Investors Still Backing Brisbane’s Most Affordable Market Segments
Affordable suburbs and units are driving Brisbane’s continued but slowing property price growth, as investors seek higher rental yields and potential bargains.
Brisbane’s Affordable Property Market Outperforms High-End Segments
Brisbane’s most affordable quartile is comfortably outpacing the top end of the real estate market, with investors targeting units driving much of the remaining capital growth. While the high growth of 2024 is cooling, Brisbane’s overall price growth continued in January, thanks to units doubling the pace of house price growth.
With vacancy rates at critically low levels, investors chasing rental yields on affordable properties have ensured Brisbane sits just below Adelaide and Perth for capital growth in early 2025.
Brisbane Property Market Overview: January 2025
According to the latest CoreLogic data, Brisbane dwelling values rose by 0.3% in January, contributing to a 1.2% increase over the last quarter and a 10.4% annual gain.
Sydney and Melbourne recorded monthly declines of -0.4% and -0.6%, respectively.
Adelaide and Perth outperformed Brisbane with gains of 0.7% and 0.4%.
Over the past 12 months, Perth led with 17.1% growth, followed by Adelaide at 12.7% and Brisbane at 10.4%.
Affordable Suburbs and Units Drive Growth
Brisbane’s lower quartile has experienced the strongest growth, driven by first-home buyers and investors seeking affordability.
Median dwelling value: $893,592 (January 2025)
Unit market growth:
Monthly increase: 0.6%
Quarterly growth: 2.1%
Annual growth: 15.8%
Median unit value: $685,291
Gross rental yield: 4.5% for units vs. 3.5% for houses
In contrast, house prices rose by 0.3% for the month, with the median house price reaching $977,343.
Brisbane’s Tight Rental Market
Brisbane’s rental market remains exceptionally tight, with vacancy rates edging up slightly to 1.2% in December.
House rents: Increased by 2.9% year-on-year
Unit rents: Maintained steady annual growth of 3.5%
The data suggests sustained demand for apartments as an affordable alternative to detached housing.
Modest Growth Outlook for Brisbane in 2025
The increased likelihood of interest rate cuts in early 2025 is expected to boost buyer confidence and borrowing power, potentially stimulating renewed demand.
Key factors influencing the market:
Federal election: Potential uncertainty around housing policies
High construction costs: Limiting new housing development
Supply constraints: Reinforcing competition for available properties
While price growth is expected to persist throughout 2025, it is likely to occur at a more moderate pace.
Queensland Property Boom Shifts to Regional North
Property buyers priced out of Brisbane are heading north, with Melbourne and Sydney investors particularly active in regional Queensland.
Conclusion: Brisbane’s Long-Term Market Strength
With solid market fundamentals, a resilient economy, and continued migration into Brisbane, the city remains well-positioned for long-term property market strength. Investors and first-home buyers alike are capitalizing on affordable suburbs and units, ensuring sustained demand in 2025 and beyond.
If you have inquiries about home loans or need assistance navigating the changing financial landscape, contact all seasons. finance. Our experienced team can guide you through the complexities of securing the right loan, refinancing, or planning for future changes in interest rates. Reach out to us today to take control of your financial future.
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