Brisbane Olympics slow off starting block but venue clarity set to boost property prices

Brisbane’s troubled start when it comes to deciding where to house its numerous Olympic venues has at last delivered some clarity.

The finalisation of infrastructure projects for the 2032 Brisbane Olympic Games has cemented plans for an inner-city transformation that will help shape the city’s future for years to come.

Brisbane was awarded the Olympics and Paralympics more than 1,300 days ago.

The long-awaited announcements on venues and associated infrastructure are at last set to bring forward significant urban renewal and increased investor interest and instil much-needed economic confidence.

Plans to upgrade the famous but outdated Gabba stadium in Woolloongabba have been ditched in favour of a new 63,000-seat stadium at Victoria Park in the city’s inner north. The Gabba will be demolished after the Games. A 25,000-seat swimming complex will be built in Spring Hill.

The ripple effect on the local property market, especially in Brisbane’s inner and middle-ring suburbs, cannot be underestimated.

The Olympic announcement comes at as the Brisbane property market continues its upward trajectory.

According to CoreLogic, Brisbane’s dwelling values rose by 0.4 per cent in March, a modest re-acceleration from February’s 0.2 per cent increase. Over the quarter, values rose 0.9 per cent, matching February’s quarterly figure and bringing the annual growth to 8.6 per cent.

With headline inflation now at 2.4 per cent, it marks a solid return on investment.

Brisbane outperformed many of its capital city counterparts, including Sydney (0.3 per cent monthly, 0.4 per cent quarterly, 0.9 per cent annually) and Melbourne (0.5 per cent monthly, 0.3 per cent quarterly, -2.6 per cent annually), highlighting the strength of the city’s fundamentals.

Due to strong buyer interest, homes are selling quickly. Median days on market dropped to just 22 days in March, down from 24 days in February signalling a slight uptick in demand and competition.

Cyclone fails to dampen Brisbane real estate

Brisbane’s real estate market showed resilience in the wake of ex-tropical Cyclone Alfred. Contrary to early predictions, the weather event had a negligible impact on property demand, which has remained strong across the housing and unit segments.

Insights from the latest Housing Industry Association (HIA) housing forecasts place Brisbane in a strong but challenging position. Nationally, more homes are being completed than commenced, which points to a looming supply crunch.

This is particularly relevant for Brisbane, where high levels of interstate migration continue to drive demand, yet land availability close to the city remains scarce. The growing mismatch between new completions and starts is expected to tighten supply well into 2026, exacerbating price pressures.

Compounding this issue is the rising cost of new builds. Brisbane’s greenfield house and land packages now average $830,000, up from approximately $500,000 in 2020.

Migration trends further highlight Brisbane’s unique position. While New South Wales and Victoria continue to attract the bulk of overseas migrants, Brisbane leads the nation in net interstate migration.

Lifestyle appeal, relative affordability, and strong employment opportunities make Brisbane particularly attractive, fuelling underlying demand for housing.

At the same time, real wage growth across the country remains subdued, yet consumer sentiment has been on the rise, bolstered by the February interest rate cut.

Improved confidence and a moderate lift in borrowing capacity have reignited buyer activity.

A looming supply shortfall further intensifies the competitive landscape. With the federal government’s 1.2 million home target over five years appearing increasingly unrealistic, the imbalance between demand and supply is expected to persist. This is particularly relevant to Brisbane’s tightly held inner and middle-ring markets.

Finally, high taxation on new homes further reinforces the appeal of established dwellings.

Brisbane buyers face taxes and charges of up to $348,000 on greenfield homes and approximately $256,000 on infill apartments. These additional costs are driving demand toward existing housing stock.

Brisbane dwelling values

In March, Brisbane’s median dwelling value climbed to $899,824, a monthly increase of 0.4 per cent, matching the national average.

This builds on February’s 0.2 per cent rise, suggesting re-acceleration. Quarterly growth remained steady at 0.9 per cent, while annual growth reached 8.6 per cent.

When examining the market by segment, lower quartile properties experienced the strongest quarterly growth at 2.6 per cent, significantly outpacing the upper quartile which recorded just 0.4 per cent.

This trend clearly highlights the ongoing influence of affordability on buyer behaviour, with value-conscious purchasers continuing to drive demand, particularly in more accessible segments such as units and townhouses throughout Brisbane.

Brisbane’s median house value in March was $981,474, up 0.3 per cent from February. This marks a return to growth after stagnation the month prior, reinforcing renewed buyer energy post-interest rate cut. Quarterly growth remained steady at 0.7 per cent, and annual growth now sits at 7.5 per cent.

Compared to other capitals, Brisbane’s house market is holding firm. Melbourne and Sydney recorded weaker annual figures (-2.6 per cent and +0.9 per cent, respectively).

The unit segment continues to outshine houses, with Brisbane’s median unit value reaching $694,577, up 0.7 per cent month-on-month, and a 2.1 per cent increase over the quarter. Annually, unit values have grown 14.1 per cent, underscoring the persistent demand in this segment.

Affordability, limited listings, and increased investor interest are contributing to this growth.

Brisbane’s rental market 

Rental conditions in Brisbane remain tight. The vacancy rate rose slightly to 1 per cent in February (up from 0.8 per cent in January), yet it remains well below the balanced-market threshold. Gross rental yields are stable at 3.5 per cent for houses and 4.5 per cent for units.

Annual house rent growth has stabilised at 2.9 per cent (up from 2.8 per cent in February), suggesting that house rents are tracking inflation.

In contrast, unit rents have seen an uptick, growing at 3.9 per cent annually, up from 3.3 per cent in February.

This signals continued pressure in the more affordable rental segments, with demand for unit accommodation remaining high.

Outlook suggests sustained, steady price growth

Brisbane’s property market is entering the second quarter of 2025 on a firm footing. The Olympic infrastructure announcement adds a wave of certainty and optimism, especially for investors eyeing long-term growth in inner-city and middle-ring suburbs.

Dwelling and unit values continue to climb steadily, outperforming many other capital cities. The bounce-back after Cyclone Alfred and the resilience in buyer confidence, despite affordability and cost of living pressures, highlight the depth of demand in the Brisbane market.

The federal election looms, but unless significant housing policy reforms are introduced, the impact on buyer behaviour is expected to be minimal.

Affordability remains a concern, with national dwelling-to-income ratios at record highs and serviceability stretched. Still, not all suburbs are impacted equally, making local market knowledge and expert guidance more valuable than ever.

Interest rate cuts are expected later in the year, though monetary policy will likely remain restrictive through 2025. Consumer sentiment, however, is rising, driven by easing inflation, government cost-of-living support, and growing confidence in a rate-cutting cycle.

Looking ahead, Brisbane remains well positioned for moderate, sustained growth throughout the year. Infrastructure spending, tight supply, and a structurally supported demand base continue to underpin the market. For buyers and investors seeking quality opportunities, the guidance of a trusted and experienced buyers agent has never been more essential.

As we move further into 2025, all signs suggest Brisbane will continue to outperform most other locations throughout Australia, driven by solid demand fundamentals, infrastructure stimulus, and a population migration wave that shows no signs of slowing.