Brett Warren , National Director – Metropole Group
It’s been a solid six months of gains in Australia’s housing market, and July was no exception, with values climbing 0.6% nationally, according to the Cotality Home Value Index for July.
But zooming in on Sydney, Melbourne and Brisbane reveals some sharp contrasts in the pace – and sentiment – of growth.
Sydney continues to move steadily, with a 0.6% rise this month and a 1.8% quarterly gain. That’s a reflection of tight supply and improving confidence as interest rates head south. But affordability is biting hard. At $1.23 million, Sydney’s dwelling median remains Australia’s priciest, keeping many buyers at bay despite slightly stronger borrowing power.
Melbourne’s recovery is more subdued. A 0.4% rise in July and just 0.5% annual growth suggest ongoing uncertainty and buyer hesitation. Affordability is a factor here, too, but so is sentiment. Melbourne’s house rents barely nudged upward – only 0.1% this quarter – which might be dulling investor appeal for now.
Brisbane, on the other hand, is charging ahead. Dwelling values jumped 0.7% in July and are up 7.3% annually. Demand is being fuelled by interstate migration and relative affordability, with a median value still well below Sydney’s. In fact, Brisbane’s gross rental yields remain one of the highest among capitals, providing solid investor returns amid the upswing.
The takeaway? Markets may be rising together, but local dynamics matter more than ever.
Metropole’s strategic, location-led approach remains critical in navigating these shifts – helping clients not just keep up but get ahead.
