Australia is on the brink of having its second million-dollar city, with rising property prices pushing Brisbane’s median house price closer to the $1 million mark.
For borrowers and lenders, this signals shifting affordability dynamics and changing mortgage requirements.
According to PropTrack’s latest home price data, Brisbane’s median house price has reached $977,000, following 9.6% growth over the past 12 months.
Sydney remains Australia’s most expensive city, with a median house price of $1.425 million, reflecting a 3% annual increase.
The ACT is also approaching the million-dollar milestone, with its median house price now at $956,000, despite a 2% decline over the past year.
REA Group senior economist Eleanor Creagh anticipates that Brisbane will surpass the $1 million median price level within the coming months.
She notes that nearly half of Southeast Queensland’s suburbs already have medians above $1 million, highlighting strong demand.
Propertybuyer CEO Rich Harvey reinforces this outlook, citing interstate migration and lifestyle appeal as key drivers of Brisbane’s housing market. He points out that there are now 1,194 suburbs or towns nationally with median house prices exceeding $1 million, an increase from 1,144 in September 2024.
For mortgage lenders and borrowers, these trends underline the need for adjusted borrowing strategies and loan structures.
Rising property values may increase loan-to-value ratios (LVRs), require higher deposits, and push more buyers towards alternative financing options.
Harvey notes that investment expectations have also shifted, with investors who once targeted $500,000 properties now considering purchases in the $750,000 to $1 million range.
With Brisbane’s projected growth rate of 8% to 10% in 2025, lending policies and mortgage affordability assessments will need to evolve to meet demand. Homebuyers and investors alike should carefully evaluate their borrowing capacity, deposit requirements, and long-term repayment strategies in response to a rapidly changing market.
