Brisbane Property Market Update March 2025
Melinda Jennison
Introduction
It has been an exciting start to the year for Brisbane, and March 2025 delivered a major announcement that will help shape the city’s future for years to come. The finalisation of infrastructure projects for the 2032 Brisbane Olympic Games has cemented plans for inner-city transformation. This long-awaited clarity surrounding venues and associated infrastructure is set to bring forward significant urban renewal, increased investor interest, and broader economic confidence. The ripple effect on the local property market, especially in Brisbane’s inner and middle-ring suburbs, cannot be underestimated.
The Olympic announcement comes at a time when the Brisbane property market continues its upward trajectory. According to CoreLogic, Brisbane’s dwelling values rose by 0.4% in March, a modest re-acceleration from February’s 0.2% increase. Over the quarter, values rose 0.9%, matching February’s quarterly figure and bringing the annual growth to 8.6%. Brisbane outperformed many of its capital city counterparts, including Sydney (0.3% monthly, 0.4% quarterly, 0.9% annually) and Melbourne (0.5% monthly, 0.3% quarterly, -2.6% annually), highlighting the strength of Brisbane’s fundamentals.
Due to strong buyer interest, homes are not sitting on the market for long. Median days on market dropped to just 22 days in March, down from 24 days in February signalling a slight uptick in demand and competition.
Another promising sign was Brisbane’s resilience following ex-tropical Cyclone Alfred. Contrary to early predictions, the weather event had a negligible impact on property demand, which has remained strong across both the housing and unit segments.
Insights from the latest HIA housing forecasts place Brisbane in a strong but challenging position. Nationally, more homes are being completed than commenced, which points to a looming supply crunch. This is particularly relevant for Brisbane, where high levels of interstate migration continue to drive demand, yet land availability close to the city remains scarce. The growing mismatch between new completions and starts is expected to tighten supply well into 2026, exacerbating price pressures.
Compounding this issue is the rising cost of new builds. Brisbane’s greenfield house and land packages now average $830,000, up from approximately $500,000 in 2020.
Source: HIA Economics
Migration trends further highlight Brisbane’s unique position. While New South Wales and Victoria continue to attract the bulk of overseas migrants, Brisbane leads the nation in net interstate migration. Lifestyle appeal, relative affordability, and strong employment opportunities make Brisbane particularly attractive, fuelling underlying demand for housing.
Source: HIA Economics; ABS
At the same time, real wage growth across the country remains subdued, yet consumer sentiment has been on the rise, bolstered by the February interest rate cut. Improved confidence and a moderate lift in borrowing capacity have reignited buyer activity.
A looming supply shortfall further intensifies the competitive landscape. With the federal government’s 1.2 million home target over five years appearing increasingly unrealistic, the imbalance between demand and supply is expected to persist. This is particularly relevant to Brisbane’s tightly held inner and middle-ring markets.
Finally, high taxation on new homes further reinforces the appeal of established dwellings. Brisbane buyers face taxes and charges of up to $348,000 on greenfield homes and approximately $256,000 on infill apartments. These additional costs are driving demand toward existing housing stock.
Source: HIA Economics
Brisbane Dwelling Values
In March, Brisbane’s median dwelling value climbed to $899,824, a monthly increase of 0.4%, matching the national average. This builds on February’s 0.2% rise, suggesting re-acceleration. Quarterly growth remained steady at 0.9%, while annual growth reached 8.6%.
Proptrack’s March data showed positive price growth also, recording a 0.07% monthly uplift.
When examining the market by segment, lower quartile properties experienced the strongest quarterly growth at 2.6%, significantly outpacing the upper quartile which recorded just 0.4%. This trend clearly highlights the ongoing influence of affordability on buyer behaviour, with value-conscious purchasers continuing to drive demand, particularly in more accessible segments such as units and townhouses throughout Brisbane.
Source: CoreLogic
Brisbane House Values
Brisbane’s median house value in March was $981,474, up 0.3% from February. This marks a return to growth after stagnation the month prior, reinforcing renewed buyer energy post-interest rate cut. Quarterly growth remained steady at 0.7%, and annual growth now sits at 7.5%.
Compared to other capitals, Brisbane’s house market is holding firm. Melbourne and Sydney recorded weaker annual figures (-2.6% and +0.9%, respectively).
Proptrack also reported a 0.04% gain for houses across Brisbane for the month.
Source: CoreLogic
Brisbane Unit Values
The unit segment continues to outshine houses, with Brisbane’s median unit value reaching $694,577, up 0.7% month-on-month, and a 2.1% increase over the quarter. Annually, unit values have grown 14.1%, underscoring the persistent demand in this segment.
Affordability, limited listings, and increased investor interest are contributing to this growth. Proptrack confirmed a 0.25% monthly rise, validating CoreLogic’s trend data.
Source: CoreLogic
Brisbane’s Rental Market
Rental conditions in Brisbane remain tight. The vacancy rate rose slightly to 1% in February (up from 0.8% in January), yet it remains well below the balanced-market threshold. Gross rental yields are stable at 3.5% for houses and 4.5% for units.
Annual house rent growth has stabilised at 2.9% (up from 2.8% in February), suggesting that house rents are tracking inflation. In contrast, unit rents have seen an uptick, growing at 3.9% annually, up from 3.3% in February. This signals continued pressure in the more affordable rental segments, with demand for unit accommodation remaining high.
Summary
Brisbane’s property market is entering the second quarter of 2025 with firm footing. The Olympic infrastructure announcement adds a wave of certainty and optimism, especially for investors eyeing long-term growth in inner-city and middle-ring suburbs.
Dwelling and unit values continue to climb steadily, outperforming many other capital cities. The bounce-back after Cyclone Alfred and the resilience in buyer confidence, despite affordability and cost of living pressures, highlight the depth of demand in the Brisbane market.
The federal election looms, but unless significant housing policy reforms are introduced, the impact on buyer behaviour is expected to be minimal. Affordability remains a concern, with national dwelling-to-income ratios at record highs and serviceability stretched. Still, not all suburbs are impacted equally, making local market knowledge and expert guidance more valuable than ever.
Interest rate cuts are expected later in the year, though monetary policy will likely remain restrictive through 2025. Consumer sentiment, however, is rising, driven by easing inflation, government cost-of-living support, and growing confidence in a rate-cutting cycle.
Looking ahead, Brisbane remains well positioned for moderate, sustained growth throughout the year. Infrastructure spending, tight supply, and a structurally supported demand base continue to underpin the market. For buyers and investors seeking quality opportunities, the guidance of a trusted and experienced buyers agent has never been more essential.
As we move further into 2025, all signs suggest Brisbane will continue to outperform other locations throughout Australia, driven by solid demand fundamentals, infrastructure stimulus, and a population migration wave that shows no signs of slowing. Whether you’re entering the market as a homebuyer or investor, understanding local nuances and leveraging professional support can make all the difference in securing an exceptional result.
We hope that you have found our Brisbane Property Market Update March 2025 helpful.
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