In Brisbane, $1 million now won’t even buy you the average house

In a landmark moment for Queensland’s capital, Brisbane has officially joined an exclusive club of property markets.

According to Cotality (formerly CoreLogic), Brisbane’s median house price has now surpassed the $1 million threshold for the first time in history, reaching $1,000,422, while median unit values have exceeded $700,000, hitting $709,823. This solidifies Brisbane’s position as the second most expensive capital city market in Australia, based on median values, trailing only Sydney.

Over the past month, Brisbane’s property market has continued to steadily climb.

Median dwelling values rose by 0.6 per cent in May, continuing the positive trend from April’s 0.4 per cent rise.

Brisbane is now one of only three capital cities across Australia to have maintained record-high dwelling values for several months, alongside Perth and Adelaide. Other markets such as Sydney, Melbourne, Hobart, Darwin, and Canberra remain below their previous peaks.

Brisbane’s housing market continues to be driven by relatively strong demand, particularly in the unit sector, which again outpaced houses in terms of price growth.

Median unit values increased by 1.1 per cent in May, compared to 0.5 per cent for houses. Quarterly growth for units also leads at 2.4 per cent, while houses have risen 1.5 per cent over the same period.

Interestingly, the most affordable segment of Brisbane’s market is leading the charge.

Properties in the lowest 25th percentile have continued to post stronger quarterly growth rates than their more expensive counterparts. This reflects increased buyer interest among first-home buyers and investors, many of whom are targeting entry-level opportunities amid broader affordability constraints.

Days on market have also decreased, dropping from 24 days in April to just 22 days in May. This reinforces the ongoing buyer urgency and competition for quality listings.

Adding to the renewed market momentum is a noticeable rebound in buyer confidence.

The Westpac-Melbourne Institute consumer sentiment index shows a 5.1 per cent increase in the Time to Buy a Dwelling measure, climbing from 85.6 in April to 90 in May. While still in negative territory, this is the second closest the index has been to neutral since 2021.

ABS building approvals data also points to improving, though still insufficient, new housing supply across Australia as a whole.

Total dwelling approvals fell 8.8 per cent over the month but are up 13.4 per cent annually. House approvals declined 4.2 per cent monthly and fell 3.1 per cent annually, while approvals for other dwellings (including townhouses and units) jumped 49.7 per cent over the year. While encouraging, current volumes remain well below what’s required to meet Housing Accord targets.

Investor sentiment

According to the API Property Sentiment Report Q1 2025, investors remain cautiously optimistic, particularly in Queensland and Brisbane. The report shows that Queensland continues to attract strong interest from investors, with Brisbane highlighted as one of the most popular investment destinations nationally. This was reinforced by 32 per cent of investors identifying Brisbane as the location are most likely to buy in 2025, second only to Perth.

Despite tighter rental conditions and rising purchase prices, the fundamentals of low vacancy rates, steady rental yields, and long-term capital growth remain attractive to investors.

Investor confidence has been buoyed by interest rate stability and the expectation of further cuts in the coming months, which would enhance borrowing power and overall returns.

Brisbane dwelling values

In May, Brisbane’s median dwelling value rose 0.6 per cent, accelerating from April’s 0.4 per cent monthly increase. The quarterly increase now stands at 1.6 per cent, with annual growth of 6.2 per cent.

The 10-year growth trajectory has reached 91.6 per cent, and values have risen 73.6 per cent over the past five years.

Compared to other capitals, Brisbane’s current momentum remains strong.

While Sydney and Melbourne posted slower monthly growth, Brisbane continues to be among the top performers, particularly in the attached dwelling sector. According to PropTrack, Brisbane dwelling values grew 0.24 per cent in May, a modest uptick from the 0.19 per cent gain reported in April.

House values in Brisbane, according to Cotality, tipped over that $1 million mark in May 2025. This marks a 0.5 per cent increase over the month, up from 0.4 per cent in April. Quarterly growth now sits at 1.5 per cent, and annual growth at 6.2 per cent, slightly down from the 6.8 per cent reported in April.

Cotality data confirms that growth in the housing sector is reaccelerating after plateauing earlier in the year. PropTrack also observed a 0.25 per cent increase in Brisbane house values for May, a slight improvement on the 0.21 per cent seen in April.

Brisbane’s unit market remains the standout performer. Median values increased 1.1 per cent in May to $709,823, accelerating from 0.5 per cent in April. Quarterly growth stands at 2.4 per cent, with a year-on-year increase of 11.8 per cent. This segment continues to outperform houses in both price growth and buyer demand.

PropTrack reported 0.18 per cent monthly growth in Brisbane unit values in May, which aligns with the broader trend of moderate but steady gains. The affordability gap between houses and units is clearly pushing more buyers towards this segment, especially those seeking proximity to the CBD without the premium price tag.

Brisbane’s rental market

Brisbane’s rental market remains exceptionally tight. Vacancy rates held steady at 1.0 per cent in May, unchanged from April, confirming ongoing supply shortages.

Rents have reaccelerated in both the house and unit segments. Annual growth in house rents rose to 3.2 per cent in May, up from 3.0 per cent in April. Unit rents increased 4.5 per cent year-on-year, up from 4.3 per cent in April, driven by strong demand and limited availability.

Gross rental yields have remained steady for houses at 3.5 per cent, while unit yields edged down slightly to 4.5 per cent from 4.6 per cent last month, reflecting rising prices in the face of tight rental conditions.

Outlook for Brisbane property market

May 2025 has proven to be a milestone month for Brisbane’s property market. Both house and unit prices reached record medians, with Brisbane now the second most expensive capital in the nation.

Buyer confidence is rebounding, helped by expectations of further interest rate cuts, political stability following the federal election, and encouraging signs of economic resilience.

Listings remain low, but buyer depth is strong, especially for quality properties, many of which are selling quickly and attracting multiple offers.

Conversely, properties with detracting features are facing more scrutiny as buyers become more selective.

As inflation settles within the RBA’s target band and monetary policy becomes more supportive, continued moderate price growth appears likely for the remainder of 2025.

Brisbane’s relative affordability, lifestyle appeal, looming Olympics, and strong fundamentals position it well to continue outperforming many of its interstate counterparts.