Brisbane Real Estate Outlook 2025: Expected Growth or Decline? Expert Predictions, Rental Rates, Returns, and Prime Locations Disclosed!
Brisbane's property market is gearing up for another year of steady growth, according to the latest forecasts from Domain and propertyupdate.com.au. The city, which is expected to outperform or keep pace with the rest of Australia's markets in the coming years, especially on the eve of the 2032 Olympics, is set to see continued growth in both house and unit prices.
The forecast for Brisbane houses is particularly positive, with a predicted 5% annual growth for FY2025-26. This growth is expected to push the median house price to approximately $1.09 million by mid-2026, a significant increase from the current median price of around $1.01 million as of July 2025. It's important to note that this growth rate is similar to that of the previous year, though still below peak levels.
In contrast, the growth trajectory for units in Brisbane is expected to moderate, with a 5% increase forecasted for FY2026, reaching a median of approximately $701,000. This slower growth is attributed to factors such as tight supply and strong demand driven by population growth, infrastructure projects, and rising rents.
The city's property market fundamentals - affordability, growth, and yield - remain compelling, with most analysts expecting continued solid growth. Brisbane remains more affordable than Sydney and Melbourne, attracting buyers looking for a more affordable alternative.
Notable suburbs to watch include Teneriffe and New Farm, which are the top suburbs for buyers and investors, with median house prices of $3.9 million and $3.4 million respectively. On the other hand, North Lakes/Redcliffe and Ipswich/Brassall are attracting builders and buyers due to their low entry prices and new amenities.
For first-time buyers, the First-Home Owner Grant in Queensland offers a $30,000 incentive for contracts signed between 20 Nov 2023 and 30 June 2026. Additionally, the Federal First Home Guarantee, expanded from January 2026, allows first-timers to buy with just a 5% deposit.
In terms of rental yields, houses in Brisbane offer returns of around 4.5-5.2%, while units yield slightly lower, typically 3-4%. Stamp duty concessions for first-home buyers in Queensland also mean zero duty on homes up to approximately $550,000.
One area that has seen robust value gains recently is Woolloongabba, which offers higher rental yields than many inner suburbs. With vacancy rates in Brisbane at historic lows, around 0.8% in January 2025, and rents climbing sharply, with annual growth of approximately 9-10% for houses and even more for units, investing in property in Brisbane appears to be a sound choice.
In conclusion, Brisbane's property market is forecast to continue its steady growth, with house prices steadily rising to just over $1.09 million by FY2026, while unit prices remain strong but with a moderated growth trajectory, holding in the mid-$700,000 range around mid-2026. This reflects Brisbane's relative affordability compared to other capital cities and ongoing urban development boosting demand.
Finance experts predict that the robust growth in Brisbane's housing market is an excellent opportunity for real-estate investing, with both houses and units showing promising projections. The forecast for house prices is particularly optimistic, expecting a 5% annual growth to reach a median of $1.09 million by mid-2026, while unit prices are predicted to moderately increase to around $701,000.
