Brisbane Property Market Update February 2025
Melinda Jennison
Introduction
The Brisbane property market continued its steady, but slowing, trajectory in February 2025, with marginal growth recorded across the city. According to the latest CoreLogic data, Brisbane’s median dwelling value increased by 0.2% over the month, a slight slowdown from January’s 0.3% rise. The quarterly increase now stands at 0.9%, down from 1.2% in January.
Comparatively, on an annual basis, Brisbane remains one of the stronger capital city markets in Australia, with an annual dwelling value increase of 9.7%. This performance is ahead of Sydney (+1.1%) and Melbourne (-3.2%), while trailing behind Adelaide (+11.9%) and Perth (+14.3%). The latest monthly data, however suggests, that other capital city markets are starting to recover with stronger monthly growth recorded in Sydney, Melbourne, Adelaide, Perth and Hobart, compared to Brisbane.
The segmentation between the housing market and the unit market in Brisbane remains obvious, with units continuing to outperform on a monthly , quarterly and annual basis.
Source: CoreLogic
Affordability has played a significant role in shaping market trends, particularly in the Ipswich SA4 region, which recorded an impressive 14.24% growth over the last 12 months. Despite Ipswich’s current median dwelling value of $720,000, the affordability advantage may soon diminish as household budgets are stretched by rising property prices and rental costs.
The affordability-driven growth trend has also been evident at a broader market level, with lower-value properties continuing to appreciate faster. The lower quartile of the Brisbane market recorded a quarterly growth rate of 2.2%, whereas the upper quartile slowed to just 0.4%. Despite this, higher-end properties are still seeing strong demand, with notable sales including a $5.8 million auction sale at 154 Yabba Street, Ascot, and a competitive bidding war for 34 Armentieres Street, Kedron, which sold for $1.5 million with 15 registered bidders.
Source: CoreLogic
Not all suburbs have experienced positive growth across Brisbane. Quarterly declines were recorded in some housing markets, according to CoreLogic, including Hendra (-3.5%), Robertson (-3%), Wooloowin (-3.7%), and Wilston (-4.4%). Conversely, house values have increased in MacGregor (+3.6%), West End (+6.1%), and Eagleby (+3.1%).
However, it is important to recognise that short-term quarterly price trends at a suburb level can often be more reflective of the specific properties that have transacted rather than true price fluctuations across the broader local market. This compositional bias must be considered when analysing such localised trends.
The unit market has generally performed well, with positive quarterly growth in Ashgrove (+3.1%), Brisbane City (+3.3%), and Kangaroo Point (+3.9%), while declines were seen in Taringa (-2.5%), Sherwood (-2.5%), and Enoggera (-1.6%).
Cyclone Alfred is likely to have short-term impacts on the market, as prospective buyers take a cautious approach while assessing potential structural or flood risks. This major weather event may temporarily dampen demand for Brisbane property, creating a period of uncertainty in the immediate future. The full extent of its impact will become clearer over time.
Meanwhile, February’s interest rate cut is likely to inject renewed confidence into the market, especially as the uncertainty around the cyclone passes, with increased borrowing capacity and improved sentiment expected to influence buyer behaviour in the coming months. Sales volume trends indicate that demand remains steady, with a 3.9% annual increase in Brisbane property transactions. However, construction slowdowns continue to impact supply, funnelling more demand toward existing properties. Total listing volumes remained relatively stable in February after January’s seasonal lift, although new listings increased substantially, giving buyers entering the market more immediate choice. While Brisbane’s inventory remains tight compared to other east coast capitals, it is still well below long-term averages.
Investor and first-home buyer activity remains significant, with investors accounting for 40% of housing finance commitments and first-home buyers representing 25.2%. Auction clearance rates in Brisbane declined to 52.8%, down from 55.3% in January and lower than the same period last year.
Brisbane Dwelling Values
Brisbane’s median dwelling value reached $894,425 in February, reflecting a monthly increase of 0.2%, a quarterly increase of 0.9%, and an annual increase of 9.7%. While the overall growth trend remains positive, the rate of growth has slowed compared to previous months. In comparison, Sydney and Melbourne saw stronger month-on-month rebounds (+0.3% and +0.4%, respectively), but remain weaker in quarterly and annual terms.
Source: CoreLogic
Proptrack’s data aligns with CoreLogic’s findings, reporting a minor increase of 0.29% in Brisbane dwelling values for February.
Brisbane House Values
The median house value in Brisbane held steady in February, recording no monthly change, with the quarterly growth rate now at 0.7% and the annual increase at 8.6%. This marks a slowdown from January’s 0.3% increase. The median house value in Brisbane is now $977,381 according to CoreLogic.
Source: CoreLogic
Proptrack reported a slight increase of 0.28% in Brisbane house values for February, which reinforced the trend reported last month of slow growth in the housing segment.
Brisbane Unit Values
Brisbane’s unit market outperformed houses again, with a 0.7% increase in median unit values in February. The segment has shown consistent strength, recording a quarterly gain of 2% and an annual increase of 15.2%. The median value of a unit in Greater Brisbane is now $690,650 according to CoreLogic.
This divergence in performance between houses and units aligns with the broader affordability-driven demand, as buyers and investors continue to shift towards more affordable housing options.
Source: CoreLogic
Proptrack also recorded a minor increase of 0.31% in unit values for February, reaffirming this segment of the market is outperforming the housing sector.
Brisbane’s Rental Market
Brisbane’s rental market remains tight, with vacancy rates dropping to 0.8% in February from 1.2% in January. Annual rental growth for houses stands at 2.8%, while units remain at 3.3%. The graph below demonstrates where house rents are anow falling on an annual basis across many of the inner city locations, whereas unit rents in these suburbs are still increasing. The continued deceleration in house rental growth suggests affordability constraints may be limiting further rental increases, whereas unit rents are holding steady.
Source: CoreLogic
Summary
February 2025 has demonstrated continued but moderating growth for Brisbane’s property market, with houses experiencing a month of growth stagnation, while unit values continue to outperform.
The February interest rate cut is expected to boost buyer confidence and borrowing capacity, potentially leading to increased demand in the coming months. However, the cyclone event may introduce short-term hesitation among buyers.
Investor participation remains strong, making up 40% of new finance commitments, while affordability constraints continue to shape market trends. Looking ahead, infrastructure projects related to the 2032 Olympics are expected to support economic growth, enhancing Brisbane’s long-term investment potential.
Overall, Brisbane’s market remains stable, with moderate price growth expected to continue through 2025, supported by favourable economic conditions and strong buyer demand.
We hope that you have found our Brisbane Property Market Update February 2025 helpful.
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