- 21 May 2025
- By API Magazine
Property investors seeking capital growth in Brisbane will continue to make gains in the outer suburbs but other property types and hotspot areas are springing up.
Property owners looking for capital growth would have to be unlucky not to have enjoyed an increase in their home value in Brisbane.
Only 2 per cent of suburbs across the metropolitan region recorded a decline in dwelling values over the past 12 months.
Like elsewhere in Australia, the bulk of that price growth is occurring in the outer suburbs.
According to Cotality (formerly CoreLogic), values across the lower quartile of the Brisbane market are up 14.0 per cent over the past 12 months compared to a 4.8 per cent rise in values across the upper quartile.
Across the top 20 suburbs recording the highest annual gain in values, 17 were located at least 20km from the Brisbane GPO, with more than half (11) of the top 20 located within the Ipswich LGA.
Brisbane UNITS: Median Sales Data by annual change – March Qtr 2025
| SUBURB | QTRLY No. SALES | QTRLY MEDIAN SALES | QTRLY CHANGE | ANNUAL No. SALES | ANNUAL MEDIAN SALE | 1YR CHANGE |
|---|---|---|---|---|---|---|
| Milton | 18 | $734,000 | 32.85% | 120 | $632,500 | 39.01% |
| East Brisbane | 13 | $741,500 | (7.43%) | 83 | $697,000 | 35.34% |
| Greenslopes | 24 | $704,500 | (9.10%) | 97 | $734,250 | 28.82% |
| Kelvin Grove | 32 | $651,000 | (1.36%) | 149 | $635,000 | 28.67% |
| Lutwyche | 24 | $711,250 | 1.97% | 124 | $683,000 | 26.48% |
| Nundah | 66 | $710,000 | 5.97% | 384 | $630,111 | 26.30% |
| Richlands | 23 | $637,500 | 4.51% | 119 | $592,000 | 25.42% |
| Kedron | 25 | $645,000 | (2.09%) | 81 | $650,000 | 25.00% |
| St Lucia | 35 | $740,000 | (5.13%) | 158 | $751,500 | 24.65% |
| Chermside | 53 | $643,000 | 1.74% | 253 | $628,000 | 24.36% |
Brisbane HOUSES: Median Sales Data by annual change – March Qtr 2025
| SUBURB | QTRLY No. SALES | QTRLY MEDIAN SALES | QTRLY CHANGE | ANNUAL No. SALES | ANNUAL MEDIAN SALE | 1YR CHANGE |
|---|---|---|---|---|---|---|
| Brisbane City | 21 | $805,000 | 35.29% | 76 | $612,500 | 61.18% |
| Newstead | 16 | $811,500 | (21.97%) | 65 | $942,500 | 48.66% |
| Sherwood | 13 | $1,455,000 | (14.36%) | 63 | $1,680,000 | 35.76% |
| Richlands | 11 | $720,000 | (17.86%) | 52 | $772,000 | 26.56% |
| Middle Park | 15 | $1,152,500 | (3.15%) | 64 | $1,175,000 | 25.33% |
| Fortitude Valley | 28 | $680,000 | 32.04% | 90 | $595,000 | 25.26% |
| Upper Mount Gravatt | 26 | $1,210,000 | 3.64% | 123 | $1,195,000 | 24.48% |
| Moggill | 18 | $1,312,500 | 9.38% | 89 | $1,200,000 | 24.22% |
| Northgate | 11 | $1,500,000 | 14.50% | 64 | $1,283,750 | 22.26% |
| Chermside West | 15 | $1,130,000 | 7.62% | 88 | $1,100,000 | 21.88% |
(Source: REIQ, for API Magazine)
The real estate affordability pressures that have driven buyers to seek value ever further from the city centre are showing no signs of abating and Tuesday’s (20 May) interest rate cut could fuel even greater demand among buyers for whom every dollar counts.
Yet, as Brisbane’s cheaper suburbs continue to propel the city’s 7.8 per cent annual median dwelling value growth (third to Perth’s 10 per cent and Adelaide’s 9.8 per cent), other market segments are emerging as potential new property hotspots.
Nationally, despite affordability issues, houses (up 1.1 per cent over past three months) continue to outperform units (0.5 per cent). Brisbane, like Perth, is an outlier where units (1.6 per cent) are providing stronger returns than houses (0.9 per cent).
On an annual basis, units are almost doubling house price growth, with the former up 12.8 per cent and the latter by 6.8 per cent.
Hotspot suburbs to watch
Buyers are still eager to be in closer proximity to the city, according to Nick Meredith, Buyers Agent, The Property Baron.
“Anything under $1.5 million in the inner suburbs is extremely competitive and getting harder to find and demand for entry level units is also very strong.
“But the growth in the outer suburbs will continue to be strong over the rest of this year and likely into 2026.
“If we have another 2 or 3 interest rate drops this year, buyers’ borrowing capacity will increase and people will be prepared to spend more and put fuel on the fire that will result in these markets growing at a similar rate to what has been happening over the last 12 months.”
Mr Meredith said any areas around the 2032 Olympic venues or those benefiting from the big infrastructure projects in the lead up to the Games will be areas to watch.
Healthier rental yields were also attracting investors to some of Brisbane’s outlying suburbs.
Peter Ly, Principal Buyers Agent, Australian Property Experts, said he expected the rate of growth will start to slow down in these outer suburbs but was not going away.
“We are still years away from any market decline in these areas as population growth continues, infrastructure projects are completed, and rental demand keeps up.
“Brisbane’s outer suburbs offer better affordability and higher rental yields, both of which buyers are prioritising in this still-high interest rate environment.
“With the current interest rates and borrowing capacities stretching household budgets, buyers, both investors and home owners, are being left with no choice but to look for value in outer suburbs in and around the council areas of Ipswich, Logan, and parts of Moreton Bay.”
Six suburbs he identified as presenting the best value for investors seeking capital growth into 2026 and beyond were East Ipswich, Raceview, Springfield, Caboolture South, Griffin and Waterford.
Size matters with smaller home types
A similar view was expressed by Patrick Ryan, Director of Local Knowledge Buyers Agent in Brisbane, who said the Local Government Areas of Moreton Bay, Redlands and Ipswich are experiencing increased demand due to their affordability, strong local economies, good transport infrastructure, services and lifestyle amenities.
“The availability of larger land parcels in some of the outer suburbs when compared to the inner suburbs, healthy rental yields and strong potential for future capital growth also contribute to this performance,” he said.
The same cohort of prospective buyers who stand to gain most from falling interest rates could find their potential gains erased by rising property prices responding to the better financial conditions.
“Further interest rate cuts and first homebuyer government incentives will stimulate competition amongst first home buyers and young families, as well as investors, buying in the outer suburbs.
“Demand and affordability along with improvements to infrastructure, employment opportunities, services and lifestyle amenities will also help to maintain this trend in the short term.”
Brisbane’s infrastructure evolution was what buyers seeking capital growth should be evaluating, Mr Ryan added.
“Alongside suburbs set to benefit from the Brisbane 2032 Olympics, suburbs targeted in Brisbane City Council’s Suburban Renewal Precinct Plans also offer investors the opportunity to benefit from specific local investments aimed at enhancing lifestyle and liveability.
“If history is a guide, investing in these suburbs ahead of the curve can reap rewards, including Wynnum, Mount Gravatt and Stones Corner.”
For houses, Mr Ryan said scarcity and land value will continue to drive upward price growth.
“As a result, detached post-war homes (renovated and unrenovated) in well-established Brisbane suburbs in the inner-eastern and bayside areas of Brisbane on land over 600sqm in the sub-$1.5 million bracket will be a solid performing market segment over the next year or so.”
For other building types, larger apartments and townhouses were the best option.
“Downsizers and professionals will continue to target large boutique apartments in smaller complexes in inner-city suburbs of Brisbane, due to their facilities, accessibility and proximity to lifestyle amenities and services.
“Spacious three-plus bedroom townhouses in lower density developments located in desirable inner and middle ring suburbs of Brisbane with functional outdoor areas and an additional living area should see strong growth,” he said.
Article Q&A
Where in Brisbane are property prices rising fastest?
Property owners looking for capital growth would have to be unlucky not to have enjoyed an increase in their home value in Brisbane. Only 2 per cent of suburbs across the metropolitan region recorded a decline in dwelling values over the past 12 months. Like elsewhere in Australia, the bulk of that price growth is occurring in the outer suburbs.
Are units or houses the best investment in Brisbane?
Nationally, despite affordability issues, houses (up 1.1 per cent over past three months) continue to outperform units (0.5 per cent). Brisbane, like Perth, is an outlier where units (1.6 per cent) are providing stronger returns than houses (0.9 per cent). On an annual basis, units are almost doubling house price growth, with the former up 12.8 per cent and the latter by 6.8 per cent.
