Brisbane has overtaken Melbourne to become the second-most expensive property market in the country, according to Domain’s house price report for September, and it’s having a knock-on effect in Logan.
Brisbane has become one of the “strongest growth engines”, 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 median house prices.
The median house price in Yarrabilba will cost $730,000, a 14% increase in the past year and an 82.5% increase in the past five years.
In the neighbouring suburb of Jimboomba, the median house price is as high as $985,000, a 16.9% increase in the past year and a 64.2% in median house prices five years ago.
Logan Village’s median house price is $1.05 million, 10.6% higher than the previous year and 69.1% higher than the past five years.
Real Estate Institute Queensland Logan zone chair and LJ Hooker principal Christie Smith said she thought average house prices in Yarrabilba were much higher than these numbers, three months on from this data.
“In the last four to five months, a property that was selling in the mid to late $700,000s range four to five months ago is now selling in the early to mid $800,000s,” Ms Smith said.
“That continual growth over time, when one property sells, the next ones coming to market, are that step higher and higher.
“We’ve seen a bit of stabilisation in that price point for comparable properties in the last month or so; before that, there was a really rapid increase.”
When compared to national property markets, Logan is an area still relatively affordable for most, Ms Smith said.
“Real estate is something that will continue to grow and develop, and an area like Yarrabilba is still, even though we’ve had a massive increase, affordable,” she said.
“People will get a lot for their money, whether it be a really good family investment home where they know it’s going to have good returns, a newer home or a bigger home for the price compared to areas closer to Brisbane or the Gold Coast.”
These trends of rapid unwavering growth, Ms Smith said, are not unique to the Yarrabilba market.
“Everywhere has had a massive influx of buyer activity and a lot of interest,” she said. “And when people are selling out of one, they’re generally looking to buy into others.
“Logan is a growing area, and a lot of people are seeing a lot of opportunity to secure something with so much potential, and that’s from locals and people interstate.”
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.
