Sydneysiders are increasingly moving to Brisbane to find more affordable property and raise a family.
As house prices in Australia’s most expensive city continue to climb, families are questioning their hour-long commute to work, as well as constantly navigating through bumper-to-bumper traffic and putting up with semis or apartments, where walls are joined and neighbours are loud.
According to the Domain Group, Sydney’s median house price is now $844,000, forcing some families to look at alternative options.
Jen Wilkie believes she wouldn’t have been able to have a family in Sydney. Photo: YVONNE WU
Brisbane is high on the list with a median of $565,000.
Jen and Matt Wilkie moved from Sydney’s lower north shore to Brisbane 18 months ago, after the birth of their first son, Jack.
“We could never afford a house in Sydney, it’s just too expensive,” Jen said.
Jen and Matt Wilkie with sons Jack, Samuel and Alfred. Photo: VERVE PORTRAITS
“We wouldn’t have been able to have a family there.”
But they could in Queensland – Jen gave birth to twin boys Samuel and Alfred 15 weeks ago.
Obviously needing more space with three boys under three, they offloaded their Neutral Bay apartment this year for $795,000, then purchased a three-bedroom property “for the kids” in the trendy suburb of Milton, within a kilometre of Brisbane’s CBD, for $825,000.
Jen and Matt Wilkie bought this property in Milton for $825,000. Photo: PLACE ESTATE AGENTS
Jen said technically, it was a five-bedroom house and offered amazing value.
“The downstairs area was two millimetres short of (council) approval so they couldn’t advertise it,” she said.
“We would have to have a couple of spare million for a place like this in Sydney.”
It appears Jen and Matt are just one couple of many making the move up north, where the weather is warmer, the lifestyle is laid back, and the beaches north and south of the city are some of the best in the world.
Ray White Graceville agent Russell Gregory said Sydney buyers used to be one of 20 inquiries but were now one in five.
“It’s absolutely amazing the change in the last six months,” he said.
“Southern investors are thinking Brisbane is the next market that will have high capital gain.
“I’ve been harassed by them this morning – I’ve had five discussions and four of them were from Sydney.”
Real estate agents aren’t the only property professionals loving it. Buyers’ agents from both Sydney and Melbourne are also targeting the city.
Ben Kingsley of Empower Wealth now flies up from Melbourne every two weeks, in search of Queensland cottages and units for his clients.
He said last year, he made only one flight to Brisbane and that was for research purposes.
“Brisbane has been a lagged performer to Melbourne and Sydney, so if we look at the cycles of economical activity, Brisbane is normally a later bloomer,” he said.
“From our point of view we feel the measure of value is best served in Brisbane versus market places that have had really strong runs.”
Sydney and Melbourne buyers now represent 80 per cent of clients for Liz Wilcox of Brisbane-based Hot Property Specialists Buyers’ Agents.
That compares with 40 per cent just 12 months ago.
But she warned some interstate investors were paying far too much. A Sydney buyer recently paid $650,000 for a property in the northern suburb of Stafford Heights through a different buyers’ agent, even though it was only worth $600,000.
“They don’t know what property is worth because it’s cheap compared to Sydney,” she said.
However, for some investors, it’s a numbers game.
Brisbane houses now offer a rental yield of more than 5 per cent, which is another strong incentive to purchase, according to Real Estate Institute of Queensland chief executive officer Antonia Mercorella.
“Brisbane is the third most affordable capital city after Hobart and Adelaide, with median prices (at least) $246,000 lower than Sydney and almost $75,000 lower than Melbourne,” she said.
“Some of our key tourism centres, including Cairns and the Fraser Coast, are also on an upward spiral.”
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