The property market in Brisbane is on fire—again. While many parts of Australia are struggling with affordability, Brisbane is holding strong, with house prices forecast to rise by almost 20% in the next two years. It’s a surprising shift, but for some, it feels like a golden opportunity.
The Property Boom: What’s Driving Brisbane’s Growth?
According to the latest KPMG report, Brisbane is on track to outperform much of the country, with house prices expected to rise by 10.9% in 2026 and 8.9% in 2027. The unit market isn’t far behind, with projected price growth of 7.8% this year and 4.9% in 2027. These numbers make Brisbane the second strongest performer after Perth.
So why is this happening? One major factor is population growth. More people are flocking to Brisbane, particularly as southern states experience their own housing crises. But the rapid growth comes at a cost: housing supply is struggling to keep up with demand. Despite this, people are still willing to pay higher prices to secure their homes.
As Brendan Rynne, KPMG’s Chief Economist, points out, even though housing affordability is becoming an issue, more young people are using the 5% deposit scheme to lock in their first home, intensifying the competition for lower-priced homes, explains ABC News.
The Toll of Rising Prices on Affordability
The growing price tag of properties in Brisbane isn’t all sunshine. While it’s great news for homeowners and investors, first-time buyers and renters are feeling the squeeze. With house prices now averaging around $1.036 million, up 14% from last year, the affordability issue is reaching a breaking point. Some areas are seeing a 1.6% increase in prices just within the last month.
For renters, the situation is even harder. As more people move into the city, demand for rental properties is pushing rents higher. It’s a vicious cycle that leaves many struggling to find affordable accommodation.
Government Efforts to Tackle the Crisis
To address the growing demand, the Queensland government is taking action. The National Housing Accord, which aims to build 1.2 million new homes by 2029, is a step in the right direction. But even with these plans, experts argue that building enough homes to meet the demand could take years.
In the meantime, Treasurer Jim Chalmers is standing by programs like the 5% deposit scheme, which helps first-time buyers purchase homes without the burden of Lenders Mortgage Insurance (LMI). While these programs are helping some people get their foot in the door, it’s clear that more needs to be done to ease the affordability crisis, particularly for those struggling to buy in high-demand areas.
What’s Next for Brisbane?
The question on many minds is: will Brisbane’s property market keep soaring, or is it heading for a correction? With rising interest rates and a growing focus on affordability, some worry that the market’s growth might not be sustainable. But for now, it seems like Brisbane’s housing market will continue to be a key player in Australia’s real estate landscape. Buyers, sellers, and renters will all have to adjust to this fast-changing market.
