Brisbane Property Market Forecast 2025

Published

September 5, 2024

The Brisbane property market has a rich history of growth and resilience, often outperforming other major Australian cities in terms of stability and long-term value. As we approach 2025, understanding the historical performance of the property market in Brisbane is essential for making informed investment decisions. 

The market has experienced various phases, from rapid price increases to periods of stability, all shaped by economic conditions, demographic changes, and policy interventions. Additionally, the lingering impacts of COVID-19 have continued to influence the market, albeit in more subtle ways as recovery efforts take hold.

Current State of the Brisbane Property Market

The current state of the property market in Brisbane reveals a dynamic environment characterised by both opportunities and challenges. Recent trends show a steady increase in property prices, with some areas experiencing significant growth due to increased demand and limited supply. 

Brisbane’s rental market continues to be tight, with a vacancy rate of just 1% at the time of writing. Although rental growth has slowed in the unit segment, there is a renewed uptick in rent increases for houses. In Greater Brisbane, the gross yield for houses currently remains steady at 3.6%, while the gross yield for units has slightly declined from 5% to 4.9% month-on-month.

Long-term trends in the Brisbane property market indicate a consistent pattern of growth, though there have been notable fluctuations in response to economic shifts and external shocks. 

For example, post-COVID economic recovery has led to an uptick in transaction volumes and a gradual increase in prices, particularly in the residential sector. 

According to CoreLogic, Brisbane’s dwelling values had increased by 56.8 per cent since the onset of the pandemic lifting the median by $300,000 to $827,822, the second highest in the country, behind Sydney.

Fresh stock in Brisbane climbed 11.1 per cent higher compared to a year ago, while total listings are 1.2 per cent lower.

Development Projects

Several significant development projects are underway in Brisbane, each poised to reshape the property market landscape. Notable among these is the Queen’s Wharf development, which includes a mix of residential, commercial, and infrastructure projects. 

These developments are expected to have a profound impact on property prices, rental demand, and job creation in surrounding areas. The introduction of new amenities and improved infrastructure will likely enhance the appeal of these areas, driving both residential and commercial growth.

Urban renewal initiatives are also playing a crucial role in revitalising neighbourhoods and boosting property values. Projects focused on improving public spaces, upgrading transport links, and enhancing local amenities are expected to make certain areas more attractive to both residents and investors, leading to increased demand and higher property prices in the long term.

Key Factors Influencing the Market

Several key economic indicators are currently influencing the Brisbane property market. Factors such as GDP growth, unemployment rates, and changes in interest rates directly affect property demand and investment sentiment. Additionally, population growth, age distribution, and migration patterns continue to shape the market dynamics, with a younger demographic and interstate migration driving demand for urban living and high-density housing.

Government policies, including those related to stamp duty, foreign investment, and infrastructure spending, are also critical to the property market in Brisbane. Recent changes in these areas have the potential to either stimulate or dampen market activity, depending on their direction and magnitude. 

Global economic factors, such as trade tensions and potential recessions, also play a role in shaping the market outlook. As an open economy, Australia is susceptible to global economic shifts, which can have downstream effects on property prices and demand in Brisbane.

Forecasted Trends

Looking ahead to 2025, the Brisbane property market forecast suggests a cautious yet optimistic outlook. Property prices are expected to continue their upward trajectory, albeit at a moderated pace due to balancing factors like economic conditions and interest rate changes. Rental yields are predicted to remain stable, with specific areas experiencing higher demand due to factors such as job growth, student accommodation needs, and lifestyle preferences.

The balance between property supply and demand will be a key determinant of market conditions. While some areas may experience oversupply due to new developments, others are likely to face shortages, driving up prices and competition among buyers. Emerging neighbourhoods, particularly those undergoing urban renewal, are expected to see significant appreciation in property values.

Opportunities and Risks

For investors looking at the Brisbane property market, several opportunities stand out. High-yield rental properties in growth areas, such as those near new infrastructure projects or urban renewal zones, offer attractive investment potential. However, risks such as market corrections, potential interest rate hikes, and broader economic downturns must be carefully considered. Diversification, due diligence, and seeking professional advice are essential strategies for navigating these risks.

Conclusion and Recommendations

The overall outlook for the Brisbane property market in 2025 is positive, with growth expected across various sectors. However, investors and stakeholders should remain vigilant of potential risks and market fluctuations. For buyers, sellers, and investors, understanding the nuances of the market and staying informed about economic and policy changes will be key to making successful property decisions.

By focusing on emerging trends, new development projects, and key economic indicators, stakeholders can position themselves advantageously in the evolving Brisbane property market.