Brisbane on the Boil: Supply Shrinks, Demand Surges, and First Home Buyers Jump In
Brisbane on the Boil: Supply Shrinks, Demand Surges, and First Home Buyers Jump InThe Brisbane property market continues its dynamic run, fueled by falling rates, strong consumer sentiment, rising investor activity, and a wave of new first home buyers keen to get in before prices run away. Here’s a quick market snapshot, based on August 2025 property market figures and what we have been experiencing in the market during the course of our buyer searches and negotiations in the last few weeks.
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Market at a Glance
• Auction clearance rates: Holding firm at 70%, pointing to continued buyer urgency.
• Median house price (Brisbane): $1,040,651, up 7.3% year-on-year. We are seeing entry level 3 bedroom, 1 bathroom homes selling for well over $1.1m in the 15km ring from the CBD. Some inner city suburbs have median house prices growing at significantly faster rates (e.g. Sherwood 33%, Wilston 26%, Northgate 24%, Banyo 23%) as well as units growing well above these rates (Stafford – 30%, Newmarket 29%)
• Median unit price (Brisbane): $740,992, up 11.1% YoY. We are seeing basic 2 bedroom units that appeal to the owner occupier market selling for in excess of $750k in the inner city rings and oversized units or units with views, courtyards or larger floor plans well in excess of this (in the high $800-$900k+) range.
• Days on market: Median of 21 days, with 83% of suburbs selling in under 30 days.
• Consumer sentiment is also at a 3.5 year high and real wages growth is at its highest since June 2020 also supporting positive property market activity.
• Affordability and elevated levels of household debt being the main lid on growth as well as fueling the lower segment of the market.
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First Home Buyers Flood In
Following sweeping changes to the Federal Government’s First Home Buyer Guarantee Scheme, Brisbane has already seen a notable uptick in entry-level demand:
• Property cap lifted to $1M.
• Unlimited places
• No income caps, opening the door to more buyers.
• Single parents buying with just 2% deposits.
• Commencement fast tracked to 1 October 2025
While designed to improve accessibility, the impact has been swift, in terms of rising market values especially for properties that are also attractive to investors and downsizers. On the ground we have been seeing fierce competition at open homes and multiple offers, especially in the $600K–$900K range. In demand units and townhouses are often selling for significantly above selling agent expectations and in a few days after first inspections. Entry-level properties in inner-ring suburbs are often selling within 7–10 days, with limited negotiation.
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Interest Rates & Borrowing Power
Although the RBA held rates steady again in July, several lenders have pre-emptively cut fixed rates, in anticipation of further reductions later this year.
• Lower rates = higher borrowing power = more upward pressure on prices.
• Combined with tight supply, this has kept momentum strong across both houses and units.
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Investment Loans on the Rise
Queensland is seeing a surge in investor activity — now comprising over 34% of new home loan approvals (up from 29% in March). Are you seeing this in your business? We have certainly seen this reflected in our current client base as well as prospects we are speaking to. There is significant competition in the $1-1.2m range and more opportunity in the $1.2m+-$1/5m range.
• Rental yields in Brisbane remain attractive, particularly for units in lifestyle suburbs and growth corridors.
• Investors are capitalising on expected capital gains driven by constrained supply and a booming interstate migration trend as well as the longer term benefits perceived to be generated by the upcoming 2032 Olympics.
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What We Are Seeing On The Ground
• Inconsistent pricing trends: Some prestige homes sit on the market for months, while modest homes in high-demand areas and quality properties in A-grade location are snapped up in days.
• Cautious optimism: Selling agents still report strong buyer sentiment, but pricing expectations must remain realistic. Overpriced listings are languishing on the market as agents work to adjust seller expectations.
• Tight stock = competition: Listings in Brisbane were down 22.2% year-on-year in June and Brisbane was the only capital city where new listings did not increase in July, creating one of the leanest markets in recent years.
• As we head into the Spring Selling Season, we do expect an increase in supply but the number of A grade properties on offer we expect to remain tight throughout the remainder of the year.
Your Next Step
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At Property Pursuit Advisors, we specialise in guiding upgraders, downsizers, first home buyers and investors through the Brisbane property market with confidence. Whether you’re purchasing from interstate or overseas, are local but don’t have time to commit to the extensive search and due diligence process, want to ensure you don’t over pay or simply want expert guidance so that you make intelligent property decisions, we’re here to make the process as smooth and rewarding as possible.
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