Brisbane’s property market has seen some of the most robust growth of markets across the country, supported by the pandemic-induced sea and tree-change shift.
The city had the strongest property market in 2021 exhibiting astonishing growth, with many locations experiencing 30% or more house price growth.
And as higher borrowing costs began to weigh heavily on property prices nationwide, Brisbane’s market has remained the most robust.
Prices in Brisbane only began to drop in mid-2022, for the first time since the pandemic began in early 2020.
Since peaking in June, Brisbane home values have now dropped by -8.1%, but remain 30.4% above pre-Covid levels, reflecting the enormity of the previous upswing.
And it was the prestige property market in particular which has enjoyed a flurry of interest from Sydneysiders and Melbournians looking to uproot and relocate further north in a lifestyle suburb.
Throughout 2022 Brisbane and the remainder of Queensland saw several record-breaking multimillion-dollar sales.
And the data leaves no doubt about which parts of the state the wealthiest residents prefer.
The top 10 most expensive Queensland properties sold in 2022 were spread along the coast – Sunshine Beach, Mermaid Beach, Carrara, Burleigh Heads, Noosa, Main Beach, Robertson, and Hawthorne.
Queensland’s top 10 list is topped by a $28.5 million house at 24 Arakoon Crescent, Sunshine Beach in Noosa, which sold in April.
The 4-bedroom 636 sqm oceanfront property fetched more than double what was paid for it less than a year ago.
The sale also marks the highest price paid on sought-after Arakoon Crescent to date, blitzing the $21.5 million price tag paid for number 4 on the same coveted street earlier in February, which places it second on the list.
In third place was 159 Hedges Avenue on Mermaid beach which sold for $21 million in April.
The 114 square, 4-floor property has 6 bedrooms, and 7.5 bathrooms and is within a short walk of the local cafes, restaurants, shops, and other amenities.
It wasn’t just houses which made the list too.
The penthouse in the Glasshouse development in Burleigh Heads was bought off the plan for $20 million in April, making it the most expensive home in the area and taking 5th place on the list.
The project is expected to be completed in late-2023.
Also, in 7th place is the penthouse in the Amani development on Main Beach in the Gold Coast which sold, also off the plan in April, for $19 million.
Here’s the full list.
Top 10 most expensive property sales in Queensland in 2022
|№||Street||Suburb||Sale price||Sold Date|
|1||24 Arakoon Crescent||Sunshine Beach||$28.5M||April 2022|
|2||4 Arakoon Crescent||Sunshine Beach||$21.5M||February 2022|
|3||159 Hedges Avenue||Mermaid Beach||$21M||April 2022|
|4||10 Maryland Avenue||Carrara||$20M||June 2022|
|5||The penthouse, 10 Goodwin Terrace||Burleigh Heads||$20M (off the plan)||April 2022|
|6||53 Witta Circuit||Noosa Heads||$19.5M||March 2022|
|7||The penthouse/3519 Main Beach Parade||Main Beach||$19M (off the plan)||April 2022|
|8||58 Seaview Terrace||Sunshine Beach||$18.78M||March 2022|
|9||673 Musgrave Road||Robertson||$17.25M||March 2022|
|10||154 Virginia Avenue||Hawthorne||$15M||February 2022|
What is driving record prices in Queensland’s high-end property market?
There are multiple factors that have contributed to an increase in demand for Queensland’s prestige property.
Firstly, interstate migration into Queensland has been a tailwind for housing demand, particularly in the southeast of the state.
The Covid-19 pandemic, lockdowns, and ongoing restrictions saw Australians reevaluate what they want from their home and Sydneysiders and Melbournians flocked north in search of more affordable property in lifestyle suburbs.
Some are workers taking advantage of new remote and flexible working arrangements, while others have brought forward retirement to relocate away from extended lockdowns which happened mainly in Victoria and NSW.
This is evident in migration data which shows that the Sunshine State has been particularly popular since the onset of COVID-19.
Another key driver of housing markets across Brisbane and the rest of Queensland is that values remain relatively low, particularly relative to the recent acceleration of values across the other east coast cities of Canberra, Melbourne, and Sydney.
And this is even taking into account the more extravagant price falls seen across Sydney and Melbourne as our property market and economy correct.
Brisbane’s median property price currently sits at $698,204, while Sydney and Melbourne’s median prices are much higher at $999,278 and $746,468 respectively.
A final note
While these top 10 highest property sales make interesting reading, they aren’t necessarily the suburbs I would recommend investing in.
At Metropole, we always advise on the importance of investment-grade properties and locations, rather than chasing a hotspot or growth area.
That’s areas and properties which hold their value over the long term, rather than benefit from an uptick in demand.
But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.
Because aside from remembering that you should focus your efforts on investment-grade properties and locations, you also need to remember that property investing is a process, not an event.
That means that things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.
And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.