Brisbane property market update, January 2025

When comparing Brisbane’s performance with other major cities, Sydney (-0.4 per cent) and Melbourne (-0.6 per cent) recorded monthly declines in January, whereas Adelaide (0.7 per cent) and Perth (0.4 per cent) experienced more substantial gains. Over the past 12 months, Perth has led capital city markets with a 17.1 per cent growth rate, followed by Adelaide at 12.7 per cent, and Brisbane at 10.4 per cent.

Market analyst Michael Matusik’s latest property report suggests that Brisbane remains in the early stages of a rising market cycle, where demand continues to outpace supply, placing upward pressure on property values. Despite a seasonal dip in both new and total property listings over December and January, buyer activity remains strong, with many eagerly awaiting fresh stock to enter the market. Listing volumes in Brisbane remain well below long-term averages, a contrast to Sydney and Melbourne, where inventory levels have increased.

Investor participation remains significant, accounting for 40 per cent of housing finance commitments in Queensland, while first home buyers represent 25.2 per cent of new loans. Auction activity in Brisbane reflected seasonal trends, with an average clearance rate in January of 55.3 per cent, according to CoreLogic, which is lower than 12 months ago, but this is also based off a lower volume of auctions compared to the same period last year.

Anticipation of potential interest rate cuts as early as February could further strengthen buyer sentiment, potentially increasing demand for Brisbane properties from owner-occupiers and investors alike as borrowing capacity improves.

Brisbane dwelling values

The latest CoreLogic data reports that Brisbane’s median dwelling value in January 2025 reached $893,592, reflecting a 0.3 per cent monthly increase, 1.2 per cent growth over the last quarter, and a 10.4 per cent increase year-on-year. The city’s dwelling value growth continues to exceed the combined capitals’ annual average of 3.8 per cent.

Source: CoreLogic

Breaking down the market segments, the lower quartile has experienced the strongest growth, driven by first home buyers and investors seeking affordability. Mid-tier properties have demonstrated moderate gains, while the upper quartile has shown slower appreciation, largely due to affordability constraints at higher price points.

Source: CoreLogic

PropTrack’s index for Brisbane recorded a slight increase of 0.1 per cent in January, further confirming a trend of steady growth.

Brisbane house values

The median house price in Brisbane rose to $977,343 in January 2025, reflecting 0.3 per cent growth for the month, 1 per cent growth over the quarter, and a 9.4 per cent annual increase. While house price growth has moderated compared to previous months, Brisbane remains ahead of Perth, where quarterly growth rates have now slowed below Brisbane’s. Additionally, Brisbane’s house market continues to outperform Sydney and Melbourne, both of which recorded declines over the last quarter.

PropTrack’s data aligns closely with CoreLogic, reporting that Brisbane house values increased by 0.1 per cent in January, further reinforcing the trend of slowing price appreciation in the housing market.

Source: CoreLogic

Brisbane unit values

Brisbane’s unit market again outperformed houses in January, with median unit values increasing by 0.6 per cent for the month, 2.1 per cent over the quarter, and 15.8 per cent year-on-year. This growth highlights the increasing demand for more affordable housing options compared to detached houses. The median unit value in Greater Brisbane is now $685,291.

CoreLogic’s analysis indicates that Brisbane’s unit market has reaccelerated, in contrast to the slowing pace of house price growth. Investors are particularly drawn to units due to their higher gross rental yield advantage of 4.5 per cent, compared to 3.5 per cent for houses.

PropTrack data supports these findings, reporting a 0.2 per cent increase in Brisbane unit values for January, confirming the strength of this market segment.

Source: CoreLogic

Brisbane's Rental Market

Brisbane’s rental market remains exceptionally tight, with vacancy rates edging up slightly to 1.2 per cent in December, up from 1 per cent in November. Despite this minor seasonal increase, demand for rental properties continues to outstrip supply.

Annual rental price trends indicate that house rents increased by 2.9 per cent year-on-year, a slight decline from the 3.2 per cent growth recorded in December, while unit rents maintained steady annual growth of 3.5 per cent.

The data suggests that while house rents have shown a slight moderation in growth, unit rents have remained stable, indicating sustained demand for apartments as an affordable alternative to detached housing.

Source: CoreLogic

Summary

The Brisbane property market commenced 2025 with continued stability, maintaining steady growth despite slowing trends in Sydney and Melbourne. Key observations include the continued slowdown in house price appreciation, contrasted by accelerating unit price growth. Investor demand remains strong, while first home buyers continue to seek entry into the market amid affordability challenges.

The increased likelihood of interest rate cuts in early 2025 is expected to provide a boost to buyer confidence and borrowing power, potentially stimulating renewed demand in the coming months. Additionally, buyer activity in January was uncharacteristically strong, with heightened attendance at open homes and increasing demand for professional buyer’s agents, suggesting that many are seeking expert guidance to navigate current market conditions.

As the year progresses, attention will turn to the federal election, which may introduce some uncertainty in the market, particularly if housing policies become a focal point of political debate. Furthermore, high construction costs and ongoing supply constraints remain significant factors limiting new housing development, reinforcing continued competition for available properties.

While price growth is expected to persist throughout 2025, it is likely to occur at a more moderate pace. Nonetheless, with solid market fundamentals, a resilient economy, and continued migration into Brisbane, the city remains well-positioned for long-term property market strength.