Image: 10 Timberland Place in Loganholme is currently for sale. Johnson Teo.
Brisbane has overtaken Melbourne to become the second-most expensive property market in the country, according to Domain’s house price September quarter report, and it’s having a knock-on effect in Logan.
Brisbane has become one of the “strongest growth engines” in the property market, which Domain said was driven by an increasing population, lifestyle appeal, strong local economies, investor activity, and, crucially, an undersupply of housing.
Data from the report shows neighbouring markets like Logan’s are soaring as a result, with prices skyrocketing over the past five years.
In the past year, Brown Plains, Eagleby, Mount Warren Park, and Yarrabilba have seen the largest increase in average house prices.
On average, a house in Brown Plains will cost $818,000, a 19.2% increase in the past year and a 126.6% increase in the past five years. On average, a house in Eagleby will cost $700,000, a 16.7% increase in the past year, and a 93.4% increase in the past 5 years.
Brown Plains Real Estate principal Neil Giles said he thought the average house price in Brown Plains wasn’t quite as high as Domain had reported, but that the rate prices are increasing did not surprise him.
“They’re going up month to month at the moment because there’s no supply and so much demand,” Mr Giles said.
“Brown Plains, and Logan itself, was in a bit of a hole prior to COVID because there was a government grant of $30,000 for first home buyers, which meant people were buying property in Flagstone or Yarrabilba.”
Mr Giles said the current government programs to help first home buyers hadn’t helped to ease price pressures on the housing market.
Comparatively, suburbs like Cornubia, Heritage Park, Loganholme, and Shailer Park recorded the lowest amount of growth in the past year.
House prices in Shailer Park have seen an increase of 2.6% in the last year, bringing the average house price to $1.01m.
House prices in Cornubia increased by 2.9% in the last year; the average house price in the suburb sits at $1.05m.
Raywhite estate agent Johnson Teo said areas like Shailer Park had experienced a smaller growth rate in the past year because property owners were apprehensive about selling their properties before locking in their next property.
Not because properties in suburbs like Shailer Park or Corniubia were already, on average, more expensive than suburbs experiencing price growth at a higher rate, like Brown Plains or Eagleby.
“There are a lot of buyers around, but the sellers are the ones that are not inclined to put their houses on the market because of the supply shortage,” Mr Teo said.
“There are hardly any houses in Shailer Park for sale under $1m right now.”
Overall demand for housing Australia-wide is being driven by lower interest rates, improved loan borrowing capacity, wage increases, a tight jobs market, low housing stock levels, high auction clearance rates, and the rollout of policies to help first home buyers, Domain said.
