Key takeaways
Brisbane continues to be one of Australia’s strongest capital city housing markets and is likely to remain so throughout the rest of2024, with dwelling values continuing to go from strength to strength.
Brisbane's housing market skyrocketed over the last few years with 64% price growth since the onset of COVID-19 and is currently at a new peak in price.
Like everywhere else in the country, Brisbane’s rental market is in crisis with historically low vacancy rates and skyrocketing rents.
The strong demand for detached houses in Brisbane, particularly in the inner and middle ring suburbs, and outstanding demand for lifestyle areas, are likely to lead to these locations outperforming cheaper properties in outer suburbs.
At the same time, demand for apartments is likely to remain softer, but more and more Queenslanders are turning to townhouses in Brisbane's inner suburbs as a preferred style of accommodation.
ANZ Bank forecasts a 5-7% property price rise in Brisbane in 2025.
Are you wondering what's ahead for the Brisbane property market for the rest of 2024?
Brisbane continues to be one of Australia’s strongest capital city housing markets and is likely to remain so throughout 2024, with dwelling values continuing to go from strength to strength.
Brisbane's housing market skyrocketed over the last few years with 64% price growth since the onset of COVID-19 and is currently at a new peak in price.
This remarkable growth has pushed up the city’s median home value to be higher than that of Melbourne.
Here is the latest data on the median property prices for Brisbane.
| Property | Median price | Δ MoM | Δ QoQ | Δ Annual |
|---|---|---|---|---|
| All Capital city dwellings | $881,091 | 0.9% | 2.7% | 14.5% |
| Capital city houses | $973,534 | 0.8% | 2.4% | 13.5% |
| Capital city units | $661,925 | 1.2% | 4.2% | 19.4% |
| Regional dwellings | $664,174 | 0.9% | 2.6% | 12.2% |
Source: CoreLogic, 1st October 2024
Brisbane’s property markets update
Despite more homes being listed for sale and rising prices making property less affordable, the Brisbane property market is expected to keep steaming ahead over the balance of 2024 and well into 2025.
A slowdown in construction has hampered the supply of new housing, concentrating demand on existing properties.
Both buyer and seller confidences increased in the early part of this year, with the thought that potential rate cuts could boost borrowing capacity, giving buyers more money to spend.
At Metropole Brisbane we’re finding that strategic investors and homebuyers are back actively looking to upgrade, picking the eyes out of the market.
Cheaper properties are recording stronger price growth, with prices in Brisbane's bottom quartile being 30% higher than their 2022 peak.
However, confidence will improve as interest rates fall over the next year or two, and even more buyers will return to the Brisbane property market.
However, affordability will still be an issue for many potential buyers, and buyers will only be able to pay up to the limit of what they can afford, so I would only invest in locations where wages are increasing faster than average and residents have multiple streams of income, not just wages.
This means investing in the more affluent inner-ring suburbs and the gentrifying middle-ring suburbs of Brisbane which will outperform the cheaper suburbs, where residents will still find it difficult to afford to buy a home.
The Best Performing Investment Properties in Brisbane for 2025
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.
Houses in Lifestyle and Growth Suburbs
Detached homes in established Brisbane suburbs with lifestyle appeal will 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.
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, good schools and with gentrification in full swing, these suburbs are gaining popularity among families and young professionals. They offer affordable entry points with good prospects for capital growth over the next few years.
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 own occupies are prepared to trade backyards for courtyards.
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 centers, 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.
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.
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.
What's happening in the Brisbane property market?
Source: SQM Research
Moving forward, Queensland has been tipped to have more million dollar suburbs than Victoria in 2025, according to analysis by Ray White.
Of the six states and two territories, Queensland is the fastest growing with its count of $1 million suburbs growing by 25 times over the last decade from just seven to 174.
Second in terms of growth rate is ACT with an 11 times growth in count of $1 million suburbs from just six in 2014 to 70 in 2024.
Assuming the growth rate of the last decade maintains its trend for the next 12 months, we can expect around 99 new suburbs to pass the $1 million mark.
Thirty of these will come from New South Wales, 24 from Queensland, and 18 from Victoria, which means Queensland has a very high probability of overtaking Victoria as the state with the second most count of million dollar suburbs.
Brisbane’s rental markets remain exceptionally tight
Dr. Andrew Wilson reports the Brisbane rental markets have commenced 2024 with more tough results for tenants with generally higher rents and continuing near record-low vacancy rates for both houses and units.:
- Brisbane’s vacancy rates for houses is 0.9% with rents rising 9.3% over the last year.
- Brisbane’s vacancy rates for units is 1.0% with rents rising 24.8% over the last year.
Source: SQM Research
Like everywhere else in the country, Brisbane’s rental market is in crisis.
The city has seen significant investment in recent years, and many people have moved to Brisbane to take advantage of job opportunities and high quality of life.
But a migration surge has led to an increased demand for rental properties, which has kept the vacancy rate low.
While the current vacancy rate in Brisbane may be good news for landlords, it only serves to exacerbate the city’s already pressurised rental market with renters increasingly struggling to look for affordable housing.
Source: SQM Research
2024 is unlikely to provide any relief for tenants with new home building levels remaining chronically recessed despite government policies designed to reduce surging migration.
Key trends for Brisbane’s housing market 2025.
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 in 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.
Moving forward there will be a flight to quality properties and an increased emphasis on livability.
That explains why we’re seeing robust demand for A-grade homes and investment-grade properties, particularly in lifestyle locations, with many holding their values well.
Buyers will be willing to pay a little more for properties with a little more space and security, but it won’t be just the property itself that will need to meet these newly evolved needs – a “livable” location will play a big part too.
To many, livability will mean a combination of:
- Proximity – to things like parks, shops, amenities, and good schools
- Mobility – access to good public transport (even though this may be less important moving forward) or a good road system
- Access to jobs
Another driver of strong capital growth in Brisbane is school zones.
As part of their property decision-making process, many parents and investors consider the geographical location of a potential property in relation to a school catchment zone.
When people are looking for a home, they’re looking for a lifestyle, and education is a big part of that picture.
Brisbane’s migration and population growth vs. property prices
Brisbane and Queensland can thank a huge influx of internal migrants for the robustness of their property markets – between the pandemic, lockdowns, and a surging property market many Australians, particularly from Victoria and NSW, flocked northwards to our Sunshine State in search of more affordable property in lifestyle suburbs.
And the lifestyle move is one that still holds true today, having picked up pace throughout 2023.
Popular areas of the Gold Coast and Sunshine Coast have enjoyed strong demand considering the increased flexibility of being able to work from home and commuting to the big smoke less frequently.
At the same time property investor activity has been strong, particularly for houses, not only coming from locals but from interstate investors who see a strong upside in Brisbane property prices as well as favourable rental returns.
Of course, there is not one Queensland property market, nor one south-east Queensland property market, and different locations are performing differently and are likely to continue to do so.
Queensland recorded a population growth rate of 2.6% in the 12 months to 30 June 2023, above the national average (2.4%) and third highest among all states and territories - behind Western Australia’s 3.1% increase and Victoria’s 2.7% increase over the same period, according to the latest ABS data.
What sets Queensland apart from the rest, though, is that while the volume of net overseas migration dominates figures (as it does elsewhere in other states) Queensland’s volume of net interstate migration is significantly higher and made the largest contribution to population growth in Queensland in the 12 months to June 2023.
| NSW | QLD | VIC | |
|---|---|---|---|
| Interstate arrivals | 82,008 | 107,935 | 74,188 |
| Interstate departures | 116,166 | 75,680 | 76,051 |
| Net interstate migration | -34,158 | 32,255 | -1,863 |
Source: ABS data
And there is more forecasted population growth on the horizon.
Federal government forecasts suggest that Queensland’s population is expected to grow by more than 16% by the time Brisbane hosts the Olympic Games in 2032.
And the population spread in Australia’s most decentralised state is tipped to sway towards the city, with most Queenslanders expected to live in Greater Brisbane by the time the Olympic flame is lit at the Gabba.
Greater Brisbane is expected to grow faster than the rest of Queensland, with a rate of 1.9% projected for the capital in 2022-23, compared to 1.4% for the rest of the state.
That means that Queensland’s population is set to boom in the coming decades, from the current 5.4 million people to as much as 8.27 million by 2046.
Brisbane’s fundamentals are very strong
It’s not just Brisbane’s population and migration growth that is holding up the state’s economy, the remainder of the city’s underlying fundamentals are also very strong.
Queensland made history by becoming the best-performing state economy for the first time in January 2023.
The CommSec State of the States report at the time showed that its economy grew at a faster pace than any other state in Australia, thanks to strong population growth, a solid job market, and overseas demand for energy resources, such as coal and natural gas.
It is worth noting that Queensland has the highest underemployment rate and lowest participation rate and employment-to-population ratio across the major eastern states.
And I would argue it has been this job growth that has fuelled record levels of migration because most will not be willing to make a life-changing move unless they have some form of employment on the horizon.
This is something that was sorely missing from the Sunshine State in the first half of the last decade.
Another appeal of Queensland’s property market is that property values still remain low relative to other major cities – and we know affordability is a key driver of migrants into the area.
The median dwelling price for our combined capital cities now sits at $757,746 - Brisbane’s strong growth means its prices sit at a slightly higher $787,217, but that’s still significantly below Sydney’s $1.12 million median and only just surpasses Melbourne’s $780,457 median price.
While Brisbane’s property market was significantly more affordable before the property boom, it still represents a valuable benefit to buyers who are looking to purchase at a time when interest rates are rising steeply.
And the impending 2032 Olympics, hosted by Brisbane, will only serve to put even more pressure on the city.
The need for upgraded infrastructure and transport in Brisbane, the Gold Coast, and the Sunshine Coast will likely put a rocket under Brisbane’s property market.
Why?
Because infrastructure spending is one of the most powerful forces in residential real estate – it can transform local economies and generate real estate booms.
That’s because major infrastructure projects can elevate the appeal of locations by improving the accessibility or amenity of an area and they can also generate economic activity and jobs during construction.
Brisbane’s housing market - the forecast for 2025
Bearing in mind there are multiple markets within the Brisbane property market, it seems that freestanding Brisbane houses within 5-7 km of the CBD or in good school catchment zones are likely to continue to grow strongly.
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- 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
ANZ Bank has recently updated its forecasts for the next 2 years:
Oxford Economics recently made the following forecasts of where Brisbane house prices will be in 3 years time.
As you can see, they are expecting strong performance of the Brisbane housing market for the next few years.
3-year property price forecast (by June 2027)
| City | Median price | Total price growth | ||
|---|---|---|---|---|
| Houses | Units | Houses | Units | |
| Brisbane | $1.21M | $0.71M | 19% | 23% |
| Combined capitals | $1.34M | $0.87M | 20% | 21% |
Source: Oxford Economics, PriceFinder
