Brisbane Property Market – Update

As the capital city of Queensland, Brisbane continues to draw attention from property buyers and investors alike. With its vibrant lifestyle, proximity to beautiful beaches, and a growing economy, Brisbane’s property market has become a focal point for those seeking value and growth potential. This article explores the current state of the Brisbane real estate market, examines future forecasts, and offers insights for potential buyers and investors.

The Recent Change Brisbane Property Prices

In recent months, Brisbane property prices have experienced a dynamic shift, reflecting broader national real estate trends. As of December 2024, Brisbane’s median house price of $977,575 and median unit price of $680,893 has shown resilience amidst fluctuating market conditions.

According to CoreLogic data, the price growth in Brisbane has outpaced several other major cities, including Sydney, Melbourne and Canberra. This price stability has been attributed to a combination of factors, including steady population growth and a strong demand from both local and interstate house hunters. However, the market has seen slower price increase over the past 12 months compared to 2023.

Source: Core Logic

Trends Emerging in the Brisbane Housing Market

The River City’s real estate market is likely to witness several emerging trends in the coming year. One notable trend is the increased demand for properties in suburbs that offer a balanced lifestyle, combining both urban convenience and suburban tranquillity. The shift towards remote work has also altered buyer preferences, with more individuals seeking homes that afford more space and access to green areas.

Additionally, there is a notable increase in the development of residential projects south of the Brisbane CBD, driven by the area’s affordability and proximity amenities. More Queenslanders are gravitating towards townhouses and apartment in Brisbane’s inner suburbs, indicating a shift in housing preferences. This has created opportunities for both first home buyers and seasoned investors looking for capital growth potential.

Brisbane Suburbs Compared to the CBD

Across Brisbane, suburbs are showing varied performances compared to the Brisbane CBD. While the CBD remains a hub for commercial activities and attracts a steady stream of professionals and students, several Brisbane suburbs are gaining traction due to their enhanced livability and affordability. Suburbs like Coorparoo, Camp Hill, Holland Park and Mansfield are experiencing robust growth rates, driven by their community vibe and access to good schools. Meanwhile, the outer suburbs are seeing an influx of house purchasers looking for larger properties at more competitive price points, indicating a diversification in the River City’s property landscape.

Migration and Population Growth and Impact on the Market

Migration and population growth are pivotal to the trajectory of property in Brisbane. As more people move to Queensland, driven by its lifestyle and economic opportunities, demand for housing in Brisbane is set to rise. This influx is likely to bolster the market, pushing property prices upward while concurrently increasing rental market activity. The challenge will be ensuring that housing supply keeps pace with this growing demand, a factor that will require strategic planning from both government and developers to avoid exacerbating affordability issues.

Affordability Affect Property Buyers in Brisbane

Affordability remains a significant challenge for property buyers in Brisbane. While the city is generally more affordable than Sydney, rising property prices have started to strain the budgets of many potential purchasers. This has been especially true for first-time buyers who face stiff competition and the need for substantial deposits. The affordability issue is further compounded by the relatively slower wage growth compared to the increase real estate value, necessitating strategic financial planning and potentially longer saving periods for prospective homeowners.

The Role Interest Rates Play in the Brisbane Property Landscape

Interest rates are a critical factor influencing the housing market. Lower borrowing rates have historically spurred increased borrowing capacity, enabling more property hunters to enter the market and, in turn, drive up property prices. The prospect of interest rate cuts in 2025 is expected to stimulate prospective homeowner activity and increase affordability in the housing market. SQM Researc’s base case scenario predicts a cut of 0.25 to 0.50 percent over mid-2025.

Lower lending rates are a clear indicator that price falls are unlikely on the horizon. A drop in rates could lower financial barriers for first-time buyers and property investors, making the Brisbane real estate market more accessible. Forecasts suggest that home prices could rise by 9 to 14 percent in 2025 or even more as discussed earlier, potentially increasing the median dwelling price by $77,000 to $138,000

How Can Buyers Navigate the Competitive Brisbane Market

Navigating the competitive Brisbane market requires a strategic approach. Buyers can benefit from staying informed about market trends and emerging suburbs that offer promising growth prospects. Engaging with experienced real estate professionals and leveraging tools like property market analyses can provide valuable insights that aid in making informed decisions. Additionally, house hunters should consider pre-approval for loans to enhance their bargaining power, and remain flexible in their property preferences to capitalise on available opportunities.

The Prospects for Capital Growth and Rental Yields

The prospects for long-term growth and rental yields in Brisbane remain positive, making property investment an attractive option. With steady population surge and a burgeoning rental market, investors can anticipate healthy rental yields, particularly in well-positioned suburbs. Moreover, the forecast for continued price growth supports the potential for capital appreciation over the medium to long term. This combination of factors makes Brisbane a compelling choice for investors seeking a balanced risk-return profile. Brisbane’s rental sector is facing historically low vacancy rates, around 1.2%, leading to significant rent increases. This trend is expected to continue into 2025, creating challenges for tenants but opportunities for investors. Despite potential rate cuts, affordability will likely to remain a key issue. Purchasers will still be limited by what they can afford, which may drive demand in areas where wages are increasing faster than average.

Source: SQM-Research

Which Brisbane Suburbs Offer the Best Investment Opportunities

Investors seeking lucrative opportunities in Brisbane should focus on suburbs with strong growth potential and high rental demand. Nundah and Chermside in the northern suburbs, with their proximity to Brisbane Airport, and Mount Gravatt and Salisbury in the south are attracting interest due to their strategic locations, access to key amenities, and ongoing development projects. These suburbs offer a balance between affordability and long-term capital growth, providing both immediate rental income and future appreciation potential.

The Brisbane Market Compare to Sydney

When compared to Sydney, the Brisbane market offers distinct advantages. Primarily, it presents a more accessible entry point for buyers and investors due to generally lower median prices and a more forgiving affordability landscape. While New South Wales’ Capital is known for their rapid price escalations and high cost of living, Brisbane provides a more balanced environment for growth, appealing to those looking for sustainable investment properties without the pressure of exorbitant market conditions.

The Rental Market in Brisbane Shaping Up

The rental market in Brisbane is shaping up to be a robust component of the city’s overall property landscape. With a steady influx of new residents, rental demand is on the rise, leading to competitive rental yields that attract property investors. The vacancy rate remains extremely low at around 1per cent, creating intense competition among renters. The increase in the rental sector is also influenced by the lifestyle appeal of Brisbane, with its combination of urban convenience and leisure opportunities. The rental market crisis is unlikely to ease in the near future, as new home building levels remain low despite government efforts to address the issue. As such, investors can expect sustained demand in the rental sector, particularly in areas close to employment hubs and educational institutions.

Current Rental Yields in Brisbane

Based on the most recent data, rental yields in Brisbane vary across different suburbs and property types between 3.1 and 5.2 per cent. The city’s rental yields have remained stable, supported by strong demand from both local and international tenants. Suburbs with high rental demand are offering yields that appeal to investors seeking income-generating properties, with some areas achieving yields above the national average. This stability in rental income provides an additional layer of security for investors looking to enhance their property portfolios.

Source: SQM-Research

The Rental Market Influence Property Prices

The influence of the rental sector on real estate prices in Brisbane is significant. A strong rental market often correlates with increased property values, as investors seek to capitalise on rental income potential. This demand pushes up real estate prices, particularly in suburbs with high rental yields and low vacancy rates. Conversely, any shifts in the rental market, such as increased vacancy rates or decreased rental demand, can impact market prices negatively, highlighting the interconnected nature of these market sectors and the importance of strategic investment decisions.

As Brisbane continues to draw attention on the national stage, the property market here is shaping up to be one of the most dynamic in the country. Whether you’re an investor, first home buyer, or simply curious, these four key facts about Brisbane’s property market offer invaluable insights into what’s driving demand, prices, and opportunities in 2025.

4 Facts – Everything You Need to Know

1. Listings Are Still 40% Below Pre-Pandemic Levels

The Brisbane property landscape remains tight, with listings still sitting about 40% lower than before the pandemic. This dramatic reduction in available homes has had a significant impact on real estate prices, as the classic principle of supply and demand continues to play out.

Why are listings so low? Many property owners are holding onto their assets, anticipating further price growth as Brisbane’s infrastructure boom approaches the 2032 Olympic Games. Additionally, higher interest rates over the past year discouraged some homeowners from selling, as they chose to sit tight rather than risk unfavourable market conditions.

For buyers, this limited supply means increased competition for properties. Bidding wars have become common at auctions, and buyers are paying premiums just to secure a home in desirable suburbs. If you’re planning to enter the market, it’s critical to work with a professional who understands the nuances of Queensland’s capital market dynamics.

2. Brisbane’s Infrastructure Projects Are a Magnet for Investors

Brisbane is undergoing a massive transformation, thanks to an ambitious schedule of infrastructure projects leading up to the 2032 Olympics. Projects such as Cross River Rail, the Brisbane Metro, and new Olympic venues are not only reshaping the city’s landscape but also boosting its economic appeal.
These developments are a magnet for investors, both interstate and overseas, who see Brisbane as a city on the rise. Interstate migration is also fuelling demand, with more people leaving Sydney and Melbourne to capitalise on Brisbane’s more affordable housing market and lifestyle perks. The Sunshine State remains a top choice for retirees, professionals and families, seeking better value for money and a slower pace of life.
Suburbs within close proximity to major infrastructure projects, such as Woolloongabba, Bowen Hills, and Dutton Park, are particularly popular. Home buyers and those looking to invest are betting that these areas will experience significant price appreciation as transport links improve and new amenities emerge.

3. High Construction Costs and Labour Shortages Are Squeezing Supply

Housing supply in Brisbane is facing a perfect storm of challenges. High construction costs, labour shortages, and sluggish planning approval processes are all limiting the number of new homes being built. Construction costs have surged due to inflation, supply chain disruptions, and global material shortages. Labour shortages in the building industry further compound the problem, leading to delays and increased costs for developers.

Additionally, local councils’ slow planning and approval processes mean new housing projects are taking longer to get off the ground.
The result? A constrained supply pipeline that’s unlikely to meet demand anytime soon.

This is great news for property owners, as reduced supply is likely to keep prices elevated. However, it’s a challenge for buyers, who must navigate a competitive and often frustrating market. For those considering purchasing off-the-plan properties, it’s more important than ever to thoroughly vet developers and project timelines to avoid potential pitfalls.

4. Interest Rate Cuts Are Just Around the Corner

One of the most eagerly anticipated changes in the real estate market is the potential for interest rate cuts. Economists and market analysts predict that the Reserve Bank of Australia (RBA) may lower rates within the next four weeks or, if we’re lucky, by May 2025. This would mark a significant shift from the series of rate hikes that dominated the market over the past year.

So, what does this mean for Brisbane?

An interest rate cut would likely inject fresh energy into the market, making borrowing more affordable and reigniting buyer confidence. Historically, lower lending rates have led to increased property market activity as more home hunters and investors seize the opportunity to finance purchases at lower costs.

For those already considering a property purchase, this window before the first rate cut could be a golden opportunity. Prices are already climbing, and an influx of new buyers could push them even higher once rates drop. Acting sooner rather than later may give you a competitive edge and save you from paying a premium in an even hotter market.

Here’s where it gets interesting: You don’t need to be a property expert to predict where Brisbane property prices are heading. With low listing volumes, persistent supply issues, steadily increasing demand, and potential interest rate cuts on the horizon, prices are expected to keep climbing in the near term.

The Takeaway: What This Means for Buyers and Investors

The Brisbane property market is expected to keep thriving, with several key factors shaping its future direction. Here’s how you can capitalise on the opportunities ahead:

Act Now: With listings still scarce and demand high, waiting for prices to drop is a gamble you’re unlikely to win. Enter the market sooner rather than later to avoid being priced out.

Target Growth Areas: Focus on suburbs set to benefit from infrastructure upgrades. These locations are likely to experience the strongest price growth over the coming years.

Be Prepared for Competition: Limited supply and strong demand mean you’ll need to act decisively and potentially pay a premium to secure a property. Engage a Buyers Agent to give you an edge in this competitive market.

Watch Interest Rate Movements: Keep a close eye on RBA announcements, as an interest rate cut could shift market conditions rapidly. If you’re financing a purchase, now is the time to get pre-approval and be ready to act.

Brisbane’s property market is not just surviving—it’s thriving. By staying informed and proactive, you can navigate this dynamic market with confidence and secure a property that meets your needs and goals. With the 2032 Olympics on the horizon and a host of transformative projects underway, Brisbane’s future looks brighter than ever. Don’t miss your chance to be part of it.