There is always a lot of attention on Sydney and Melbourne’s affluent areas and property markets, but what about the wealthy Australians in Brisbane?
Where do they live?
Brisbane’s house prices have seen the steepest annual climb in 13 years as the city’s property market comes to grips with relentless Covid-19-induced demand for property.
In 2021 the city experienced a once-in-a-generation property boom that resulted in almost 400 suburbs joining the million-dollar club.
Unfortunately, Queensland postcodes didn’t feature on the ATO’s recent top 10 suburb rich list.
However, there is an abundance of wealthy residents and high-priced properties, so with the help of realestate.com.au, Domain Group, and census data, I’ve put together my own list of exclusive areas where Brisbane’s richest reside.
1. 4005 (Teneriffe, Inner Brisbane)
Median weekly household income: $2,476
Median house price: $2.74 million
According to Corelogic data, the Inner Brisbane suburb of Teneriffe has the highest median house price of any area across the Queensland capital.
Despite being an industrial town in the past, the proximity to the city and riverside views has made it ideal for affluent, young Australians with average ages of just 20-39 and median weekly household income of $2,476, according to census data.
With few houses in this inner-city location, the median house price comes in at a whopping $2.74 million.
However, even units in Teneriffe are more expensive than the rest of Brisbane with a median of $683,000.
2. 4171 (Bulimba)
Median weekly household income: $2,433
Median house price: $1.54 million
Builmba’s leafy streets and large blocks attract the Queenslanders able to spend big on impressive houses and an elegant lifestyle.
Sitting just 4km from the city and with all the amenities you could ever need, Bulimba is popular with young and established professionals.
Bulimba houses are seeing an impressive amount of interest with an average of 609 visits per property listing, way about the state average of 374.
With its close proximity to the city and gorgeous waterfront cottages, Bulimba has a median house value of $1.54 million, and residents earn an average of $2,443 per household, per week.
3. 4155 (Chandler)
Median weekly household income: $2,064
Median house price: $1.78 million
The exclusive suburb of Chandler is a high-demand market with an impressive median property price of $1.78 million to match its median weekly household income of $2,064.
The peaceful and secluded semi-rural suburb consists largely of bushland and residential properties on acreage and is close to Brisbane’s major commercial precincts of Carindale and Capalaba and the CBD is just 20 minutes away.
4. 4007 (Hamilton)
Median weekly household income: $1,894
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Median house price: $1.55 million
Despite a slightly lower median resident income of $98,488, Hamilton houses alone have grown 9% over the last five years to a median of $1.48 million.
The affluent and upscale postcode is popular for riverside high-end dining and a hip weekend food market with live gigs attracting a young average resident age of 20-39.
5. 4005 (New Farm)
Median weekly household income: $1,802
Median house price: $2.15 million
Once the humble home of immigrants and workers, New Farm is now popular and low-maintenance living for people who like food, fun, and farmer’s markets right on their doorstep.
Thanks to the increasing desirability of the area, New Farm has enjoyed an enormous price growth in its property in the last 20 years as some of Brisbane’s high-income earners flock to take advantage of the exclusive lifestyle.
Like Bulimba, property demand in New Farm is strong, with realestate.com.au recording 841 visits per property for listings in the area, nearly double the Queensland average of 374.
What's ahead for Brisbane property prices in 2022?
We have now entered the next phase of the Brisbane property cycle, one where the market is cooling and price growth is slowing.
And while property prices will correct in some locations, they will hold steady in others and still grow strongly in others - you see...there is not one "Brisbane property market."
And there will not be a property “crash” of Brisbane property prices as some commentators are predicting.
For house prices to “crash”, you need to have forced sellers and nobody there to buy their properties.
This only happens at time of high unemployment, but currently anybody who wants a job to help to get a job and with rising wages, it’s unlikely that we will see many distressed sellers forced to sell.
Sure some recent buyers will find high mortgage costs a financial challenge, but there is likely to be little mortgage stress in Australia as 50% of homeowners have no mortgage on their home at all and most of the other homeowners – those who bought more than a year or two ago – will have substantial equity in their properties and are months in advance of their mortgage payments
However, some who recently purchased a property and haven’t experienced market cycles will find the current market conditions are concerned.
They should take comfort in the fact that property corrections tend to be short lived, and the Reserve Bank doesn’t want to crash the housing market – it wants that about as much as it wants another strain of coronavirus.
These property owners should remember that property values are once again going to rise substantially over the long-term, underpinned by our rising population at a time of significant undersupply of properties and the increasing wealth of our nation meaning we’ll be able to pay more for our homes.
And the situation will only be exacerbated with the opening the floodgates for migrants who don’t bring a home with them when they come to Australia.
Over the past 42 years, Brisbane has enjoyed an average annual price growth of clode to +7% for houses and there is no reason to think this trend won't continue in the future.