Brisbane’s Prestige Boom is Telling us Something Bigger

May 23

I inspected 1 Sutherland Avenue, Ascot for a locally based client, this month.

Brisbane isn’t slowing down. It’s evolving.

Despite this month’s Federal Budget bombshell, the Brisbane property market continues to hold steady. In the light of softening conditions brought about by a combination of recent global events and local announcements, the sentiment amongst many of my clients is this. Lets move forward anyway. This is a time for strategic buyers who don’t waver despite scary headlines and instead, see opportunity in securing a slice of pre-olympic real estate.

I was recently featured in a Domain article discussing Brisbane’s prestige property boom, and the reality is this: what we’re seeing in Brisbane right now is not hype — it’s a structural shift.

The prestige market is moving because Brisbane itself has changed.

Property purchased in Newmarket by Wendy Russell Brisbane Buyers Agent — My clients settle on their new home in Newmarket next week — secured under-budget at Auction in late February this year.

Brisbane is no longer the sleepy cousin to Sydney, Melbourne.

Interstate migration remains strong. Infrastructure investment continues to reshape the city. The Olympics have accelerated global attention. And for affluent buyers coming from Sydney, Melbourne and even abroad, Brisbane still represents relative value — even at price points locals once thought impossible.

What’s interesting, however, is that this momentum is happening at the exact same time the Federal Budget has introduced some of the biggest conversations around property investment we’ve seen in years.

The proposed changes to negative gearing and capital gains tax have created uncertainty across the market, particularly for investors purchasing established property.

Buyers are pausing, reassessing and trying to determine what the future landscape looks like. Economists are divided on how significant the impact will be, but most agree the reforms are designed to slow investor demand and redirect capital towards new housing supply.

But here’s what many people are missing:

Brisbane is not one market.

The prestige market operates differently to the broader housing market. High-net-worth buyers are not making decisions based purely on tax deductions. They are buying lifestyle, scarcity, land position, school catchments, river frontage, long-term growth and strategic relocation opportunities.

That segment of the market is still incredibly resilient.

I know this firsthand because of the two high net-worth clients I am shopping for, neither have changed tact on their purchase decision.

The immediate challenge I am presented with, is supply.

Even after the Budget announcement, Brisbane auction activity in the upper end remained strong, with multimillion-dollar sales continuing across the city.

Ray White’s recent auction event at the Calile Hotel is a telling insight into what is really happening on the ground for property in Brisbane.

Auction event at the Calile Hotel, Brisbane — Ray White’s recent auction event at the Calile Hotel, Fortitude Valley. *(Image source:* *realestate.com.au*.)

As always, supply remains one of Brisbane’s biggest issues.

We simply are not building enough housing to keep up with demand.

And in the luxury market, homeowners are holding because supply is tight.

That upsize that was on the cards simply cannot happen because the property that ticks all the right boxes either doesn’t exist, cannot be built in the desired timeframe, or is being held for the next generation.

Where have all the investors gone?

While policy changes may temporarily soften investor sentiment, they do not suddenly solve undersupply. And in my opinion, that’s the bigger long-term story here.

The investors who will continue to do well are the ones who adapt early.

The market is becoming more sophisticated. Blindly buying “any property” is no longer enough, nor would I recommend it. Strategy matters more now than ever, as I highlight in my recent podcast episode, What to Buy in a Soft Market.

Wendy Russell Room818 Podcast — My recently launched podcast, Room818.
*(Episodes dropping weekly on Spotify or Apple podcasts)*

We’re already seeing a shift toward:

higher quality assets
scarce blue-chip locations
owner-occupier appeal
boutique townhome developments
and properties with genuine long-term land value

Brisbane’s growth story is still intact, but the easy money phase is maturing.

This next phase will reward buyers who understand positioning, policy and long-term market growth drivers.

And despite all the headlines, confidence in Brisbane remains incredibly strong.

I have personally witnessed the city fundamentally change over the past five years, and this is evident amongst buyer circles who have maintained confidence in the market.

Prices have risen sharply, but so has Brisbane’s economic relevance, infrastructure pipeline and national appeal.

The people who build wealth in markets like this are rarely the people waiting for certainty.

They’re the people who understand how to move before consensus catches up.

SUBSCRIBE TO BRISBANE INSIDERS >

*All Statistics and median house prices quoted are from Corelogic / Cotality and yourinvestmentpropertymag.com