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BRISBANE’S median house price is tipped to hit $2.24 million by 2043, if property values continue to rise at the same rate as they have in the past 25 years.
New research by CoreLogic and Aussie Home Loans reveals the Queensland capital’s median house value has increased by $16,290 per annum or more than 300 per cent overall in the past quarter of a century to sit at $535,292.
It’s hard to believe, but in 1993, the average price of a house in Brisbane was just $128,000.
The report also reveals the best performing suburbs for price growth over the past
25 years, based on the change in median prices between 1993 and 2018.
The Brisbane riverside suburb of Bulimba has experienced the greatest capital gains growth in the past 25 years, with house values rising a whopping 876 per cent between 1993 and 2018.
A quarter of a century ago, you could buy a house in the now exclusive, riverside suburb for an average price of just $133,000, but now it has a median house price of $1.3 million.
New Farm has seen the next biggest gains, recording an 852 per cent jump in house values in 25 years followed by Hawthorne, which experienced an increase in its median house price of 672 per cent to $1.15 million during that period.
On the Sunshine Coast, Mudjimba’s median house value has increased the most in 25 years, rising 656 per cent to $724,500.
Dicky Beach and Sunshine Beach have experienced similar gains in house prices.
On the Gold Coast, Mermaid Beach topped the list, with a 700 per cent rise in house values in the past quarter of a century.
The median house value in the suburb has risen from $195,000 in 1993 to $1.56 million today.
Paradise Point, Coolangatta and Burleigh Heads have also experienced strong capital gains in that period.
CoreLogic pointed out the extrapolations did not take into account how economic and demographic conditions might play out over the next 25 years or how housing demand and supply may evolve.
Aussie Home Loans chief executive James Symond said he expected Brisbane to perform well over the long term, given house values grew more than 10 per cent per annum between 2001 and 2004.
“Perhaps the greatest change we are seeing is Brisbane’s growth in higher density housing, with the share of apartment sales to all residential property sales growing from 19.4 per cent to 30.2 per cent over the past 25 years,” Mr Symond said.
“I expect this trend to continue as apartment living grows in popularity across Brisbane, where a larger proportion of the population will choose to live closer to the CBD and transport corridors.”
But affordability remains a problem, with buyers in Brisbane now needing to dedicate 119.5 per cent of their annual gross income to raise a 20 per cent deposit.
Brisbane’s Paul Leaver is selling his family home in Paddington for the first time in 70 years.
The four-bedroom house at 96 Beck Street was bought by his grandparents in 1948 for just 575 pounds, which is equivalent in value to $34,750 today, and paid it off in just three years.
“How good would it be to pay off a house in three years now?!” Mr Leaver said.
The house next door at 94 Beck Street recently sold for 15 times what it was bought for 30 years ago.
He remembers growing up in the home with his three brothers and sisters and wishing he lived further out of town because it wasn’t regarded as a desirable area more than 25 years ago.
“We always wished we had a bigger yard,” he said.
Selling agent Daniel Argent of Urban Property Agents said he was not surprised the median house value in Paddington had jumped more than 500 per cent in the past quarter of a century.
“It’s a big number but I’m not surprised given the shift in people’s behaviour,” Mr Argent said.
“Twenty-five years ago, the inner city wasn’t a sought-after place to live — it was a real working class area and the richer people lived further out.
“There’s definitely been a major shift towards people living closer to the city.”
Mr Argent said he expected the suburb to continue to experience house price growth due to strong interstate demand.
BRISBANE SUBURBS WITH THE STRONGEST CAPITAL GAINS IN 25 YEARS
Suburb Median price 1993 Median price 2018 Change in median price in 25 years ;
Bulimba $133,000 $1.2975m 876%
New Farm $181,125 $1.725m 852%
Hawthorne $149,000 $1.15m 672%
Seven Hills $130,000 $920,000 608%
Grange $135,000 $942,500 598%
Camp Hill $130,000 $899,000 592%
Paddington $160,000 $1.1055m 591%
Hamilton $189,000 $1.3m 588%
West End $153,025 $1.048m 585%
Norman Park $135,000 $915,000 578%
(Source: CoreLogic, Aussie Home Loans)
Originally published as Brisbane house price to hit $2.2m