Melbourne in Australia,
has always been a position to protect two and fight for one,
While ranking as Australia's second largest city,
Keep attacking Sydney!
But now,
Melbourne's position is too awkward...
Not to mention the impact on Sydney,
It's even going to be overtaken by Brisbane!
Housing prices are rising all over Australia,
Only Melbourne is in the doldrums,
Compared to Brisbane,
The gap is too big...
01
Housing prices in Australia have skyrocketed, but Melbourne has only risen by 3%! It has been completely crushed by Brisbane, and the gap may be even greater in the future!
Australia's three major capital cities, Sydney first, Melbourne second, Brisbane third, this is the consensus of everyone.
Thanks to population growth, Melbourne has been attacking Sydney, but this impact is getting weaker and weaker... Now, Melbourne may not even be the second largest city!
Looking at the latest statistics, house prices are soaring across Australia, but Melbourne is in a special situation, although Melbourne has also attracted many overseas immigrants, but the increase in house prices is very limited.
The latest CoreLogic data shows that Melbourne's median house price rose by 3% to April this year, well below the 4.2% wage growth rate. Despite the average house price of $941698, the median house price is still less than $600,000 in some places close to Port Phillip Bay.
Looking at Brisbane, the median home price in Brisbane has risen by 15.9% over the past year to $920046, almost overtaking Melbourne!
Sydney is still Australia's most expensive city, with a median home price of $1,421,000, but Sydney's house prices are growing at an annual rate of 9.6%.
Of course, there are two other cities in Australia where house prices are also skyrocketing, with the median price of a home in Perth soaring 21.3 per cent to $753947 and Adelaide rising 13.9 per cent to $800648.
With the exception of Hobart and Canberra, Melbourne has seen the lowest house price increases in Australia.
Although housing prices do not fully represent the scale of a city's development, housing prices can reflect the development potential of a city to a certain extent.
A large part of the reason why house prices in Perth and Brisbane are soaring now is because of interstate immigration, many people in Australia have moved from Melbourne to live in Queensland, even if they live in remote areas, and do not want to continue to live in Australia's second largest city
More crucially, Brisbane's development is more than meets the eye. As the host of the future Olympic Games, Brisbane will definitely invest heavily in infrastructure and housing in the coming period, and the upgrading of the entire city and the high exposure brought by the Olympic Games may make Brisbane usher in a leap forward.
With a better environment and climate, coupled with unlimited development potential, Brisbane may indeed be expected to surpass Melbourne to become Australia's second largest city in the future.
And Melbourne, let alone counterattacking Sydney, needs to do their best to keep their current position.
02
A large number of investors have poured into Australia! The safe haven property has great advantages! However, Melbourne has been abandoned...
When the international situation becomes more and more chaotic, Australia's safe haven attribute has become one of the biggest advantages in attracting immigrants, attracting countless overseas wealthy people to invest in Australia.
图片来源：courier mail
According to the latest report co-authored by Kollosche and industry analyst Michael Matusik, Australia regained the world's number one spot in attracting millionaires to the country in 2023, with more than 5,200 millionaires investing in property in Australia in one year.
Meanwhile, PropTrack's latest Home Price Index showed that Australian house prices rose 0.23% month-on-month in April, a record high, and 6.6% year-on-year.
Kollosche's Property Price Drivers report found that demand for Australian property from overseas buyers is at an all-time high. As of June 2023, Australia's net migration has increased by 500,000, more than double that of 2019.
The report points out that the place of residence of the rich in Australia has changed, and the rich used to prefer Sydney and Melbourne, but now, Sydney is still the first choice of the rich, but the second place is no longer Melbourne.
Queensland's Brisbane and Gold Coast have become the new darlings of the rich.
Brisbane is the third largest city in Australia, with perfect infrastructure and beautiful environment, and the Gold Coast is a world-renowned tourist city.
The Gold Coast, in particular, is home prices that are also rising, but they are much more cost-effective than Melbourne and Sydney.
Another reason for the rich to abandon Melbourne: the highest property tax in Australia!
After Melbourne's property tax reform, stamp duty, windfall tax, foreign investor surcharge combined with the current RBA's high interest rates, investors are clearly not wasting more money on these areas.
Investors, including those from China, are now not looking too much at home in Melbourne, but are now looking at Brisbane and the Gold Coast, which are more promising cities.
Even if the RBA cuts the official cash rate in the future, Melbourne may not perform as well as Sydney, Brisbane and other cities, and property tax is a major barrier to investors.
Not to mention the potential impact of the Olympics!
03
Editor's conclusion
Melbourne was Australia's second largest city for a long time, after Sydney. In all respects, Melbourne wanted to surpass Sydney to become Australia's No. 1, but unfortunately it backfired.
It is unclear whether Melbourne will be able to maintain its second place in the future...
Although housing prices are not fully representative of a city's development, they can definitely reflect the city's development potential to a large extent. It's an indisputable fact that Brisbane is about to overtake Melbourne in house prices.
If Melbourne does not make adjustments to property tax in the future, the property market will only continue to be sluggish...