Brisbane Overtakes Melbourne: What It Tells Us About the Future of Property Investing

Brisbane City

For the first time in history, Brisbane has officially overtaken Melbourne in median house prices, becoming the second most expensive capital city in Australia behind Sydney.

That shift is more than just a headline. It is a major signal for investors, particularly those watching cities like Perth. The reasons behind Brisbane’s rise offer a blueprint for what future capital growth might look like in other markets, and it tells us a lot about where the smart money is going next.

What Just Happened and Why It Matters

According to recent national housing data, Brisbane’s median house price has edged past Melbourne’s, with some suburbs experiencing record-breaking growth.

While Melbourne’s market has softened due to increasing listings, tighter investor regulation, and a large exodus of residents post-pandemic, Brisbane has been quietly climbing. Its growth has been driven by a powerful combination of factors:

• Strong interstate migration

• Limited housing supply

• Massive infrastructure investment

• High rental demand and low vacancy rates

And perhaps most importantly, buyer affordability has been better balanced in Brisbane than in Sydney and Melbourne, drawing more long-term residents and investors alike.

What It Signals for Investors Across Australia

Markets like Brisbane do not leapfrog others without a shift in fundamentals. The story here is not just about price. It is about people, infrastructure and demand.

For property investors, the lesson is clear:
Chasing legacy capital cities is not always the smartest strategy. Real growth often comes from cities with affordability, strong population inflows, infrastructure pipelines and tight supply.

Which brings us to Perth.

Could Perth Be Next?

While Perth has not yet caught up to the east coast in median price rankings, it is increasingly catching the attention of savvy investors. Why?

• Population growth is on the rise, especially with net migration into WA

• Housing supply is extremely limited, keeping competition high

• Rental vacancy rates are still sitting around 2 percent or lower

• Yields in Perth are outperforming most other capitals

• Major infrastructure projects are underway across transport, housing and precincts

In many ways, Perth today looks a lot like Brisbane did five years ago — undervalued, undersupplied and underestimated.

What Investors Should Be Doing Right Now

If you are already invested in Perth or planning your next move, now is the time to get strategic.
Instead of waiting for prices to peak, smart investors focus on timing, area selection, and yield performance.

• Look for suburbs with below-median pricing but strong demand

• Seek out areas benefiting from infrastructure improvements or rezoning

• Pay attention to rental pressure and tenant competition

• Use this time while interest rates are steady to lock in finance and expand

Brisbane’s rise is proof that affordability today can mean capital growth tomorrow.

Final Thoughts

The fact that Brisbane has overtaken Melbourne is not a short-term anomaly. It is a sign that Australia’s property landscape is shifting. Investors who pay attention to the trends behind the headlines will position themselves for better long-term results.

Perth may not be in the top two yet, but the signs are there. And if you are ready to take the next step, we are here to help.