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Yes, the analysis of Brisbane's property market is included in our pack
Brisbane's property market is experiencing robust growth as we reach mid-2025, with units outperforming houses in price appreciation and rental demand remaining exceptionally strong across most suburbs.
The market shows clear signs of continued momentum, driven by tight supply conditions, strong population growth, and improving buyer sentiment as interest rates begin to decline. Key indicators point to sustained growth potential, particularly in middle-ring suburbs and unit markets where affordability pressures are redirecting buyer preferences.
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Brisbane's median property price reached $917,992 in June 2025, with units leading growth at 11.8% annually compared to houses at 6.2%.
Supply constraints and vacancy rates below 1% continue to drive price appreciation, with forecasts suggesting 5-7% growth for houses and up to 10% for units over the next 12 months.
| Key Metric | Current Status | Annual Change | Market Outlook |
|---|---|---|---|
| Median House Price | $1,000,422 | +6.2% | Steady growth expected |
| Median Unit Price | $709,823 | +11.8% | Strong growth continuing |
| Rental Vacancy Rate | ~1.0% | Extremely tight | Supply shortage persisting |
| Rental Yields (Houses) | ~3.5% | Stable | Supported by low vacancy |
| Rental Yields (Units) | ~4.5% | Stable | Strong investor appeal |
| New Supply Pipeline | 1,300 apartments by 2026 | Below demand | Continued supply shortage |
| Interest Rate Impact | Recent cuts improving sentiment | Positive | Further stimulus expected |
What's the current average property price in Brisbane and how has it changed recently?
Brisbane's median property price reached $917,992 as of June 2025, reflecting steady upward momentum across the market.
Houses command a median price of $1,000,422, showing a 6.2% increase over the past 12 months. The quarterly growth has been more moderate at 1.5% over three months and approximately 3.0% over six months, indicating a sustainable pace of appreciation rather than speculative bubbling.
Units have significantly outperformed houses with a median price of $709,823, representing an impressive 11.8% annual growth. This strong performance is driven by affordability pressures pushing buyers toward more accessible price points and the appeal of inner-city living. Units have gained 2.4% in the past three months and approximately 4.8% over six months.
The trend clearly shows units leading market growth, with their annual appreciation nearly double that of houses. This shift reflects changing buyer preferences and the reality that many purchasers are being priced out of the detached house market.
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Which Brisbane suburbs are experiencing the fastest price growth right now?
Inner-ring prestige suburbs are leading growth, with Paddington, Red Hill, Highgate Hill, New Farm, and Teneriffe showing exceptional appreciation driven by lifestyle appeal and proximity to the CBD.
Middle-ring family-oriented suburbs including Tarragindi, Holland Park, Ashgrove, Chermside West, and Everton Park are experiencing strong demand from families seeking quality schools, parks, and infrastructure access. These areas offer the sweet spot of accessibility and relative affordability that attracts both owner-occupiers and investors.
Growth corridor suburbs like Mitchelton, Nundah, Carina, and Woolloongabba are benefiting from gentrification trends and infrastructure investment, particularly the Olympic precinct development around Woolloongabba. Springfield Lakes and Coorparoo have reported double-digit annual growth, reflecting their appeal to first-home buyers and young families.
The common thread among high-growth suburbs is either established prestige and scarcity (inner ring), family appeal with good amenities (middle ring), or transformation potential through infrastructure and gentrification (growth corridors).
How do house prices compare to unit prices across Brisbane?
The price gap between houses and units has narrowed significantly, with units now delivering superior growth rates and attracting increased buyer interest.
Houses maintain a premium with a median of $1,000,422 compared to units at $709,823, representing approximately a $290,000 difference. However, this gap has been closing as unit prices rise faster than house prices, reflecting a market shift toward more affordable housing options.
Units are outperforming houses in appreciation, gaining 11.8% annually versus 6.2% for houses. This trend reflects affordability constraints pushing buyers toward units, particularly in desirable inner-city locations where house prices have become prohibitive for many purchasers.
The evolving trend shows more buyers accepting units as their preferred choice rather than a compromise, especially younger demographics and downsizers who value location and lifestyle over space. This fundamental shift in buyer preferences is supporting sustained unit price growth.
What are the rental yields and vacancy rates in key Brisbane suburbs?
| Suburb | House Yield | Unit Yield | Vacancy Rate |
|---|---|---|---|
| Chermside West | 3.4% | N/A | 0.69% |
| Cannon Hill | 2.8% | 4.7% | 0.88% |
| Nundah | 3.3% | 4.9% | 1.01% |
| Wynnum | 3.3% | 4.1% | 0.90% |
| Mansfield | 3.2% | 4.6% | 0.82% |
| Yeronga | 2.9% | 4.4% | 0.97% |
| Heathwood | 4.0% | N/A | 0.76% |
Which suburbs offer the best return on investment for different strategies?
Short-term flipping strategies should focus on suburbs experiencing rapid gentrification and infrastructure-driven growth.
Woolloongabba, Nundah, Carina, and Springfield Lakes present the strongest flipping opportunities due to their rapid price appreciation and ongoing transformation. These areas benefit from infrastructure investment, gentrification trends, and changing demographics that drive quick capital gains.
Long-term rental investment strategies perform best in suburbs offering high yields combined with low vacancy rates. Nundah, Cannon Hill, Mansfield, and Chermside West provide the optimal combination of rental returns above 3.2% for houses and 4.5% for units, while maintaining vacancy rates below 1%.
Heathwood stands out for rental yield at 4.0% for houses with only 0.76% vacancy, making it particularly attractive for income-focused investors. The key is matching investment timeframe with suburb characteristics - growth potential for flipping, yield sustainability for holding.
How does the supply pipeline look for Brisbane property?
Brisbane faces a critical supply shortage with only 1,300 new apartments expected by 2026, far below population growth requirements.
Construction constraints including high build costs, labor shortages, and regulatory challenges are severely limiting new project launches. This is particularly acute in the mass-market segment where demand is strongest but profit margins are thinnest for developers.
Current listings remain low across all property types, creating ongoing upward pressure on both sale prices and rental rates. The supply-demand imbalance is most pronounced in the affordable housing segment, where first-home buyers and investors compete for limited stock.
This supply constraint is a fundamental driver supporting continued price appreciation and rental growth. Without significant policy intervention or construction industry resolution, the shortage will persist through 2025 and beyond, maintaining market momentum.
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Are buyers or sellers currently dominating Brisbane's market?
Sellers maintain the upper hand in Brisbane's property market, though some segments are showing signs of rebalancing.
Low listing levels continue to favor sellers, with quality properties attracting multiple offers and selling quickly. However, a growing mismatch has emerged between buyer expectations and seller pricing, particularly in inner-city prestige suburbs where price gaps can exceed $700,000-$800,000.
Competition remains strong but is showing signs of moderation as affordability constraints affect buyer capacity. Days on market have increased slightly in some segments, indicating that while demand remains robust, buyers are becoming more selective about pricing.
The market is evolving toward a more balanced state, where sellers still hold advantages but must price more realistically to achieve sales. This is particularly evident in the premium segment where discretionary buyers have more alternatives.
How do different price brackets perform in Brisbane?
The under $700,000 bracket offers limited supply concentrated in outer suburbs, creating intense competition among first-home buyers.
Properties under $700,000 are primarily found in suburbs like Goodna, Woodridge, Inala, and Bellbird Park. Despite the outer locations, demand from first-home buyers drives fierce competition for available stock, supporting strong price growth in this segment.
The $700,000-$1.2 million bracket represents the most active market segment, encompassing middle-ring family suburbs and quality units in inner-city areas. This price range delivers the strongest appreciation and deepest buyer pool, making it the market's sweet spot for both volume and growth.
Properties above $1.2 million in prestige suburbs like New Farm, Teneriffe, and Ascot maintain robust demand but show moderating growth as affordability caps are reached. While these blue-chip locations remain resilient, price appreciation is slowing compared to more affordable segments.
Which areas suit different types of buyers right now?
First-home buyers should focus on affordable outer suburbs and unit markets where entry-level pricing remains accessible.
Bellbird Park, Goodna, Woodridge, and Inala offer house options under $700,000, while units in middle and inner-ring suburbs provide alternative pathways to home ownership. These areas require compromise on location but offer genuine affordability for entry-level buyers.
Investors achieve optimal returns in suburbs combining high yields with low vacancy rates. Nundah, Cannon Hill, Mansfield, Chermside West, Wynnum, and Springfield Lakes provide rental yields above 3.2% for houses and 4.5% for units, while maintaining vacancy below 1%.
Downsizers prefer inner-city units in New Farm, Teneriffe, and South Brisbane, plus boutique developments in lifestyle suburbs offering walkability and amenities. These buyers prioritize location, convenience, and quality over space, making well-positioned units ideal choices.
How are interest rates and lending affecting Brisbane property?
Recent interest rate cuts are boosting buyer confidence and borrowing capacity, providing additional market stimulus.
Expectations of further rate reductions are encouraging both upgraders and investors to re-enter the market, increasing demand pressure. Lower borrowing costs improve serviceability calculations, allowing buyers to qualify for larger loans and consider higher-priced properties.
However, lending institutions maintain cautious serviceability assessments and buffer requirements, preventing excessive leverage. This balanced approach supports genuine buyers while limiting speculative activity that could destabilize the market.
The interest rate trajectory favors continued property market growth, particularly benefiting upgraders and investors who can leverage improved borrowing conditions. First-home buyers also benefit from improved affordability, though supply constraints limit their options.
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What's the forecast for Brisbane property over the next 6-12 months?
Most forecasts predict continued growth of 5-7% for houses and 7-10% for units over the next year, driven by fundamental supply-demand imbalances.
Population growth, undersupply, and improved buyer sentiment from lower interest rates form the foundation for sustained appreciation. Units are expected to outperform houses as affordability pressures continue redirecting buyer preferences toward more accessible price points.
Key risks include construction constraints that could worsen supply shortages and affordability caps that might slow growth in premium segments. However, the overall outlook remains positive barring external economic shocks or policy interventions.
The market shows resilience across multiple indicators, suggesting growth will continue at moderate but sustainable rates. Supply constraints provide fundamental support for pricing, while improving credit conditions enhance buyer capacity.
Where should you buy now for optimal positioning?
Budget allocation determines optimal positioning across Brisbane's diverse market segments.
- Under $700,000: Target outer suburbs like Goodna, Woodridge, and Inala for houses, or quality units in middle-ring suburbs for best value and growth potential
- $700,000-$1.2 million: Focus on family-friendly suburbs including Chermside West, Holland Park, Mansfield, Nundah, and Tarragindi, or premium units in inner-city precincts for balanced growth and rental returns
- Above $1.2 million: Consider blue-chip inner-city locations like New Farm, Teneriffe, and Ascot for prestige buyers or downsizers seeking lifestyle and long-term capital growth
- For owner-occupiers: Prioritize family homes in middle-ring leafy suburbs or lifestyle units close to the CBD that match your lifestyle requirements
- For rental investors: Target units in high-demand, low-vacancy suburbs with strong yields, particularly Nundah, Cannon Hill, and Mansfield
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 property market demonstrates remarkable resilience with units leading growth and supply constraints supporting continued appreciation.
Strategic buyers should align their investment approach with current market dynamics, focusing on suburbs that offer the best combination of growth potential, rental yields, and buyer demand for their specific objectives.
It's something we develop in our Australia property pack.
Sources
- Property Update - Brisbane Property Market Outlook
- Metropole - Brisbane Housing Market Update
- Real Estate Business - Brisbane Property Market Update May 2025
- Australian Property Professionals - Best Investment Suburbs Brisbane
- Australian Property Professionals - Property Market Forecast 2025
- Smart Property Investment - Brisbane Market Update
- Real Estate Asia - Brisbane Supply Pipeline
- Domain - Brisbane Buyers and Sellers Gap
- Key Law - Affordable Brisbane Suburbs 2025
- Brisbane Home Loan - Interest Rate Impacts 2025-2026