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 held strong.
Prices in Brisbane only began to drop this month, for the first time since the pandemic began in early 2020.
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 to a lifestyle suburb.
In the past financial year to June 2022, Brisbane has seen several record-breaking multimillion-dollar sales throughout Queensland, realestate.com.au data revealed.
And the data leaves no doubt which parts of the state the wealthiest residents prefer.
The Gold Coast made up the majority of the top 10, with six homes fetching a combined price of $128.63 million, and the area is also responsible for two apartments that made the cut – both of which are penthouses yet to be built.
Four homes in Noosa made the 10 most expensive sales list, three of which were in Sunshine Beach – and two on the same street.
Together those four homes sold for $88.25 million, the data shows.
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 a nearby property on the same coveted street in February.
Meanwhile, in second place on the top 10 most expensive properties list for Queensland was 41 The Promenade, Surfers Paradise.
The huge 6-bedroom 2,963 sqm waterfront property sold for $26.88 million in October 2021.
Also on the Gold Coast, coming in third place was 213 Hedges Ave, Mermaid Beach, which sold a month later in November 2021 for $21.75 million.
This was another waterfront property, this time with 20 metres of uninterrupted beach views and direct beach access.
In fourth place was 4-6 Arakoon Crescent, Sunshine Beach – the second home on that street to break into the state’s top 10 most expensive list in the past 12 months.
It sold for $21.5m in March this year.
Here is the full list.
Top 10 most expensive property sales in Queensland in 2021-22
- $28.5 million – 24 Arakoon Crescent, Sunshine Beach
- $26.88 million – 41 The Promenade, Surfers Paradise
- $21.75 million – 213 Hedges Ave, Mermaid Beach
- $21.5 million – 4-6 Arakoon Crescent, Sunshine Beach
- $21 million – 159 Hedges Ave, Mermaid Beach
- $20 million – The penthouse, 10 Goodwin Terrace, Burleigh Heads
- $20 million – 15-17 King Arthur’s Court, Sovereign Islands
- $19.5 million – 53 Witta Circuit, Noosa Heads
- $19 million – The penthouse/3519 Main Beach Parade
- $18.785 million – 58 Seaview Tce, Sunshine Beach
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 have seen Australians reevaluate what they want from their home.
The sea- or tree-change shift shows people have refocused their attention on what is around them, with buyers increasingly venturing out of their usual neighbourhoods in search of a different lifestyle.
Because home is no longer just the place we rest, it has fast become the place we work, play, and even self-isolate for a period of time.
This means we’ve seen some homeowners take advantage of remote and flexible working amid the COVID-19 lockdowns and work-from-home orders and move north.
Meanwhile, others brought forward retirement and relocated away from lockdowns.
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.
With typical mortgage rates at record lows, CoreLogic estimates around 41% of properties across Greater Brisbane would be cheaper to service a mortgage than rent.
This compares to 30.3% of properties across the ACT, just 3.3% of properties across Melbourne, and 2.1% of properties across Sydney.
The high share of properties that may have cheaper mortgage serviceability than rent is also a function of fairly robust growth in rents across Brisbane, where house rents increased 6.4% in the 12 months to April, and unit rents increased 2.1%.