Brisbane heads into 2026 with momentum still firmly on its side

Brisbane closed out 2025 as one of Australia’s most resilient property markets, maintaining powerful momentum even as conditions began to cool into the Christmas break.

Dwelling values rose 1.6 per cent over the past month, lifting quarterly growth to 5.6 per cent and pushing annual growth to 14.5 per cent.

That performance keeps Brisbane firmly among the nation’s strongest capital city markets, second only to Perth, which recorded annual growth of 18.9 per cent and quarterly growth of 7.6 per cent.

The strength of Brisbane’s result is thrown into sharper relief when compared with the east coast’s largest markets. Sydney and Melbourne both recorded monthly declines of 0.1 per cent, underscoring the widening gap between cities constrained by affordability pressures and those, like Brisbane, where supply remains structurally tight.

Nationally, the combined capital cities recorded a 0.5 per cent lift for the month and 2.7 per cent over the quarter, while dwelling values across Australia rose 0.7 per cent in December. Brisbane’s growth continues to run well ahead of these broader benchmarks, reinforcing its position as a standout performer heading into 2026.

One of the defining features of Australia’s housing market through 2025 has been the outsized performance of lower-priced housing. Cotality analysis shows the strongest gains have been concentrated in more affordable segments, with the lower quartile outperforming higher-value properties on a year-to-date basis.

Brisbane reflects that national pattern, but with an important twist: the gap between price segments is narrowing. Rather than growth being confined to the cheapest homes, momentum is now spreading more evenly across the market.

Over the three months to November, Brisbane’s lowest-priced 25 per cent of dwellings rose 6.6 per cent. The middle 50 per cent lifted 5.9 per cent, while the highest-priced quartile increased 4.7 per cent. While the lower end continues to lead, the acceleration in middle and upper segments points to a market that is broadening rather than overheating in one corner.

This shift toward more balanced growth reinforces the view that Brisbane’s upswing is being driven by depth of demand rather than speculative surges, which shapes as a key factor as the city moves into the next phase of the cycle.

On the ground, December buyer activity typically brings a familiar rhythm.

Engagement and urgency remain strong through the first couple of weeks, then taper as households shift into end-of-year commitments and travel. That was the pattern again this year.

Importantly, the slowing in activity did not translate into a meaningful easing of prices, because Brisbane’s bigger story remains supply.

Locally, new listings in Brisbane were down 9.2 per cent over the four weeks to 30 November compared with the equivalent period last year.

Less new stock entering the market keeps competition elevated for well-located, low-risk properties, particularly those that meet buyers’ non-negotiables around flood exposure, major road noise, flight paths and functional liveability.

Cotality’s Best of the Best 2025 report provides a helpful snapshot of where suburb-level performance has been strongest across Greater Brisbane over the past 12 months.

Based on this report, the suburbs showing the highest 12-month change in house values were led by Brisbane City (up 25.0 per cent), followed by Samford Village (22.8 per cent), Chermside (22.1 per cent) and Macgregor (20.7 per cent). For units, the highest growth was recorded in Hillcrest (30.5 per cent), followed by Goodna (29.9 per cent), Caboolture (25.2 per cent) and Newmarket (21.6 per cent). 

For rental growth, the highest 12-month change in house rents was in Mackenzie (up 2.9 per cent), followed by Bardon (11.8 per cent), Upper Mount Gravatt (11.6 per cent), and Cannon Hill (11.4 per cent). Unit rents increased most in Slacks Creek (13.4 per cent), followed by Underwood (13.3 per cent), Strathpine (12.5 per cent) and Kingston (12.3 per cent). 

It’s important to treat suburb “top 10” rankings like these as indicative, not definitive. Suburb-level figures are often based on median results, which can move around if a different mix of properties sell or rent (for example, more renovated homes in one period, or smaller/older homes in another).

When sales volumes are low, and the rental market is tight, even a handful of transactions can shift the “middle” price materially, so these rankings are best treated as a signal to investigate further, rather than proof of a guaranteed trend.

Brisbane dwelling values exploding

Brisbane’s median dwelling value finished December at $1,036,323, after a 1.6 per cent rise for the month.

The previous month (November) saw stronger monthly growth of 1.9 per cent and a median dwelling value of $1,015,767, confirming that the pace of monthly appreciation eased slightly into year-end, while the overall price level continued higher.

On a quarterly basis, Brisbane’s dwelling values rose 5.6 per cent through the past three months, well ahead of the combined capitals (2.7 per cent) and the national measure (2.9 per cent).

On an annual basis, Brisbane’s 14.5 per cent result remains one of the strongest among the capitals.

Cotality also shows Brisbane “at peak” and up 86.7 per cent over the past five years.  This is an extraordinary medium-term run that continues to shape affordability and buyer expectations.

Houses remain a strong driver of buyer competition in Brisbane. In December, the median house value rose to $1,131,329, with monthly growth of 1.5 per cent, quarterly growth of 5.4 per cent, and annual growth of 14.0 per cent.

By comparison, November’s median house value was $1,111,431, following a stronger 1.8 per cent monthly rise, a 5.3 per cent quarterly increase and 12.2 per cent annual growth.

The takeaway is that month-to-month price acceleration has softened slightly, but the annual trend has lifted. This reflects how consistently strong results have been layered through 2025.

Against other capitals, Brisbane’s annual performance for houses sits in the top tier, behind Perth (19.9 per cent) and ahead of Adelaide (15.7 per cent) and Sydney (6.9 per cent).

This continuing differential is consistent with Brisbane’s supply-demand mix and relative affordability (despite meaningful price growth).

Brisbane’s unit market continued to record firm gains. In December, the median unit value increased to $807,161, rising 1.8 per cent for the month, 5.4 per cent over the quarter and 16.9 per cent over the year.

In November, the median unit value was $792,896, after a 2.2 per cent monthly gain, 6.3 per cent quarterly growth and 15.8 per cent annual growth.

The pattern mirrors houses, in that monthly and quarterly rates have eased a touch, while the annual increase remains strong.

Brisbane rents continue to climb

Brisbane’s rental market remains tight, and historically low vacancy is still doing much of the work in supporting rent levels. The latest vacancy rate for Greater Brisbane is 1.0 per cent, which is still extremely low in historical context.

Annual rent growth in December was 6.2 per cent for houses (up slightly from November’s 6.0 per cent) and 6.6 per cent for units (down from November’s 6.9 per cent).

The emerging trend here is subtle but worth watching. Unit rent growth appears to be cooling marginally, while house rent growth has inched higher. This possibly reflects household preferences for space and family-friendly layouts, and the ongoing scarcity of well-located rentals suitable for owner-occupier style tenants.

From an investor perspective, gross yields in Greater Brisbane were reported at 3.2 per cent for houses (down 0.1 per cent month-on-month) and 4.1 per cent for units (unchanged).

The investor share of finance is also lifting, which aligns with broader national commentary about increased investor participation.

In Queensland, investors comprised 41.1 per cent of home finance in December, up from 38.3 per cent in November.

Momentum intact into 2026

Brisbane heads into 2026 with a market profile that remains firmly supportive of further price growth, underpinned by strong annual gains, broadening momentum across price segments, chronically low supply and some of the tightest rental conditions in the country.

While December recorded a modest easing in monthly growth from November, the quarterly and annual trends remain robust, with Brisbane continuing to outperform most other capital cities across key measures.

There are, however, emerging headwinds. Shifting inflation expectations have reintroduced uncertainty around the interest-rate outlook, while consumer confidence weakened in December, with sentiment falling 9 per cent and the “time to buy a dwelling” index also sliding.

Affordability and mortgage serviceability pressures will continue to limit some buyer budgets, pushing a greater share of demand toward smaller homes, attached dwellings and more affordable outer-ring locations.

Even so, Brisbane’s underlying supply-demand imbalance remains difficult to ignore. New listings are tracking below last year’s levels, and when stock stays tight while buyer interest remains elevated, price pressure typically builds, particularly in suburbs and segments offering perceived stability and strong long-term fundamentals.

In that context, Brisbane’s late-year slowdown looks more seasonal than structural. The market has cooled in the way high-performing markets often do in December, through fewer active participants, not weaker demand.

With listings constrained, rents still rising and buyer competition holding firm, the foundations remain in place for values to keep edging higher through 2026, with the pace of growth shaped by confidence, borrowing capacity and the evolving interest-rate narrative.