22 Oct 2024

Brisbane Property Market Trends and Predictions for 2025

So far in 2024, Brisbane’s property market has shown steady growth, with the median house price rising by approximately 9.4% year-to-date. Unit prices have also experienced significant increases as buyer demand remains strong across the market.

But will this growth continue into next year? Experts say yes!

Let’s take a closer look at the property predictions for 2025 and the key factors driving Brisbane’s ongoing market strength.

What Are the Property Predictions for 2025?

Experts are forecasting continued growth for Brisbane’s property market, with house prices expected to rise by 3-5%. Several factors contribute to this optimistic outlook:

Migration

Brisbane continues to attract a large number of interstate migrants, particularly from Sydney and Melbourne. People are relocating due to Brisbane’s affordability and quality of life.

In 2023, 32,255 net interstate migrants moved to Queensland, most of them settling in Brisbane. This influx is expected to continue, putting sustained pressure on the housing market, especially in outer suburbs where homes remain relatively affordable compared to other capital cities.

Infrastructure Developments

Brisbane’s ongoing infrastructure projects are playing a key role in boosting property values. Major developments include:

Cross River Rail: Scheduled for completion in late 2025, this project will improve connectivity across the city, particularly benefiting suburbs like Woolloongabba and Dutton Park. These areas are expected to see significant property price increases as transport accessibility improves.
Brisbane Metro: Set for completion in 2026, Brisbane Metro will enhance public transport across key corridors, benefiting areas like Herston and Eight Mile Plains. Although full completion is still a year away, these transport projects are already driving demand in surrounding suburbs.

Affordability

While Brisbane’s property prices have seen significant growth, it still remains more affordable compared to Sydney. As of September 2024:

The median house price in Brisbane is $937,479.
Sydney’s median house price is $1.34 million, making Brisbane about 30% more affordable.
Melbourne’s median house price is $937,289, putting Brisbane on par or slightly more expensive than Melbourne.

Despite this shift, Brisbane continues to attract buyers and investors from Sydney, where property prices remain significantly higher.

The growing appeal of Brisbane is also driven by its ongoing infrastructure developments and strong rental yields, making it a standout market for investment.

Suburbs to Watch

With Brisbane’s property market set for continued growth, certain suburbs are expected to outperform others.

Here are the key suburbs investors and homebuyers should keep an eye on, with important stats focusing on rental yield and capital growth potential:

Woolloongabba: Positioned to benefit from the Cross River Rail project, Woolloongabba is expected to see both property value and rental demand rise. The rental yield for houses is 3.09%, while units are delivering a strong yield of 5.53%. With a median house price of $1.25 million and annual growth of 3.65%, investors can expect steady appreciation as the suburb becomes increasingly connected to the city.
Coorparoo: Known for its family-friendly vibe and public transport links, Coorparoo has a rental yield of 2.6% for houses and a higher 4.77% for units. With a median house price of $1.65 million and annual growth of 12.62%, this suburb offers a good mix of rental return and capital appreciation.
New Farm: A premium riverside suburb, New Farm remains a favourite for high-end buyers and investors. With a rental yield of 3.96% and a median house price of $2.63 million, the suburb saw annual growth of 11.4%. It’s a reliable option for those targeting luxury rentals and long-term capital growth.
Dutton Park: Another suburb set to benefit from the Cross River Rail, Dutton Park has a rental yield of 4.1% and a median house price of $1.05 million. With excellent transport links and proximity to universities, Dutton Park has experienced solid annual growth and offers great potential for both capital growth and rental returns.
Thornlands: Located 28 km from Brisbane's CBD, Thornlands offers a rental yield of 3.93% for houses. With a median house price of $986,000 and annual growth of 9.65%, this suburb provides strong long-term growth potential, especially for investors seeking suburban living.

Investor Insights: What Tenants Want

With vacancy rates sitting around 1%, demand for rental properties in Brisbane is extremely high. While the tight rental market presents clear opportunities, here are some other key trends shaping what tenants value:

Eco-Friendly Living

Tenants are increasingly drawn to properties with sustainable features such as solar panels, energy-efficient appliances, and water-saving fixtures.

Eco-friendly homes not only help tenants reduce utility costs but also meet the growing demand for environmentally conscious living. For investors, upgrading properties to include these features can make rental offerings more attractive in a competitive market.

Affordability and Location

While affordability remains important, tenants are prioritising properties with convenient access to public transport, schools, shopping centres, and job hubs. Suburbs near major infrastructure projects, such as those linked to the Cross River Rail, are highly desirable as they offer better connectivity.

Locations with proximity to transportation and lifestyle amenities are proving particularly appealing to professionals and young families.

Compact, Well-Connected Units

Smaller, affordable units in well-connected areas are in high demand. Young professionals and students, in particular, prefer units close to the city centre and entertainment precincts.

Investors focusing on units in inner-city suburbs can take advantage of this ongoing trend by offering well-located, compact rental spaces.

Lifestyle-Oriented Suburbs

Tenants are increasingly drawn to suburbs that offer a vibrant lifestyle. Areas like Newstead and Woolloongabba attract renters looking for a mix of culture, dining, and outdoor amenities.

Properties close to parks, cafes, and cultural attractions command higher rental rates and consistent demand, making them ideal for investors targeting lifestyle-driven renters.

Work-from-Home Flexibility

With remote work becoming more common, many tenants now seek homes with dedicated office spaces or flexible layouts that can accommodate home offices.

Properties with extra rooms or adaptable spaces are more attractive to professionals who work from home, reflecting the shift in tenant priorities post-pandemic.

How Aurora Can Help Your Investment Portfolio

With offices in Brisbane and The Bayside, our team covers a large range of suburbs across Brisbane, offering tailored property management solutions to suit your investment needs. At Aurora Property Management, we specialise in helping investors maximise their returns by offering expert guidance and hands-on management services.

Whether you’re interested in high-yield rental suburbs like Woolloongabba or exploring family-friendly areas like Thornlands, our team provides invaluable insights into Brisbane’s dynamic market. Here’s how we can assist:

Maximising Rental Yields: We’ll help you identify the best suburbs for rental demand and ensure your property is marketed to attract high-quality tenants.
Property Maintenance and Management: From handling repairs to ensuring compliance with local regulations, we take care of everything so you can enjoy a hassle-free investment experience.
Tenant Relations: With vacancy rates as low as 1%, we help secure reliable tenants and manage relationships to ensure long-term rental income.

Get in touch with Aurora Realty today to discuss how we can help you take advantage of Brisbane’s thriving property market. Let us handle the details so you can focus on growing your investment portfolio with confidence.