The Brisbane property market has been a hot topic in recent years, especially as it continues to evolve amidst changing economic conditions and demographic shifts. With a blend of affordability, lifestyle appeal, and robust infrastructure development, Brisbane is emerging as a prime location for property investment. In this article, we will dive into the current state of the Brisbane real estate market, the factors driving its growth, and what potential investors can expect in 2025.
Current Market Overview
The Brisbane property market has shown remarkable resilience, bouncing back from the pandemic-induced downturn. Following a significant surge in home values, which saw an increase of over 42% from the COVID-19 lows to the peak in mid-2022, the market has stabilised and is now witnessing a steady recovery. As of February 2025, the median price for all dwellings in Brisbane stands at approximately $894,425, reflecting a year-on-year increase of nearly 9.7%.
House Prices
The median house price in the Brisbane property market has reached around $977,381, with a modest quarterly growth of 0.7% and an annual increase of 8.6%. This growth trajectory indicates that while the market is experiencing some cooling, demand remains strong, particularly in desirable suburbs.
Unit Prices
In contrast, the unit market has outperformed houses in recent months, with a median price of $690,651, marking a significant annual increase of 15.2%. This trend suggests that units are becoming increasingly attractive to both first-time buyers and investors, particularly in light of rising house prices.
Factors Driving Growth
Several key factors are propelling the Brisbane property market forward, making it an attractive option for investors.
Population Growth
Brisbane has been a magnet for interstate migration, particularly from New South Wales and Victoria. The allure of a more affordable lifestyle, coupled with job opportunities, has led to a surge in population growth. This influx is placing sustained pressure on housing demand, particularly in inner and middle-ring suburbs.
Infrastructure Development
The city is undergoing an infrastructure boom, with billions being invested in projects such as the Cross River Rail, Brisbane Metro, and the Queen’s Wharf development. These initiatives are enhancing connectivity and liveability, making previously undervalued suburbs more appealing to buyers and renters alike.
Upcoming Events
Brisbane’s hosting of the 2032 Olympics is another catalyst for growth. The event is expected to elevate the city’s profile on a global scale, attract further investment, and boost property values. Historically, cities that host the Olympics experience a surge in property prices, and Brisbane is poised to follow suit.
Affordability Compared to Sydney and Melbourne
In contrast to Australia’s two largest cities, Brisbane offers more accessible entry points for property buyers. The median house price in Brisbane (approximately AUD 1.3 million) remains significantly lower than Melbourne’s, making it appealing for both owner-occupiers and investors who find themselves priced out of southern markets.
The Brisbane real estate market also presents more favourable entry costs. It ranks as the sixth most expensive city for stamp duty on an average home, with only Hobart and Darwin having lower rates. This affordability advantage has become increasingly significant as Brisbane’s relative value attracts buyers from southern states.
The affordability challenge within the Brisbane real estate market itself has created strong demand for units, with this segment recording stronger growth than houses both over the month (0.5% vs 0.4%) and the quarter (1.6% vs 0.9%). With house prices approaching AUD 1.53 million, units have become the only viable entry point for many buyers seeking to live within 10 kilometres of the CBD.
Best Brisbane Suburbs to Watch This Year
Across Brisbane’s diverse regions, certain suburbs stand out as auspicious investment opportunities in 2025. Each area offers distinct advantages based on location, infrastructure, and community appeal.
Inner Ring: Paddington, Red Hill, Highgate Hill
These prestigious inner-city locations will continue to attract strong buyer interest throughout 2025. Paddington, with its median house price reaching AUD 2.91 million, remains highly sought after thanks to its unique suburban lifestyle in close proximity to the city. The suburb features tree-lined streets, heritage buildings and a thriving café culture that maintains consistent demand. Red Hill similarly commands impressive property values at AUD 2.37 million, offering a blend of heritage charm and strong café culture. Highgate Hill completes this trifecta of inner-city performers, where boutique apartments perform exceptionally well owing to the area’s vibrant, eclectic atmosphere and proximity to entertainment options.
Middle Ring: Ashgrove, Holland Park, Everton Park
Within Brisbane’s middle ring, family-friendly suburbs present compelling opportunities for both homebuyers and investors. Ashgrove stands out with its consistent property demand and strong capital growth potential. Holland Park offers excellent value with good schools and leafy streets, making it increasingly popular among families seeking quality living environments at more accessible price points than the inner ring. Everton Park, merely 8km north of the CBD, features a median house price of AUD 1.93 million for four-bedroom properties, according to recent sales data. The suburb benefits from proximity to shopping centres and excellent transport links.
Growth Corridors: Mitchelton, Nundah, Woolloongabba
Among Brisbane’s emerging growth corridors, several suburbs merit close attention this year. Nundah, with its median house price reaching AUD 1.87 million, boasts a vibrant community lifestyle with excellent amenities and transport links. The suburb’s strong rental yields make it particularly attractive to investors. Mitchelton continues to undergo significant gentrification, with community investment driving property values upward. Perhaps most notably, Woolloongabba, with a current median house price of AUD 2.06 million, stands poised for substantial growth given its central role in the 2032 Olympics.
Property experts have reported anecdotal price increases of up to 30% in the second half of 2021 in this eastern corridor, with houses collecting a 7.1% quarterly median price increase. Infrastructure investments like the AUD 8.26 billion Cross River Rail will further enhance accessibility and demand in this area.
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Investment Opportunities
Understanding which areas and property types are likely to yield the best returns is crucial for those considering entering the Brisbane property market.
High-Performing Suburbs
Investors should focus on established suburbs with lifestyle appeal. Areas such as Paddington, Ashgrove, and New Farm are expected to continue performing well due to their proximity to the CBD and vibrant community amenities. Additionally, suburbs like Indooroopilly and Kenmore are gaining traction for their family-friendly environments and excellent schools.
Detached Homes vs. Units
While detached homes remain a staple of the Brisbane property market, units are increasingly becoming a viable option for investors. The shift towards medium-density living is clear, with townhouses and boutique apartments in inner-city neighbourhoods drawing young families and professionals looking for inexpensive alternatives to traditional homes.
Rental Market Dynamics
Brisbane’s rental market remains tight, with vacancy rates hovering around 1%. This low availability is driving rental prices up, making it an opportune time for investors to enter the market. Strong rental yields, particularly in sought-after suburbs, are providing attractive returns for property owners.
Challenges Ahead
Despite the positive outlook, potential investors should be aware of the challenges facing the Brisbane property market.
Interest Rates
The Reserve Bank of Australia’s interest rate decisions will play an important role in shaping the market’s trajectory. With rates currently at 4.10%, any future hikes could dampen buyer sentiment and affordability. However, forecasts suggest that rates may begin to decrease, which could reignite buyer interest.
Affordability Concerns
As property prices continue to rise, affordability is becoming a pressing issue for many potential buyers. Investors should consider targeting suburbs where wages are increasing at a faster rate than average, ensuring that residents can sustain rental payments and property purchases.
Conclusion – Brisbane Property Market
The Brisbane property market is a dynamic landscape filled with opportunities for savvy investors. With its strong fundamentals, attractive lifestyle offerings, and significant infrastructure developments, Brisbane will remain a key player in Australia’s real estate scene. As we move towards 2025, those looking to invest in the Brisbane property market should keep a close eye on market trends and emerging suburbs to maximise their investment potential. By understanding these factors, potential investors can make informed decisions in this thriving market.
Is the Brisbane property market still growing in 2025?
Yes, Brisbane’s property market continues to show strong growth in 2025. While the rate of increase has slowed compared to previous years, the market is supported by strong fundamentals such as high demand and tight supply. The median dwelling value has increased, making Brisbane the second most expensive capital city in Australia.
Which suburbs in Brisbane are expected to perform well in the coming years?
Several suburbs are poised for substantial growth, particularly those connected to major infrastructure projects and the 2032 Olympics. Areas like Woolloongabba, South Brisbane, and Hamilton have already shown significant price increases. Inner-ring suburbs such as Paddington and Red Hill, as well as middle-ring areas like Ashgrove and Holland Park, are also attracting strong interest from buyers and investors.
How are rental yields performing in Brisbane?
Brisbane’s rental market is extremely tight, with vacancy rates as low as 0.7%. This has led to impressive rental yields, ranging from 5.2% to 7.2% in top-performing suburbs. Spring Hill leads with a 7.2% yield, while areas like Fortitude Valley and Waterford West offer yields of 6.6% and 6.5%, respectively. This environment makes Brisbane particularly attractive for yield-focused investors.
What impact will the 2032 Olympics have on Brisbane’s property market?
The 2032 Olympics are expected to have a significant positive impact on Brisbane’s property market. Suburbs with Olympic venue connections have already demonstrated strong price growth, and some experts suggest that property prices in Olympics-linked areas could potentially double before 2032. The event is also accelerating infrastructure investment across the city, which is likely to drive further property value increases.
Are there any specific property types performing particularly well in Brisbane?
Yes, certain property types are outperforming others in Brisbane’s market. Detached houses in established suburbs, particularly in inner and middle-ring areas, are showing exceptional capital growth. Townhouses in suburbs like Greenslopes, Carina, and Stafford are gaining popularity, offering a balance between space and affordability. Additionally, boutique apartments in premium locations such as New Farm and West End are performing strongly, appealing to buyers seeking high-end, low-density living options.