Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Brisbane's property market is included in our pack
Brisbane's rental market is delivering some of the strongest yields in Australia as of September 2025.
With average gross rental yields sitting around 3.7% city-wide, Brisbane significantly outperforms Sydney and Melbourne, where yields often fall below 3%. The combination of steady population growth, tight vacancy rates around 1%, and relatively affordable property prices compared to other capitals creates a compelling investment environment for both local and interstate buyers.
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Brisbane rental yields range from 3.7% to 7.2% depending on property type and location, with units generally outperforming houses.
Inner-city suburbs like Spring Hill and Fortitude Valley deliver the highest yields, while vacancy rates remain exceptionally tight at around 1%.
| Property Type | Average Yield Range | Median Price | Typical Weekly Rent |
|---|---|---|---|
| Houses | 4.2% - 5.2% | $1,010,000 - $1,020,000 | $690 - $780 |
| Units/Apartments | 4.5% - 5.6% | $727,000 - $780,000 | $400 - $600 |
| Townhouses | 4.0% - 5.0% | $850,000 - $950,000 | $550 - $650 |
| 1-Bedroom Apartment | 5.5% - 7.0% | $450,000 - $550,000 | $400 - $500 |
| 3-Bedroom House | 3.8% - 5.5% | $950,000 - $1,200,000 | $650 - $750 |
| Top Yielding Suburbs | 6.0% - 7.2% | $400,000 - $700,000 | $450 - $650 |
What's the current average rental yield in Brisbane right now?
Brisbane's average gross rental yield sits at 3.7% as of September 2025, making it one of Australia's most attractive capital cities for rental returns.
This figure represents a significant advantage over Sydney, where yields typically fall below 3%, and Melbourne, which averages around 3.2% for houses. The Brisbane rental market benefits from strong interstate migration, particularly young professionals and students moving from more expensive southern capitals.
Vacancy rates remain exceptionally tight at around 1.0%, well below the national average of 1.3%. This supply constraint, combined with continued population growth driven by the upcoming 2032 Olympics infrastructure development, keeps rental demand robust across most property segments.
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How do rental yields break down between houses, apartments, and townhouses?
| Property Type | Yield Range | Average Weekly Rent | Median Purchase Price |
|---|---|---|---|
| Houses | 4.2% - 5.2% | $690 - $780 | $1,010,000 - $1,020,000 |
| Units/Apartments | 4.5% - 5.6% | $400 - $600 | $727,000 - $780,000 |
| Townhouses | 4.0% - 5.0% | $550 - $650 | $850,000 - $950,000 |
| 1-Bedroom Apartments | 5.5% - 7.0% | $400 - $500 | $450,000 - $550,000 |
| 2-Bedroom Units | 4.8% - 5.8% | $550 - $650 | $600,000 - $700,000 |
| 3-Bedroom Houses | 3.8% - 5.5% | $650 - $750 | $950,000 - $1,200,000 |
| Luxury Properties ($1.5M+) | 2.5% - 3.5% | $800 - $1,200 | $1,500,000+ |
Which suburbs in Brisbane have the strongest rental yields at the moment?
Spring Hill leads Brisbane's rental yield performance with returns up to 7.2%, driven by its proximity to the CBD and high demand from young professionals.
The top-performing suburbs for rental yields include Spring Hill (7.2%), Goodna (6.0%), Fortitude Valley (5.8%), Brisbane City (6.5%), and Newstead (6.4%). These areas combine affordability with strong rental demand, particularly from the growing population of interstate migrants and international students.
Logan Central, Caboolture, and Upper Mount Gravatt also deliver strong yields of 5.5-5.9%, offering opportunities in Brisbane's middle and outer rings. Russell Island provides unique value at 5.4% for investors willing to consider island properties with ferry access.
Outer suburbs like Laidley, Macleay Island, and Kilcoy achieve yields between 4.8-5.3%, though these require careful consideration of rental demand sustainability and property management logistics.
How do yields vary depending on the size or surface area of the property?
Smaller properties consistently deliver higher gross rental yields in Brisbane, with one-bedroom apartments achieving 6-7% in prime locations.
The yield advantage of smaller properties stems from their lower purchase prices relative to rental income potential. A one-bedroom apartment in Spring Hill might cost $450,000 and rent for $420 per week, delivering a 4.8% gross yield, while a three-bedroom house in the same area costs $900,000 and rents for $650 weekly, yielding only 3.7%.
Studio apartments in inner-city locations can achieve yields above 7%, though these properties may face higher vacancy risk and stricter council regulations. Two-bedroom units typically offer the best balance of yield and tenant stability, achieving 4.8-5.8% across most Brisbane suburbs.
Large family homes and luxury properties above $1.5 million generally deliver lower yields of 2.5-3.5%, as their value often reflects owner-occupier appeal rather than rental return potential.
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What's the average purchase price of properties in Brisbane, including fees and taxes, and how does that impact yields?
Brisbane's median house price sits at $1,010,000-$1,020,000 as of September 2025, while units average $727,000-$780,000.
Additional costs significantly impact your total investment. Stamp duty, legal fees, building inspections, and other transaction costs typically add $25,000-$35,000 for a $750,000 property, rising to $45,000-$60,000 for properties above $1 million. These upfront costs effectively reduce your initial yield by 0.3-0.5%.
Brisbane City Council rates average $2,500-$4,000 annually, while building insurance costs $1,500-$2,500 depending on property type and location. Water charges typically add another $1,200-$1,800 per year for investment properties.
When calculating true yields, factor in these ongoing costs plus potential land tax obligations for investors holding multiple properties or interstate buyers, which can reduce gross yields by 1.5-2.0% annually.
How do ongoing costs like maintenance, rates, insurance, and property management affect net yields?
Ongoing property expenses typically reduce Brisbane gross yields by 1.5-2.5%, bringing net yields to around 4.0% on average.
The major ongoing costs include:
- Property management fees: 7-10% of rental income ($38-$55 weekly for a $550/week rental)
- Council rates and water charges: $4,500 annually on average
- Building insurance: $1,500-$2,500 per year depending on property value and location
- Maintenance and repairs: $1,000-$2,000 annually for well-maintained properties
- Landlord insurance: $300-$800 annually for additional protection
Older properties or those in flood-prone areas face higher insurance and maintenance costs. Units in complexes with lifts, pools, or extensive common areas may have body corporate fees of $2,000-$8,000 annually, significantly impacting net returns.
Professional property management becomes essential for interstate investors, though self-management can save 7-10% of rental income for local owners willing to handle tenant relations and maintenance coordination.
What difference does it make if the property is financed with a mortgage versus bought outright?
Mortgage financing at current Brisbane rates of 6.0-6.5% significantly impacts cash-on-cash returns, though leverage can amplify gains in rising markets.
With an 80% loan-to-value ratio, investors pay interest of approximately $48,000-$52,000 annually on a $800,000 loan. This interest often exceeds gross rental income, creating negative cashflow before tax benefits. However, leveraged investors only commit $200,000 cash plus costs, potentially achieving higher returns on their actual investment.
Cash buyers capture the full net yield of around 4.0% without interest obligations, providing immediate positive cashflow and immunity from rate rises. This approach suits retirees or conservative investors prioritizing income stability over growth.
Tax implications favor leveraged investors through negative gearing benefits, where property losses offset other income. The depreciation allowance on building and fixtures provides additional tax deductions unavailable to cash buyers.
It's something we develop in our Australia property pack.
What are the typical rental incomes for different types of properties, say a one-bedroom apartment versus a three-bedroom house?
| Property Type | Weekly Rent Range | Monthly Income | Annual Income |
|---|---|---|---|
| Studio Apartment | $350 - $450 | $1,517 - $1,950 | $18,200 - $23,400 |
| 1-Bedroom Apartment | $400 - $600 | $1,733 - $2,600 | $20,800 - $31,200 |
| 2-Bedroom Unit | $550 - $750 | $2,383 - $3,250 | $28,600 - $39,000 |
| 2-Bedroom Townhouse | $580 - $720 | $2,513 - $3,120 | $30,160 - $37,440 |
| 3-Bedroom House | $650 - $850 | $2,817 - $3,683 | $33,800 - $44,200 |
| 4-Bedroom House | $750 - $1,000 | $3,250 - $4,333 | $39,000 - $52,000 |
| Luxury Properties | $1,000 - $2,000 | $4,333 - $8,667 | $52,000 - $104,000 |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do vacancy rates differ across property types and neighborhoods in Brisbane?
Brisbane's overall vacancy rate of 1.0% represents one of Australia's tightest rental markets, with minimal variation between property types.
Inner-city units maintain slightly higher vacancy rates at 1.2%, primarily due to the concentration of student housing and short-term rental conversions in areas like Fortitude Valley and South Brisbane. These areas see seasonal fluctuations around university semester changes.
Family homes in middle and outer suburbs consistently achieve vacancy rates below 1.0%, with areas like Oxley (1.14%), Wynnum (1.24%), and Upper Mount Gravatt (1.6%) showing the highest rates due to specific local factors like transport access or school zones.
Premium properties above $1,500 weekly rent experience higher vacancy rates of 2-3%, as the tenant pool narrows significantly. Conversely, affordable properties under $500 weekly face virtually no vacancy periods due to overwhelming demand from cost-pressured renters.
What are the main renter profiles in Brisbane right now, and how do they influence demand?
Young professionals aged 25-35 dominate Brisbane's rental market, driving strong demand for one and two-bedroom properties in inner suburbs.
The primary renter demographics include:
- Interstate migrants relocating for work opportunities, particularly from Sydney and Melbourne
- University students attending Queensland University of Technology, University of Queensland, and Griffith University
- International students contributing to demand in specific corridors near universities
- Young families unable to purchase due to affordability constraints, seeking three-bedroom houses
- Downsizing retirees preferring low-maintenance apartments with lifestyle amenities
The influx of interstate migrants accelerated post-COVID, with many remote workers choosing Brisbane for lifestyle and affordability. This demographic typically earns higher incomes and can afford premium rents, driving up market rates across all property types.
Short-term rental demand shows 75% domestic travelers, with Generation Z and Alpha using platforms like Airbnb for unique accommodation experiences, creating opportunities for investors in well-located properties.
What are the pros and cons of renting short-term versus long-term in Brisbane today?
Short-term rental strategies can deliver 20-40% higher income than long-term leases but require significantly more management effort and higher operating costs.
Short-term rental advantages:
- Premium pricing during major events like Brisbane Festival, State of Origin, and business conferences
- Flexibility to use property personally or adjust pricing based on demand
- Higher total annual returns in well-located properties near attractions or CBD
- Ability to refresh and upgrade property regularly
- Tax benefits through furnishing and equipment depreciation
Short-term rental disadvantages:
- Higher vacancy periods during off-peak seasons and economic downturns
- Significant time investment in guest communication, cleaning coordination, and maintenance
- Additional costs for furnishing, utilities, cleaning, and platform commissions
- Council regulations and body corporate restrictions limiting operations
- Greater wear and tear requiring more frequent maintenance and replacement
Long-term rentals provide stability and passive income with minimal management, particularly suitable for interstate investors or those seeking consistent cashflow without operational complexity.
How have rents and yields changed compared with five years ago and one year ago, and what's the forecast for one, five, and ten years ahead compared to other big cities like Sydney or Melbourne?
Brisbane rental yields have improved significantly over the past five years, rising from around 4.0% in 2020 to current levels of 3.7-4.5% as rent growth outpaced property price increases.
Five years ago, Brisbane house yields averaged 4.0% with units slightly higher. The 2021-2023 property boom compressed yields temporarily, but strong rental growth of 25-35% since 2020 has restored yield attractiveness. Rent increases accelerated particularly in 2022-2024 as interstate migration peaked.
Compared to one year ago, yields have stabilized with modest improvements in outer suburbs. House prices continued rising but at slower rates, while rents maintained upward pressure due to persistent supply shortages.
Looking ahead, Brisbane is projected to maintain superior yield performance versus Sydney (yields below 3%) and Melbourne (around 3.2%). The 2032 Olympics infrastructure development should support continued rental demand and moderate price growth.
Medium-term forecasts suggest yields may soften slightly as property prices accelerate ahead of Olympic preparation, but Brisbane should retain its yield advantage over southern capitals through the decade. Population growth and limited new supply will likely keep vacancy rates low and rents rising above inflation.
It's something we develop in our Australia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Brisbane's rental market offers compelling opportunities for investors seeking higher yields than Sydney or Melbourne.
With yields ranging from 3.7% to 7.2% and exceptionally low vacancy rates, the city provides both income stability and growth potential ahead of the 2032 Olympics infrastructure development.
Sources
- OpenAgent Brisbane Property Market
- CoreLogic Rental Review Report
- Property Update Brisbane Market Analysis
- Housemark Brisbane Rental Market Dynamics
- Loans.com.au Queensland Rental Yields
- Calibre Real Estate Brisbane Yields 2025
- Global Property Guide Australia
- Relocations WA Brisbane Cost of Living
- NAB Brisbane Property Market Insights
- Smart Property Investment Brisbane Update
-Brisbane Property Buying Process: Complete Guide for Investors
-Can Foreigners Buy Property in Brisbane? Investment Rules and Restrictions
-Should You Buy Property in Brisbane? Market Analysis and Investment Outlook
-Brisbane Real Estate Market Trends: What Investors Need to Know in 2025