Brisbane’s property market is showing signs of coming off the boil after an “exceptional run” over the past five years.
The Savill’s Research latest residential housing overview said Brisbane’s unit price increases now matched Sydney’s at 92 percent since 2009.
“Following a period of exceptional growth, Brisbane’s housing market is showing early signs of transitioning into a more mature phase,” the report said.
“As some parts of the market approach Sydney-level pricing, affordability pressures are likely to temper the pace of growth.”
Unit price increases are continuing to outperform houses, with seven percent growth forecast in the year to June 2027.
“The (Sydney-Brisbane) price gap is also narrowing, with less than $15,000 now separating the median sales value of apartments in Sydney and Brisbane, at $898,000 and $885,000 respectively,” the report said.
“While Brisbane apartment growth is beginning to ease, the city remains on track to overtake Sydney and become Australia’s second most expensive apartment market within months.”
The Gold Coast has already moved ahead of Sydney, supported by strong interstate migration, downsizer demand and a wave of prestige apartment development.
“Brisbane has benefited from population growth, relative affordability, and first home buyer and investor demand,” the report said.
“The 2032 Olympic Games have added further momentum, providing a long-term investment roadmap, supporting infrastructure investment and population growth expectations, and reinforcing confidence in Brisbane’s fundamentals.”
Nationallly, price growth continued to lose momentum, with Cotality reporting a 0.4 percent fall in June – the third consecutive monthly decline.
Values in Melbourne, Sydney and Canberra are now lower than at the start of the year.
“A buyers’ market has emerged, with auction clearance rates well below 50 percent indicating a misalignment on pricing expectations between buyers and sellers,” the report said.
“Buyer activity has become more cautious as higher interest rates, reduced borrowing capacity and tax policy uncertainty weigh on purchasing decisions.”
Larger, higher-value homes were bearing the brunt of recent price falls in Sydney and Melbourne.
Brisbane is also seeing greater resilience at the more affordable end of the market, although unlike Sydney and Melbourne, overall price growth remains positive.
