Brisbane Property Market Forecast 2025: Growth Trends and Investment Opportunities
After missing the post-GFC property price rises experienced by the southern states for the better part of 10 years, the Brisbane property market forecast for 2025 shows continued momentum, following the strongest property market growth of any Australian capital city, with 64% growth since the onset of COVID-19.
Expert Market Analysis
Watch as Property Market Expert Dominic Cavagnino from Binnari Property explains Brisbane’s property market forecast for 2025, including the impact of major infrastructure projects, growth suburbs, and emerging investment opportunities.
Key Drivers of Brisbane's Property Market Growth in 2025
There are several factors contributing to Brisbane’s property market forecast for 2025. The highly restrictive COVID restrictions imposed in NSW and Victoria led to an exodus of people to South East Queensland. Brisbane property prices have historically been more affordable for similar properties when compared to Sydney and Melbourne. Historically, the price differential has been as much as 50% less than the southern capitals. When the Brisbane market has been strong, the gap has closed to around 75% to 80%. Currently sitting at around 65% less, experts predict further price growth potential in the Brisbane property market throughout 2025.
Interstate Migration Impact on Brisbane Property Prices
Where interstate migrants from the south have the upper hand is when they are cashed up from the sale of their home and are willing and able to pay more for a property than local buyers. This has pushed Brisbane property prices higher but they are still more affordable than Sydney even after the past nearly 5 years of strong growth simply because Sydney prices have been growing too. The affordability factor continues to drive interstate migration, particularly from southern states where property prices remain significantly higher.
Infrastructure Development Driving Brisbane's Property Market
Major infrastructure projects are significantly influencing the 2025 Brisbane property market forecast, including:
– Brisbane Metro with multiple sites across the city
– Adelaide Street tunnel
– New Kangaroo Point Bridge
– Victoria Bridge upgrade and public space upgrades in North Quay
– And the list continues to grow
These projects have resulted in a strong employment market with the wage gap between Sydney and Brisbane now less than it has ever been. The disparity between incomes between Brisbane and Sydney has closed in recent years to be just under 10%. That means the incomes of Brisbane residents is not far off parity with Sydney residents. When you take into account the jobs required for the various infrastructure projects taking place, jobs like engineers and project managers, the actual incomes available to them are higher than what they are in Sydney.
The strong employment market will remain for the foreseeable future due to the current infrastructure works underway and more to come with Olympics set to take place in 2032. This continued infrastructure development is expected to maintain the momentum in both employment opportunities and property market growth.
Top Performing Brisbane Property Types for 2025
Houses in Established Suburbs
The Brisbane property market forecast for 2025 particularly favours detached homes, as families and professionals relocating from the south seek more space and a better lifestyle at affordable prices. Premium suburbs showing strong potential include:
– Ashgrove and Red Hill – predicted to maintain exceptional performance due to land scarcity and prime inner-city locations
– Chapel Hill and Indooroopilly – set to deliver strong capital growth thanks to excellent school zones and abundant green spaces
These established inner suburbs have performed exceptionally well and will continue to do so due to their inherent advantages and limited supply of available land.
Townhouse Investment Opportunities
There has been a shift towards medium density living in recent times, and that has seen the emergence of a greater number of townhouses being developed. Townhouses provide a lower price point for investors compared to a free-standing house and more room than an apartment. With opportunities to buy townhouses under $1m in middle-ring suburbs, these properties will provide relatively good value and the opportunity for growth in 2025 and indeed for the remainder of this decade.
Key opportunities include:
– Properties under $1m in middle-ring suburbs, offering better value compared to free-standing houses
– New three-bedroom townhouses within easy access to transport, schools, and retail hubs
– Developments in South Brisbane and similar inner-city areas undergoing transformation with new infrastructure and urban renewal projects
Areas with strong rental demand predicted from professionals working in the CBD and in nearby hospitals
Apartment Market Outlook
For the 2025 Brisbane property market, select apartments show promise, specifically those with strong owner-occupied appeal. This factor will be crucial for capital growth in 2025, and in most cases rules out high-rise apartments. The apartment styles that will see capital growth include:
– Boutique developments with fewer than 50 units
– Spacious layouts with secure parking that appeal to long-term residents
– Properties in areas with strong local amenity that enhances lifestyle
– Buildings that attract a high proportion of owner-occupiers rather than investors
Investment Returns and Rental Market
The Brisbane rental market, like the rest of Australia, has been characterised by low vacancy rates in recent years. With positive migration expected to continue into the foreseeable future, rental yields for investors will remain solid in 2025 and beyond. Keep in mind that price growth is only one goal of a property investor – they also want to see solid rental returns as well, and Brisbane’s rental market conditions support both objectives.
The combination of continued interstate migration, strong employment prospects, ongoing infrastructure development, and relative affordability compared to southern capitals positions Brisbane’s property market for sustained growth through 2025 and beyond.
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The content of this blog reflects the personal views of the author and is for information purposes only. It does not constitute financial, investment or professional advice. Readers should conduct their own research and consult a qualified financial or property adviser before making any decisions to invest in property. The author and the blog are not responsible for any actions taken based on the content.
