Brett Warren , National Director – Metropole Group
The latest Cotality Home Value Index shows housing values are still rising nationally, but the pace of growth is starting to moderate.
Let’s break down what’s happening in Sydney, Melbourne and Brisbane – and where the opportunities lie for homebuyers and investors.
Sydney values rose 0.5% in November, taking annual growth to 5.1% and pushing the median dwelling value to $1.27 million. That’s a slower pace compared to earlier in the year, reflecting affordability constraints.
Listings are only slightly below average, so supply isn’t as tight as in other capitals. For homebuyers, this means more choice and less competition than in Perth or Brisbane.
For investors, rental yields remain low at 3.0%, but Sydney continues to attract strong investor demand – nearly half of mortgage activity in NSW is investor‑driven. The long‑term capital growth story is what keeps Sydney appealing.
Melbourne values edged up 0.3% in November, with annual growth at 4.2% and a median value of $823,495. Interestingly, growth is strongest in the middle of the market rather than the lower quartile, suggesting demand from established buyers rather than first‑home entrants.
For homebuyers, Melbourne offers relative value compared to Sydney, with more accessible price points in the outer suburbs. Investors can expect yields around 3.6%, slightly healthier than Sydney, and steady long‑term growth.
Brisbane continues to shine. Values jumped 1.9% in November, with annual growth at a remarkable 12.8% and a median value now above $1 million.
Supply is tight, demand is elevated, and affordability pressures are less severe than in Sydney or Melbourne. For homebuyers, this means competition is fierce, but the upside potential remains strong. For investors, yields around 3.4% are reasonable, and the growth trajectory is compelling. Brisbane is benefiting from interstate migration, infrastructure investment, and lifestyle appeal.
Sydney and Melbourne remain safe, long‑term bets for capital growth. Brisbane is the standout performer, offering both growth and lifestyle advantages.
For homebuyers, the key is to balance affordability with opportunity. For investors, focus on quality assets in locations with enduring demand – whether that’s Sydney’s blue‑chip suburbs, Melbourne’s middle‑ring, or Brisbane’s growth corridors.
At Metropole, we believe the best opportunities come from buying strategically, not speculatively. The market might be shifting, but with the right guidance, you can position yourself to build lasting wealth.
