Aerial view over Brisbane river. Picture: Lachie Millard
Brisbane property prices have surged year-on-year but interest rate hikes are set to significantly slow that growth over the next year.
The realestate.com.au Property Market Outlook Report, released today, revealed property prices in Brisbane were predicted to lift five per cent over 2026, with a further lift of six per cent in 2027.
Tight supply and strong population growth were the main drivers supporting rising property prices in southeast Queensland.
An apartment at 1106/470 Main Street, Kangaroo Point is on the market.
Brisbane recorded home price growth of 16.4 per cent year-on-year to the end of the May – the second highest capital city rise, behind only Perth (20.6%).
“Supply remains tight, with new home construction over the past five years falling short of what has been required to accommodate strong population growth, driven by interstate
and overseas migration,” the report revealed,” said REA Group senior economist Angus Moore.
“Among Australia’s five largest cities, Brisbane has the second-largest gap between housing supply and population growth, which is expected to support stronger price outcomes than Sydney and Melbourne through 2026 and into 2027.”
84 Burn Street, Camp Hill is for sale via expressions of interest.
Choice for buyers in the River City remains limited, with listings in Brisbane flat year-on-year in May, and down around 40 per cent on pre-pandemic levels.
“Housing demand will continue to be supported by population inflows and
income growth, as well as boosted demand from first-home buyers, owing to the expanded Australian Government 5 per cent Deposit Scheme.
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An actual driveway has just been listed for sale in Brisbane
14 Kelvin Street, Wavell Heights is going to auction.
“On the supply side, new residential construction remains soft.
While leading indicators, like building approvals and commencements, have been trending in the right direction for the past couple years, actual completions remain low.
With rates rising, new commencements may well slow, and that limited flow of new homes will continue to place a floor under home prices.”
Across the nation, Melbourne prices were predicted to drop four per cent this year while Sydney would drop three per cent.
18 Trafalgar Street, Morningside.
“Home price growth has clearly slowed, and market conditions cooled, following the three consecutive rate hikes from the RBA,” he said.
“Home prices in Sydney and Melbourne have declined for three consecutive months, and home prices nationally have stalled.
“This softness is likely to continue through 2026, as the effect of higher rates continue to flow through and tax changes weigh on investor demand, before growth returns towards the end of the year and into 2027.
Adelaide is expected to jump five per cent, Hobart six per cent, while Perth is set to record the biggest jump this year at seven per cent.
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