Brisbane property market update – November 2024

Brisbane’s housing market, buoyed by factors such as continuing buyer demand, employment growth and economic prosperity, remains a leader in Australia’s property landscape.

Compared to Sydney and Melbourne, which have seen declines in dwelling values over the past month, Brisbane recorded a 0.6 per cent increase, bringing its quarterly growth to 1.8 per cent and annual growth to an impressive 12.1 per cent. By contrast, Melbourne’s dwelling values fell by 0.4 per cent, and Sydney experienced a 0.2 per cent decline​.

While Brisbane has firmed up its place as the second most expensive capital city market in Australia based on median house and unit values, Brisbane’s affordability is evident in its price per square metre. While Sydney retains the highest median house prices and price per square metre, when assessed this way Brisbane is more affordable than Melbourne. This is because lot sizes are typically smaller in Melbourne than in Brisbane. Melbourne remains the second most expensive capital based on the median value per square meter for houses, in stark contrast to the rankings when median house values alone are used as the benchmark.

Part of the reason behind the surge in values in Brisbane in recent years was the greater demand for larger homes and bigger blocks, which has increased the value of space, with the price per square metre almost doubling in the past five years.

Sales and listing trends

Sales volumes in Brisbane grew by 6.1 per cent over the past year, supported by consistent buyer demand. Auction clearance rates softened slightly to 58.2 per cent in November, and the number of registered bidders per auction averaged 2.5, a slight decrease compared to October’s 2.7​.

Longer term listing trend in Brisbane highlighted the ongoing supply constraint, with Brisbane still well below the five-year average. New listings in Brisbane were 6.5 per cent higher in November than a year ago, and 1.2 per cent higher than in October, which was a relief for buyers having a few more options to consider. Total listings also rose by 8.5 per cent month-on-month, reflecting a modest accumulation of stock​. This contrasts with cities like Sydney and Melbourne, where higher listing volumes have led to more stagnant or declining prices in recent months.

Rental market affordability

Brisbane’s rental market continues to grapple with affordability challenges. While vacancy rates remain at a tight 1 per cent, rents for both houses and units grew by 3.6 per cent annually in November, marginally slower than the previous month​.

Despite this, Brisbane’s rental affordability has declined significantly over the past four years. In 2020, most inner-city suburbs were considered affordable for a range of household types. Now, dual-income families are often the only ones able to rent in these areas​.

Other capital cities have experienced sharper declines in affordability. For instance, Perth saw a 13 per cent drop in rental affordability over the past year, while Brisbane recorded a smaller 4 per cent decline. The share of income spend on rent in each capital city market shows that Brisbane, along with Melbourne, Adelaide and Hobart, have moderately unaffordable rents, while Sydney and Perth are now considered unaffordable. This trend underscores the widespread pressures on renters across Australia​.

Brisbane dwelling values

Dwelling values in Brisbane rose by 0.6 per cent in November, bringing the quarterly growth to 1.8 per cent. Brisbane’s annual growth of 12.1 per cent far exceeds the combined capitals’ average of 5.4 per cent, cementing its place as a leader in the national property market​ over the last 12 months.

Source: CoreLogic

The breakdown of growth by price segments shows continued demand for Brisbane’s more affordable properties. The highest price increases were recorded in the lower quartile, which is attracting buyers priced out of other markets.​

Brisbane house values

House values in Brisbane increased by 0.6 per cent in November, bringing the median house price to $974,396. Over the past year, house values have risen by 10.2 per cent, supported by sustained demand and limited supply. This growth rate positions Brisbane as the second most expensive capital city market by median house price across Australia.

Source: CoreLogic

Brisbane unit values

Units in Brisbane outperformed houses, with values rising by 0.8 per cent in November and 2.7 per cent over the quarter. Annual unit price growth reached 16.2 per cent, underscoring the appeal of units for first home buyers and investors seeking affordability and higher yields. The median unit price now stands at $677,810.

Source: CoreLogic

Brisbane’s rental market

Vacancy rates in Brisbane fell from 1.1 per cent in October to 1 per cent in November, however, rent growth has been decelerating. House rents and unit rents recorded a further deceleration compared to last month, with annual growth now sitting at 3.6 per cent at the end of November.

Source: CoreLogic

Gross yields for houses dropped slightly month-on-month and are now 3.4 per cent, and for units gross yields remained unchanged at 4.5 per cent.

Forecast and outlook

Looking ahead, Brisbane is forecast to record dwelling price increases of 9 per cent to 14 per cent in 2025, marking its 12th consecutive year of growth. A chronic undersupply of housing, coupled with strong interstate migration and employment growth, is expected to support these gains​.

Source: Boom & Bust Report 2025

Despite the seasonal slowdown expected in December, buyers should be prepared for a competitive market come January. Brisbane’s supply-demand imbalance and underlying fundamentals suggest a strong start to 2025.

Summary

Brisbane’s property market continues to stand out as a strong performer, driven by limited supply, strong demand, and its appeal for local home buyers, interstate migrants and property investors. While national trends point to a cooling market, Brisbane has maintained its positive growth cycle. As we close out 2024, the city’s enduring appeal and solid fundamentals position it well for continued success in the year ahead.

Overall, Brisbane’s real estate market remains well-positioned for continued growth, albeit at a moderated pace, as it navigates evolving economic conditions. This ongoing environment of low supply and sustained demand reinforces Brisbane’s standing as a stable, high-potential market for both long-term investors and home buyers.