Key takeaways
Detached homes in established suburbs are expected to perform well due to demand from families and professionals moving from southern states. Key factors include proximity to schools, parks, shopping centers, and transport. Properties with renovation potential or extra land are particularly valuable for capital growth.
Townhouses are becoming more popular, offering more space than apartments at a lower entry price than houses. These are particularly attractive to young families, professionals, and downsizers.
While avoiding large high-rise complexes, smaller boutique apartment buildings in well-located suburbs are expected to perform well, particularly those with features like balconies, secure parking, and access to lifestyle amenities.
Properties with renovation potential or subdivision possibilities offer opportunities for manufactured growth and rental yield increases.
Areas benefiting from infrastructure projects often experience increased demand, which can lead to higher property values and rental yields.
Brisbane's property market is gearing up for an exciting year ahead, and savvy investors have plenty of opportunities to tap into its potential.
With infrastructure projects ramping up, interstate migration fuelling demand and lifestyle trends shifting, it’s crucial to pinpoint the types of residential properties and suburbs poised for growth.
Here’s a detailed look at the best-performing investment properties in Brisbane for 2025 and the suburbs you should target.
Best performing property types
1. Houses in Lifestyle and Growth Suburbs
Detached homes in established suburbs with lifestyle appeal continue to be the top performers in Brisbane.
With a growing influx of families and professionals moving from southern states in search of more space, affordability, and a better lifestyle, houses in Brisbane’s established suburbs will maintain strong demand.
These properties offer capital growth potential and stable rental yields.
I would recommend investors buy a 3 or 4-bedroom home with land, proximity to schools, parks, shopping centres, and transport links.
Properties with renovation potential or extra land for future development can be particularly valuable and Will allow the investor to “manufacture” capital growth and rental growth.
2. Townhouses in Inner and Middle-Ring Suburbs
The shift towards medium-density living is a continuing trend in Brisbane as more people seek affordable alternatives to traditional houses without compromising on space and location.
Townhouses offer a great balance, providing more room than apartments but at a lower entry price than standalone houses.
This segment is gaining popularity among young families, professionals, and downsizers.
3 bedroom townhouses in low-density, modern developments with easy access to transport, retail hubs, and lifestyle amenities make great long-term investments.
Properties with outdoor spaces or private courtyards are highly sought after as both tenants and owner occupiers are prepared to trade backyards for courtyards.
3. Apartments in Boutique Complexes
While I would avoid high-rise apartments in large complexes, boutique “family-friendly” apartments (typically in complexes of 4 - 20 units) in well-located suburbs are expected to perform well in the next few years.
They cater to renters and owner-occupiers who want the convenience of apartment living without the congestion of larger complexes.
Investors who can’t afford a house or townhouse should consider 2 bedroom apartments with spacious layouts, quality finishes, and amenities such as balconies, secure parking, and access to nearby lifestyle facilities like cafes, restaurants, and public transport.
Suburbs to target
1. Houses
Brisbane’s Inner-City Suburbs like Paddington, Ashgrove, and Red Hill are likely to perform strongly.
These suburbs offer a blend of heritage charm, access to the CBD, and a strong café culture.
The scarcity of land, coupled with ongoing demand from professionals and families, makes them ideal for capital growth.
Also, western suburbs in Brisbane like Indooroopilly, Chapel Hill and Kenmore should outperform.
Known for their excellent schools, green spaces, and family-friendly lifestyle, these suburbs have experienced consistent demand and offer strong rental yields and capital growth potential.
The Brisbane suburbs of Stafford, Kedron, Wavell Heights, Cannon Hill, Camp Hill and Mansfield enjoy infrastructure improvements, proximity to major employment hubs, and good schools and with gentrification in full swing, these suburbs are gaining popularity among families and young professionals.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State October 15th 2024
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – October 2024
- Also read:Melbourne property market forecast for 2025
- Also read:Sydney property market forecast for 2025
- Also read:Brisbane’s property market forecast for 2025
They offer affordable entry points with good prospects for capital growth over the next few years.
2. Townhouses
Look for townhouses in South Brisbane and Greenslopes.
These inner-city areas are undergoing rapid transformation with new infrastructure and urban renewal projects, making them attractive for townhouse investments.
The demand from professionals working in the CBD and nearby hospitals ensures solid rental demand.
Also, Carina and Camp Hill are suburbs to target. Located just 7-10 km from the CBD, these suburbs are experiencing an influx of young families and professionals looking for spacious living at a more affordable price point.
Townhouses here offer good rental yields and future capital growth.
Stafford and Kedron have excellent access to public transport, shopping centres, and proximity to Brisbane Airport, these northern suburbs are emerging as townhouse hotspots.
They attract a mix of renters and owner-occupiers, providing strong rental yields and growth potential.
3. Boutique Apartments
The trendy riverside suburbs of New Farm and Teneriffe are always in high demand among young professionals and downsizers looking for lifestyle-driven apartment living.
With their proximity to the CBD, high-end dining options, and recreational facilities, boutique apartments here have strong rental demand and capital growth potential.
West End and Highgate Hill are known for their vibrant, eclectic vibe and continue to attract renters and buyers looking for a lively urban lifestyle.
Boutique apartments in these suburbs perform well due to their proximity to the CBD, cultural attractions, and entertainment options.
The northern inner-city suburbs of Albion and Wooloowin are rapidly gentrifying, with infrastructure upgrades and new developments attracting renters and owner-occupiers.
Boutique apartments in these areas provide an affordable entry point with good long-term growth prospects.
Emerging trends influencing Brisbane's property market
Brisbane’s many infrastructure projects, including the Cross River Rail, Brisbane Metro, and preparations for the 2032 Olympics, are transforming the city.
Suburbs benefiting from these developments are likely to see increased demand and continued capital growth.
At the same time, Brisbane continues to attract residents from Sydney and Melbourne due to its more affordable housing, lifestyle advantages, and employment opportunities.
This trend is driving demand for family-friendly and lifestyle-focused
Suburbs undergoing urban renewal and gentrification tend to outperform, as they attract a new demographic of more affluent residents (both owner occupiers and tenants), which in turn boosts demand for housing and rental properties.
Some other thoughts for outperforming the markets
- Target Value-Add Properties: Properties with renovation potential or those that can be subdivided offer opportunities to manufacture growth and increase rental yields.
- Stay Updated on Infrastructure Developments: Infrastructure improvements often lead to increased demand for housing in nearby areas, driving up property values and rental yields.
Brisbane's property market offers diverse opportunities for investors in 2025, but success hinges on selecting the right property type in the right location.
Family homes in lifestyle-oriented suburbs, townhouses in gentrifying areas, and boutique apartments in vibrant, well-connected neighbourhoods present the best investment prospects.
By focusing on suburbs with strong demand drivers, infrastructure improvements, and lifestyle appeal, you’ll position yourself for solid capital growth and attractive rental yields in Brisbane’s evolving property market.
