Brett Warren , National Director – Metropole Group
Brisbane continues to show resilience and interesting dynamics, particularly in the unit sector.
Brisbane’s property market continues its upward trajectory, posting solid gains in May and demonstrating consistent growth throughout the first five months of 2025.
- Monthly Growth (May 2025): Dwelling values rose a further 0.6%.
- Year-to-Date Growth (first 5 months 2025): The market is up 2.3%, translating to an approximate increase of $20,300 in value.
- Annual Growth (past 12 months): A healthy 7.1% increase.
- Long-Term Performance: The average annual growth over the past decade stands at a robust 6.7%.
This consistent performance is particularly noteworthy given the broader economic landscape. The recent interest rate cuts and the expectation of further reductions are undoubtedly fuelling buyer confidence across the nation, and Brisbane is certainly feeling this positive influence.
Brisbane housing market trends
| Metric | Value |
|---|---|
| Three Months | +1.6% |
| Twelve Months | +7.1% |
| Avg. Annual Growth (Past Decade) | +6.7% |
| Median Dwelling Value | $917,992 |
| Median House Value | $1,000,422 |
| Median Unit Value | $709,823 |
Source: Cotality Australia
It’s official – Brisbane’s median house value has cracked the $1 million mark! This milestone underscores the sustained demand and value appreciation in the detached housing sector.
One of the standout trends in the Brisbane market is the exceptional performance of units.
- Unit Value Growth (past 12 months): A striking +11.8%.
- House Value Growth (past 12 months): A still respectable, but comparatively lower, +6.2%.
This stronger growth in the unit sector likely reflects a combination of factors:
- Growing Affordability Constraints: As house prices climb, more buyers are turning to the more affordable unit market.
- Low Supply Levels: Limited new unit stock coming to market can also push prices upwards.
The rental market in Brisbane, while still tight, is showing signs of easing growth compared to previous highs.
- Annual Rental Growth (past 12 months): Has eased to 3.5% for houses and 4.5% for units. This is a significant moderation from the 11.2% annual change seen three years ago.
- Vacancy Rate: Remains very low at 0.9% (as of May 2025).
Brisbane rental rates & yields:
| Metric | Houses | Units |
|---|---|---|
| Weekly Rent | $650 | $620 |
| Gross Rental Yield | 3.5% | 4.5% |
| Annual Change in Rent | +3.2% | +4.5% |
Source: Cotality Australia
The slowdown in rental growth, despite persistently tight vacancy rates, is likely due to:
- Normalising Net Overseas Migration: After a period of “catch-up” migration post-COVID, a slowdown here reduces immediate rental demand.
- Affordability Constraints: Renters are reaching the limit of what they can afford.
While values are up, the actual number of sales has seen a minor dip over the past year.
- Annual Change in Sales Volume: -0.3%
This slight decrease suggests that while demand is strong enough to push prices up, the overall transaction volume is relatively stable.
Brisbane house prices – the longer-term data
Brisbane doesn’t exist in a vacuum, and several national trends are shaping its market:
- Lending Policies: Prudent lending practices are expected to continue, keeping a lid on excessive market exuberance. Participants should remain mindful of evolving economic conditions and policy developments.
- Interest Rates: Expected to fall further, boosting buyer sentiment and activity.
- Inflation: The RBA is becoming more comfortable with the path of inflation, potentially paving the way for those rate cuts.
- First Home Buyers: Renewed political certainty and government initiatives (like the expanded 5% deposit guarantee, though not live until next year) could see more first home buyers entering the market.
- Affordability: This remains a key challenge nationwide, potentially tempering a more aggressive upswing in values.
The outlook for Brisbane’s property market appears positive, albeit with growth likely to be more modest than the rapid upswings seen in previous years. Key drivers include:
- Continued buyer confidence fuelled by anticipated interest rate cuts.
- The relative affordability of units compared to houses, likely sustaining demand in this sector.
- Ongoing undersupply of newly built homes.
However, affordability pressures and cautious lending will likely act as natural brakes on runaway price growth.
