Brisbane residential property is at an all-time high, as one of Australia’s best-performing capital city markets is expected to roll into its third straight year of monthly growth in median house and unit prices, thanks to a strong state economy, massive infrastructure spending and the halo effect of Brisbane being named as host city for the 2032 Summer Olympics. 

With median prices for houses and units peaking at $974,396 and $677,810 respectively, the current 21-month boom looks set to continue, according to the Brisbane Residential Property Market Overview from M3 Property. Units and townhouses are the best performing types of dwellings in the Queensland capital, likely due to the increasing popularity of more affordable townhouses and the added space they offer when compared with units.

Stephen Linnane, Director – Residential Development, QLD at M3 Property, said, “Brisbane’s residential market is strong and there’s no sign of the growth slowing. The strength of the Queensland state economy, along with Brisbane’s economy, as well as the injection of $25 billion in infrastructure spending are making this city even more desirable. Add to that the positive attention Brisbane is receiving as the host city for the 2032 Summer Olympics, and we’re in an enviable position for sustained growth.”

These combined factors are driving record-high growth for house and unit prices across all Local Government Areas (LGAs) in the Brisbane metropolitan region. Ipswich City Council has seen the strongest growth across the region in median house prices, with a rise of 73.61% from January 2020 to August 2024, to reach a peak of $625,000. Unit prices grew the most in the Logan City Council area, rising by 81.42% during the same period, and peaking at $410,000.

All five LGAs experienced strong growth from January 2020 to August 2024, including:

• in Brisbane City median house prices grew 63.89% to $1,126,750, and unit prices grew 40.96% to $585,000,
• in Ipswich City median unit prices grew 62.76% to $415,000,
• in Logan City median house prices grew 61.63% to $695,000, 
• in Redland City median house prices grew 59.62%to $850,000, and unit prices grew 65.71% to $580,000, and
• in the City of Moreton Bay median house prices grew 65.69% to $770,000, and unit prices grew 55.56% to $490,000

The number one reason for this resilient market is the strong performance of the Queensland economy. The Gross State Product of Queensland in FY24 was $510.69 billion, an increase of 2.1% (~$5.46 bn) on FY23, or about 50% higher than the average GSP growth for all states and territories. The Brisbane regional economy also grew by 2.7% in FY23.

These strong figures are contributing to a lift in migration to Queensland with 406,147 new residents added to the state’s population in the four years to March 2024, as Australians and migrants look to Brisbane and South-East Queensland for economic opportunities, resulting in increased demand from new buyers entering the market in the region. 

Combined with reduced approvals for new dwelling constructions (35,169 approvals for the 12 months to September 2024 compared with a peak of 41,000 in FY21), this is creating exceptionally tight vacancy rates across Brisbane. In September 2024, rental vacancies were at 1.1%, putting upwards pressure on median weekly rental prices. For example, November 2024 saw price increases of 2.83% to $755 per week for houses, and 5.38% to $578 per week for units.

“We’re seeing an undersupply of new residential stock in Brisbane, and that’s a big contributor to the seller’s market we’re in right now,” said Mr Linnane.

“For example, new listings in September of this year were 8,088, and up slightly on the 7,450 new listings for September 2023, but we’re still short of our historical average of about 8,500 new monthly listings. We have a substantial lack of supply and that’s adding to the growth rates we’re seeing across Brisbane.”

Recent infrastructure spending in Brisbane from federal, state and local governments has also fed this pattern of non-stop growth. Queensland’s biggest infrastructure project, the Cross River Rail, is nearing completion in 2025 with safety testing to follow. This region-shaping work has created about 7,000 construction jobs and comes with a $5.4 billion price tag.

A string of other major projects is also about to open to the public, like the Brisbane Metro high-frequency bus rapid transit system ($1.55bn) commencing services in January 2025, and five new green bridges ($550mn) across the Brisbane River, with the first of those opening in December 2024 at Kangaroo Point. These generational projects will continue to increase the attractiveness of Brisbane for homeowners and investors as the city becomes more accessible for residents.

Although not a major contributor to the ongoing strength of the Brisbane residential market, the reputational factors associated with hosting the 2032 Summer Olympics are expected to contribute to a lift in property prices across the region, especially for suburbs surrounding the Games venues.

For example, the correlation between the 2000 Summer Olympics in Sydney and that city’s residential market growth was significant. Between September 1993 and September 2000, Sydney dwelling values increased by 60%, or almost twice the growth of the combined capital city markets during this period. A similar effect is likely in Brisbane over the coming years, thanks to the infrastructure development to enable the Games, and the international exposure afforded to the city.

“While this high-growth market is creating significant affordability challenges in Brisbane, we’re still seen as relatively affordable when compared with cities like Sydney and Melbourne,” said Mr Linnane.

“With the addition of modern, innovative infrastructure like Cross City Rail, the new green bridges and even the forthcoming Brisbane Live Arena, we see the city retaining, and strengthening, many of the natural advantages that make it an attractive destination for homeowners and investors from around Australia and overseas.”