Brisbane’s economy is gaining momentum, driven by recent interest rate cuts and a surge in population growth, both which are boosting housing demand, consumer spending, and overall market confidence
A lower number of listings across Brisbane are resulting in less sales being transacted with many potential homebuyers delaying their purchase with further rate cuts anticipated in the second half of the year
Winter/25
Brisbane Residential
While sales have slowed, property prices continue to show resilience, supported by tight housing supply, rising buyer confidence and strong expectations of future growth in property values
Tenants are likely to be faced with ongoing challenging rental conditions, with demand still outpacing supply Upward pressure on rents is likely to persist, impacting many household budgets
The Economy Key Drivers
Interest Rate
3.85%
The Reserve Bank of Australia (RBA) lowered the interest rate target 25 bps to 3 85% in May 2025 Many banks followed this direction and adjusted their mortgage lending rates accordingly. Interest rates significantly influence the cost of borrowing money, which in turn affects the willingness and ability to apply for a home loan. The RBA forecasts the target could be 3 40% by the end of 2025, and 3 20% in 2026 When interest rates are lowered, borrowing becomes cheaper, which can stimulate demand for residential property and drive economic growth
Unemployment Rate
4.3%
Employment levels influence people’s ability to initially purchase a home and then the ongoing mortgage repayments servicing the loan The unemployment rate in Australia was 4 3% in March 2025, which is considered a healthy, balanced labour market given the rate falls within the ideal range of 4% to 5% The RBA forecasts the unemployment rate to rise by the end of 2025 to 4.3%, then remain relatively steady in 2026
Economic Growth 1.3%
Economic growth remains a key driver because it fuels job creation, boosts incomes, and increases demand across property markets Australia recorded economic growth at 1.3% in 2024, following stronger performance of 3.1% in 2022 and 1 5% in 2023 Looking forward, the RBA forecasts economic growth to lift to 2.1% in 2025 and 2.2% in 2026. Ideally, sustainable economic growth is considered to be around 2% to 3%
Population Growth
2.7%
Population growth increases housing demand as more people require places to live, putting pressure on existing housing supply and infrastructure. The Brisbane annual population growth slowed to 2 3% in June 2022 as a consequence of slower migration throughout the pandemic, then rebounded to 3 1% in 2023, to record 2 7% growth in 2024 The ABS have projected the long term population growth for Brisbane at 1.4%.
Source: McGrath Research, RBA, ABS
Sales -29%
Total Number of Sales Brisbane
There were 11,927 residential sale transactions in Brisbane in the first quarter of 2025, a downward movement of 29% from the previous quarter Over the past year, the total number was 4% lower, reaching 64,848 sales. This was influenced by the total number of listings being 3 2% higher in the four weeks ending March 2025 when compared to the equivalent period last year. Other factors include the tighter lending environment with fewer people qualifying for loans and market anticipating a further reduction in interest rates by the end of the year.
Auctions
Across Brisbane, 173 property auctions were held in the week ending 30 March 2025 According to CoreLogic, 52 9% of the homes were sold under the hammer. This was higher than one quarter ago at 51 0%, when 198 auctions were held By comparison, the same quarter last year saw 60 6% sold, from 95 auctions. Clearance rates above 70% suggest strong demand and a seller’s market, while a rate below 60% indicates weaker demand and a buyer’s market
52.9%
Auction Clearance Rate
Brisbane
Source: McGrath Research, APM
Source: McGrath Research APM
Source: McGrath Research, CoreLogic
Residential Sales Update
Duration 46 days
Brisbane homes took an average 46 days on market - from the time they were listed to the day they went under contract - in the March 2025 quarter This duration was 41 days the quarter before and 44 days one year ago Historically, houses have sold faster than apartments and this was no different in the past quarter Houses averaged 46 days to sell in Q1 2025, which was 4 days longer than in Q4 2024 but the same as Q1 2024 Apartments took an average 45 days to sell, being 7 days longer than the previous quarter and 7 days more than a year ago A low number of days on market mean homes are selling fast with more desirable properties, while a high number of days suggests a slower market with above market values
Average Days on the Market
Source: McGrath Research, APM
New Listings
Newly advertised property listings in Brisbane were 10 9% lower in the month of March 2025 than the equivalent period last year. This trended above the Australian average of 4 5%
Brisbane’s total number of listings in the month of March 2025 were 3 2% above the equivalent period last year By comparison, total listings were 5.1% higher across Australia.
Source: McGrath Research, CoreLogic
Source: McGrath Research, APM
Residential Prices Update
Median Price
$926,500
Providing a benchmark for market performance, tracking median property prices helps identify emerging trends Residential property prices across Brisbane rose by 10 0% in the year to March 2025, with a 0.1% increase recorded in the most recent quarter This brought the median value to $926,500, reflecting a steady upward trajectory in housing demand and resilience in the market. Median house prices, at $1,022,000, are now growing slower than apartments, which are now at a median of $657,500 in Q1 2025 House prices were 0 3% lower than a quarter ago but still 8 7% higher over the year. Over the same quarter, apartments rose by 2 0% and 16 2% in the past year
Change in Median Prices
Brisbane
Source: McGrath Research, APM
Price Outlook
+7%
Looking ahead, McGrath Research anticipates residential property prices to increase by 7% by the end of 2025, followed by a stronger 8% rise in 2026 after two years of significant price growth These projections reflect ongoing demand from limited housing supply and consumer confidence and recent lowered mortgage interest rates
Forecast for Median Prices
Brisbane
Source: McGrath Research, APM
Source: McGrath Research
Residential Rents Update
Rental vacancy can have a significant impact on the residential property market, influencing both rental prices and property values. Brisbane residential rental vacancy was recorded at 0 9% in Q1 2025, falling 20 bps in the quarter but overall, 6 bps lower over the past year Generally, 3% vacancy is considered a balanced market between rental supply and demand Below this benchmark is considered to be an undersupplied pool of rental homes
Change in Residential Rental Vacancy
Brisbane
Source: McGrath Research REINSW
Yield
+5 bps
Brisbane residential gross rental yields rose 5 bps in the Q1 2025 quarter to be 4 10%, while this was 28 bps less than a year ago Apartment yields (4 89%) consistently outperform house yields (3 82%) across most markets House yields rose 3 bps in Q1 2025 but compressed by 19 bps over the past year, while apartment yields were 9 bps higher in this past quarter but were 54 bps lower than a year ago Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted A range of 4 00% to 5 00% is considered good for many properties located in a capital city, while below this, may indicate high property prices relative to rent, or low rental demand
Change in Gross Rental Yield
Brisbane
Source: McGrath Research APM
Source: McGrath Research, APM
Residential Rents
Median Weekly Rent $640
Significantly low vacancy and elevated migration are keeping rents on an upward trajectory in Brisbane. Residential rents rose 1 6% in Q1 2025, while rents increased by 4 9% over the past year, to stand at $640 per week
Median weekly house rents were $35 higher than apartments, growing by 1 6% in Q1 2025 to $650 per week, with 4 8% growth over the past year Apartment weekly rents, at $615, rose 2 5% in Q1 2025 and in the past year by 4 2%
Change in Median Weekly Rents
Brisbane
Rental Outlook +5%
While Brisbane continues to experience solid population growth, tight rental supply and delayed new housing completions, McGrath Research forecast sustained upward pressure on rents of 5% at the end of 2025, with a further 4% rental growth likely in 2026
Forecast for Median Rents
Brisbane
Source: McGrath Research,
Source: McGrath Research
Source: McGrath Research APM
Brisbane
Brisbane refers to the Greater Capital City Statistical Area or ‘Greater Brisbane’ as defined by the Australian Bureau of Statistics
