Canberra overtaken as second-most expensive housing market

Brisbane property values rose 1.4 per cent, overtaking the nation's capital with a new median value of $843,231.

Canberra's home value median now sits just behind it at $840,100.

The latest figures were released in CoreLogic's monthly home value index.

Canberra house values, however, remain the second highest across the capitals at $961,403 after 0.5 per cent growth in May.

Unit values are where Brisbane found its momentum.

Canberra unit values, which includes apartments and townhouses, rose 0.5 per cent to a median of $583,587.

Meanwhile Brisbane's unit values soared 1.9 per cent to a median of $615,429 in May.

It's the first time since 1997 the Queensland capital has held the second spot for home prices.

Since the onset of COVID-19, Brisbane values have risen nearly 60 per cent, while ACT home values are up about 32 per cent, CoreLogic data shows.

Across the country, home values rose 0.8 per cent in May, the highest monthly increase since October 2023.

Extremely low levels of homes available for sale across some markets were driving the national figures, CoreLogic research director Tim Lawless said.

"Inventory levels in these markets remain well below average despite vendor activity lifting relative to this time last year," he said.

"Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices."

Canberra's gross rental yields across all dwelling types was 4.1 per cent in May, above the national figure of 3.8 per cent.

Mr Lawless said higher yields would be welcome for investors, who are facing average interest rates of 6.7 per cent.

"Given the high cost of debt, a large portion of leveraged investors are probably recording a cash flow loss despite the substantial rise in rental income," he said.