Melinda Jennison
Introduction
In a landmark moment for Queensland’s capital, Brisbane has officially joined an exclusive club of property markets. According to Cotality (formerly CoreLogic), Brisbane’s median house price has now surpassed the $1 million threshold for the first time in history, reaching $1,000,422, while median unit values have exceeded $700,000, hitting $709,823. This solidifies Brisbane’s position as the second most expensive capital city market in Australia, based on median values, trailing only Sydney.
Over the past month, Brisbane’s property market has continued to steadily climb. Median dwelling values rose by 0.6% in May, continuing the positive trend from April’s 0.4% rise. In fact, Brisbane is now one of only three capital cities across Australia to have maintained record-high dwelling values for several months, alongside Perth and Adelaide. Other markets such as Sydney, Melbourne, Hobart, Darwin, and Canberra remain below their previous peaks.
Brisbane’s housing market continues to be driven by relatively strong demand, particularly in the unit sector, which again outpaced houses in terms of price growth. Median unit values increased by 1.1% in May, compared to 0.5% for houses. Quarterly growth for units also leads at 2.4%, while houses have risen 1.5% over the same period.
Interestingly, the most affordable segment of Brisbane’s market is leading the charge. Properties in the lowest 25th percentile have continued to post stronger quarterly growth rates than their more expensive counterparts. This reflects increased buyer interest among first-home buyers and investo$rs, many of whom are targeting entry-level opportunities amidst broader affordability constraints.
Days on market have also decreased, dropping from 24 days in April to just 22 days in May. This reinforces the ongoing buyer urgency and competition for quality listings.
Adding to the renewed market momentum is a noticeable rebound in buyer confidence. The Westpac-Melbourne Institute consumer sentiment index shows a 5.1% increase in the ‘Time to Buy a Dwelling’ measure, climbing from 85.6 in April to 90 in May. While still in negative territory, this is the second-closest the index has been to neutral since 2021.
ABS Building Approvals data also points to improving, though still insufficient, new housing supply across Australia as a whole. Total dwelling approvals fell -8.8% over the month but are up 13.4% annually. House approvals declined -4.2% monthly and -3.1% annually, while approvals for other dwellings (including townhouses and units) jumped 49.7% over the year. While encouraging, current volumes remain well below what’s required to meet Housing Accord targets.
Investor Sentiment
According to the API Property Sentiment Report Q1 2025, investors remain cautiously optimistic, particularly in Queensland and Brisbane. The report shows that Queensland continues to attract strong interest from investors, with Brisbane highlighted as one of the most popular investment destinations nationally. 32% of investors identified Brisbane as the location where they are most likely to buy in 2025, second only to Perth.
Despite tighter rental conditions and rising purchase prices, the fundamentals of low vacancy rates, steady rental yields, and long-term capital growth remain attractive to investors. Investor confidence has been buoyed by interest rate stability and the expectation of further cuts in the coming months, which would enhance borrowing power and overall returns.
Brisbane Dwelling Values
In May, Brisbane’s median dwelling value rose 0.6%, accelerating from April’s 0.4% monthly increase. The quarterly increase now stands at 1.6%, with annual growth of 6.2%. The 10-year growth trajectory has reached 91.6%, and values have risen 73.6% over the past five years.
Source: Cotality (formerly CoreLogic)
Compared to other capitals, Brisbane’s current momentum remains strong. While Sydney and Melbourne posted slower monthly growth, Brisbane continues to be among the top performers, particularly in the attached dwelling sector. According to Proptrack, Brisbane dwelling values grew 0.24% in May, a modest uptick from the 0.19% gain reported in April.
Source: Cotality (formerly CoreLogic)
Brisbane House Values
House values in Brisbane, according to Cotality, reached a median of $1,000,422 in May 2025. This marks a 0.5% increase over the month, up from 0.4% in April. Quarterly growth now sits at 1.5%, and annual growth at 6.2%, slightly down from the 6.8% reported in April.
Cotality data confirms that growth in the housing sector is reaccelerating after plateauing earlier in the year. Proptrack also observed a 0.25% increase in Brisbane house values for May, a slight improvement on the 0.21% seen in April.
Source: Cotality (formerly CoreLogic)
Brisbane Unit Values
Brisbane’s unit market remains the standout performer. Median values increased 1.1% in May to $709,823, accelerating from 0.5% in April. Quarterly growth stands at 2.4%, with a year-on-year increase of 11.8%. This segment continues to outperform houses in both price growth and buyer demand.
Proptrack reported 0.18% monthly growth in Brisbane unit values in May, which aligns with the broader trend of moderate but steady gains. The affordability gap between houses and units is clearly pushing more buyers towards this segment, especially those seeking proximity to the CBD without the premium price tag.
Source: Cotality (formerly CoreLogic)
Brisbane’s Rental Market
Brisbane’s rental market remains exceptionally tight. Vacancy rates held steady at 1.0% in May, unchanged from April, confirming ongoing supply shortages.
Rents have reaccelerated in both the house and unit segments. Annual growth in house rents rose to 3.2% in May, up from 3.0% in April. Unit rents increased 4.5% year-on-year, up from 4.3% in April, driven by strong demand and limited availability.
Gross rental yields have remained steady for houses at 3.5%, while unit yields edged down slightly to 4.5% from 4.6% last month, reflecting rising prices in the face of tight rental conditions.
Source: Cotality (formerly CoreLogic)
Summary
May 2025 has proven to be a milestone month for Brisbane’s property market. Both house and unit prices reached record medians, with Brisbane now the second most expensive capital in the nation. Buyer confidence is rebounding, helped by expectations of further interest rate cuts, political stability following the federal election, and encouraging signs of economic resilience.
Listings remain low, but buyer depth is strong, especially for quality properties, many of which are selling quickly and attracting multiple offers. Conversely, properties with detracting features are facing more scrutiny as buyers become more selective.
As inflation settles within the RBA’s target band and monetary policy becomes more supportive, continued moderate price growth appears likely for the remainder of 2025. Brisbane’s relative affordability, lifestyle appeal, and strong fundamentals position it well to continue outperforming many of its interstate counterparts.
We hope that you have found our Brisbane Property Market Update May 2025 helpful.
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