Capital growth in recent years has been exceptional in Sydney, strong in Melbourne but more restrained in other markets.
The price differential between Sydney and Melbourne and other markets, has become more pronounced. Sydney house prices are now around 45% higher than Melbourne and more than twice Brisbane and Perth’s median.
Where price differentials have reached these levels in the past, there has been an accelerated movement of residents away from Sydney. This has typically benefitted Brisbane more than any other market.
More recently, a strong economy and jobs market has supported record high population growth in Victoria. This may be turning, however. Queensland has been experiencing improved net interstate migration over the past 12-months, with the year to June 2017 recording the strongest net interstate migration move to the state since 2008.
2018 may well see this turnaround continue, providing underlying support to the Brisbane market.