections indicate it could reach a staggering median of $8.2 million by 2035.
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Bowen Hills might experience a median house price of $8.5 million. In contrast, Chandler could see its median soar to $8.9 million.
Meanwhile, down on the Gold Coast, areas like Main Beach and Mermaid Beach are projected to reach impressive median prices. Specifically, Main Beach could reach $18.3 million, while Mermaid Beach may hit $16.1 million by 2035.
Dr. Mardiasmo acknowledges that some may question whether these prices are realistic. She believes this skepticism is reasonable and notes there’s potential for prices not to reach these levels.
However, she emphasizes that it’s better to be prepared than caught off guard. Even if the growth occurs at half the anticipated pace, substantial increases will still happen.
Thus, a $2 million median house price could become common in many areas. It’s crucial for potential buyers and investors to consider these projections seriously.
