The Brisbane median house price (MHP) is now less than half of Sydney’s level.
In fact, as at December 2015, Brisbane’s MHP was only 48% of Sydney’s result.
Brisbane’s median is currently $490,000 whilst Sydney is $1,025,000.
Will this $535,000 gap begin to close?
Will Sydney values drop?
Will Brisbane prices lift?
Would it me smarter to invest in Brisbane rather than Sydney?
All good questions have difficult answers, however, the chart below adds a significant clue.
Since our data started in 1980, the MHP trend shows three distinct periods where Sydney left Brisbane behind. On each of these occasions, Brisbane subsequently closed the gap. However, it is important to note that the gap was closed from both ends, Brisbane’s MHP increased and Sydney’s MHP reduced.
We think the narrowing of the gap may already be happening. Since September 2015, Sydney’s MHP dropped by $15,000 and Brisbane has lifted by $10,000.
If you are looking to invest, please give me a call. The process starts with pre approved finance but we also have property reports that will help you make a more informed decision.