Brisbane’s property market keeps on grinding higher, but we are increasingly starting to see units growing in value.
While the overall level of growth has eased, the city’s fundamentals still show strong demand, limited supply and a solid economy and as a result, Brisbane continues to outperform most of the country.
Data from CoreLogic shows Brisbane’s median dwelling values rose by 0.7 per cent in October, with a quarterly increase of 2.4 per cent and an impressive annual growth rate of 13 per cent. Brisbane’s growth has outpaced larger capitals like Sydney and Melbourne, which is a trend we’ve seen over recent years.
Much of this demand is coming from Queensland’s strong population growth and employment, with population up 2.7 per cent and jobs increasing by 4.6 per cent over the past year. This influx of people has driven consistent demand, particularly within Brisbane’s more affordable areas.
Units leading the charge
While house values in Brisbane rose steadily, it’s the unit market that’s seeing stronger growth. Unit prices increased by 1 per cent in October, bringing the quarterly growth to a 3.5 per cent and a year-on-year rise of 18.8 per cent. The median unit price now sits at $669,254, which, combined with a yield of 4.5 per cent, makes units an attractive option for investors looking for affordability and higher rental returns.
This ongoing demand for units is being driven by affordability pressures, with more buyers shifting to the unit market as house prices climb. Brisbane’s units are particularly appealing to first-home buyers, investors and Brisbane buyers agents drawn to inner-city locations that offer lifestyle benefits alongside strong rental yields.
Supply constraints adding to demand
Brisbane’s limited supply of new listings is another factor supporting price growth. Although new listings in October rose by 1 per cent compared to September, they remain 4.2 per cent lower than the previous year. Annual dwelling commencements are also down by 18.2 per cent from the decade average, which shows the lighter flow of new properties to the market.
Auction clearance rates are also giving us a clearer picture of what’s going on. Brisbane recorded a 60.1 per cent clearance rate in October, with registered bidders averaging 2.7 per auction.
Although bidder numbers are slightly down compared to the previous month, the clearance rate remains high, which suggests there is steady demand even with a slight cooling in buyer interest.
Affordable segments seeing the most growth
Brisbane’s most affordable properties have shown the highest demand and price growth. In the three months to September 2024, the lowest 25 per cent of property values experienced a 4.5 per cent increase. This growth is stronger than the higher end of the market, which saw a slower 2.1 per cent rise in the top 25 per cent of property values.
For many buyers, Brisbane offers better value for money, with larger and higher-quality properties available within a more accessible budget.
Buyers agent Brisbane remain active in South East Queensland and there is still solid demand across most property types in the region.
Looking forward, Brisbane’s property market is well-positioned for more growth into 2025, driven by an ongoing supply-demand imbalance and potential interest rate cuts in early 2025. This combination of factors is likely to keep demand high while supply remains limited.
If you’re looking to enter the market, consider Henderson’s Buyers Agent. We’ll put you on the right track to becoming a home owner in Brisbane’s competitive property market.
