The Melbourne Premium: April 2012 Update
The most recent data has Brisbane presenting as outstanding relative value to our southern friends Sydney and Melbourne. In particular Melbourne is close to historic highs compared to Brisbane, this suggests that the gap is unlikely to remain this wide and we might expect a considerable amount of catch up in Brisbane prices.
Forward 5 years returns (green line) tells a story. Why would you stretch to live in Melbourne when you could sell your Melbourne home and move to Brisbane and buy a superior property in a superior location for less money? Many people answer this question as ‘I wouldn’t’ which is why Brisbane tends to do very well when Melbourne housing is expensive.