A widening mismatch between property listing prices and buyer budget expectations in Australia’s capital cities is pushing home seekers toward the outskirts of Brisbane and Melbourne, according to new data from Domain.
Domain’s latest analysis reveals that in prime inner-city areas, the gap between what buyers are willing to pay and listed prices can reach up to $1 million. In Melbourne, for example, houses within 10 kilometers of the central business district (CBD) recorded a typical buyer search price of $1.2 million—$310,000 less than the median listing price of $1.51 million.
The disparity becomes even more pronounced in affluent suburbs such as Boroondara and Stonnington-West, where the shortfall can exceed $900,000. A similar trend extends to properties located up to 20 kilometers from Melbourne’s CBD, with buyers searching for townhouses and units at price points $198,000 below market listings.
Despite continued interest in houses, buyers searching within a 10–20 kilometer radius of the Melbourne CBD still face a $22,000 shortfall on list prices. Interestingly, unit seekers in the same area are showing a willingness to pay $10,000 above asking prices, signalling strong demand for higher-density options.
Domain’s Chief of Research and Economics, Dr Nicola Powell, attributed the shift in buyer behaviour to ongoing affordability concerns and the pursuit of well-located, medium and high-density housing.
“We’re seeing sustained demand for well-located, medium and high density housing like townhouses, apartments, and mixed-use developments within 20 kilometres of the CBD, as well as increased interest in outer suburb areas and growth corridors,” Powell said.
Brisbane’s market is reflecting a similar trend. In some of its inner-city areas, the gap between buyer expectations and list prices has reached $350,000 and climbs to $800,000 in suburbs such as Brisbane Inner. Suburbs like Sherwood-Indooroopilly are now seeing prices that exceed buyer budgets by $500,000, suggesting that even traditionally ‘aspirational-but-attainable’ areas are slipping out of reach.
Domain reported a significant behavioural shift among Brisbane buyers, with searches for properties more than 20 kilometers from the CBD increasing by 37.5% since 2020, while searches within the 20-kilometer radius dropped by 13.4%.
Interestingly, properties located more than 30 kilometers from Brisbane’s inner city are now experiencing buyer demand that outpaces listing prices, with houses exceeding list prices by up to $8,000. The trend is even stronger for townhouses and units, where buyer budgets outstrip asking prices by up to $100,000 and $301,000, respectively.
According to Powell, this reflects a broader shortage of large, high-quality homes in the city and changing purchasing dynamics driven by affordability pressures.
“Brisbane’s rapid property price growth is forcing many buyers to make tough trade-offs, either compromising on location or adjusting their expectations around property type,” she noted.
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