News and Reviews
Brisbane Home Prices Set to Soar Beyond Average Wage in 2025
Brisbane Home Prices Set to Soar Beyond Average Wage in 2025
By Ian Rogers
A new forecast reveals Brisbane’s property market is poised for extraordinary growth in 2025, with home prices expected to rise by more than the average annual wage in just one year. According to SQM Research’s Christopher’s Housing Boom and Bust Report 2025, released Monday night, Brisbane’s median dwelling prices are forecast to increase by 9 to 14 per cent, equating to a rise of $77,000 to $120,000.
If the Reserve Bank of Australia (RBA) cuts interest rates earlier than anticipated, Brisbane could see price growth of up to 16 per cent, adding a staggering $138,000 to the current median dwelling price of $862,000. This dramatic increase far surpasses the average Australian wage, solidifying Brisbane’s status as a housing market hotspot.
Population Growth and Tight Housing Supply Driving Prices
Brisbane’s robust growth is underpinned by continued strong population increases, estimated at 2.5 per cent in 2024, alongside a tight housing supply. Report author Louis Christopher said these factors are creating significant upward pressure on prices.
“There’s no sign of a slowdown at all,” Mr. Christopher told The Courier-Mail. He highlighted that 2024 marked the 12th consecutive year of growth in Brisbane’s housing market, with a forecasted rise of 15 per cent, exceeding even the most optimistic predictions.
National Comparison: Brisbane Leads, Except for Perth
Brisbane is expected to outperform nearly all Australian capitals in 2025, trailing only Perth, where prices are forecast to grow by 14 to 19 per cent (or as high as 20 per cent with early rate cuts).
In contrast, other major cities are predicted to struggle:
- Sydney and Melbourne: Prices expected to decline by -5 to -1 per cent.
- Canberra: Largest projected decline, with prices falling by -6 to -2 per cent.
Despite Brisbane’s rising prices, the city remains an attractive alternative for buyers priced out of Sydney and Melbourne, offering comparatively better value.
Olympics-Driven Optimism
Brisbane’s property market is expected to remain strong leading up to the 2032 Olympics, with no signs of weakening in sight.
“We started the year thinking Brisbane would outperform the market through to the 2032 Olympics, and there’s nothing in the data we can see that suggests a change in that view,” said Mr. Christopher.
Interest Rate Cuts to Fuel Demand
SQM Research’s base case scenario assumes the RBA will cut interest rates by 0.25 to 0.50 per cent in mid-2025, spurring homebuyer demand across the country. If cuts come earlier, as soon as March 2025, the Brisbane market could experience even greater growth.
“If interest rates are cut as forecasted, this event will immediately stimulate homebuyer demand across the country,” Mr. Christopher said.
Southern Migration Fuels Demand
While Brisbane prices are rising, the city still offers relative affordability compared to Sydney and Melbourne. The report notes a continued flow of residents from southern states where housing affordability is out of reach for many.
“Brisbane is not offering the same value as it did previously, but compared to Sydney and Melbourne, it’s still offering relatively good value,” said Mr. Christopher.
Outlook for 2025 and Beyond
Brisbane’s housing market is positioned for sustained growth as population pressures, economic factors, and continued demand from interstate buyers combine to create a dynamic environment. With forecasted price gains eclipsing those in most other capitals, Brisbane is cementing its reputation as a national real estate powerhouse.
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