Aerial view of Brisbane, where home prices are predicted to continue to rise in 2026.
Brisbane home prices are forecast to rise to a record high again in 2026, despite interest rates now expected to remain on hold indefinitely.
A new realestate.com.au report, released today, predicts property prices in the Queensland capital to climb another seven to 10 per cent next year — a slightly slower pace than in 2025.
The Property Market Outlook report expects home prices in both Brisbane and Perth to increase the most of all capitals, following growth of 13.7 per cent and 15.5 per cent, respectively, this year. Brisbane’s median dwelling price is just shy of $1m at $997,000.
Home prices across Brisbane are predicted to hit new highs in 2026, according to realestate.com.au research.
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PropTrack economist Anne Flaherty said Brisbane’s growth in the past few years had been underpinned by overseas and interstate migration, tight stock on market and constraint on the delivery of new housing, infrastructure investment, and very tight rental markets.
But Ms Flaherty said the “extraordinary pace of growth” was unlikely to continue as affordability became a more significant headwind.
“With interest rate cuts now appearing unlikely in 2026, demand growth will be constrained by repayment burdens and deposit hurdles,” Ms Flaherty said.
Home prices in Brisbane are tipped to rise another 7-10% in 2026. Photo: Lyndon Mechielsen.
“Lower priced regions in Brisbane’s west are expected to remain the most resilient, while higher value regions may see a more noticeable slowdown. Overall, Brisbane is still likely to outpace the national average, but to a lesser degree than in recent years.”
The report found home prices across the combined capital cities are predicted to lift between six and eight per cent over 2026 — slightly slower than the 8.7 per cent rise recorded in the year to November 2025.
Melbourne recorded the smallest year-on-year growth in 2025 amongst the capitals, followed by Sydney, and both capitals can expect to see similar levels of growth — five to seven per cent — in 2026.
Despite forecasts interest rates could rise next year, Brisbane home prices are expected to continue growing.
“Demand will be supported by population inflows, income growth, investor activity, and a recovery in borrowing capacity following 2025’s series of rate cuts,” the report states.
“The expanded Australian Government 5 per cent Deposit Scheme and Help to Buy shared equity scheme will also reinforce demand from first-home buyers, but with interest rates now expected to remain on hold for an extended period, demand growth will increasingly be constrained by repayment burdens and deposit hurdles.
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“On the supply side, new housing delivery continues to lag population growth. Total listings volumes are low relative to history in many parts of the country, limiting the stock of homes for sale. These factors will continue to place a floor under prices throughout 2026.”
Land prices are also expected to continue growing in 2026, according to Oliver Hume, although Perth, South East Queensland and Adelaide are predicted to ease from recent highs into more sustainable levels of growth.
Matt Bell, Oliver Hume chief economist.
The gross median price of land in South East Queensland is now $483,600.
Oliver Hume chief economist Matt Bell said rate cuts to date and a stronger household sector would be a positive driver, and a strong, established market meant new house and land was still an attractive option for many buyers.
“South East Queensland will enjoy another solid year, supported by steady migration and a strong, established housing market,” he said.
“However, the region has already run at or near supply capacity for several years. Cost and supply constraints will temper the advantage that SEQ enjoyed from 2023 to 2025, while
affordability will become an issue.”
Compare the Market economic director David Koch said he was “certain” the value of capital city residential properties would continue to rise in 2026 because of the supply shortage.
“No matter what the economy is doing, no matter what happens to interest rates, I think
there’ll be solid growth,” Mr Koch said.
Compare the Market economic director David Koch. Photo: Jono Searle.
“While housing prices seem set to defy gravity, the job market offers another silver lining.
The job market remains strong heading into the New Year. That means, even though the cost of living crisis will continue, it looks as though those who want a job can to get a job.
“You really don’t want a double-whammy, where living costs are sky-high and people are also
out-of-work. Anyone who can remember a recession, lives in fear of another one.”
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