(THE CHALLENGE OF BUYING A FIRST HOME)
46.4 per cent – that’s the large portion of their salary a young couple buying in Brisbane can expect to funnel into an entry level home, according to updated modelling. That’s just over 10 per cent less than the 57.6 per cent Sydneysiders have to shell out to secure their first house.
Australians living in the nation’s largest city, in particular those residing within proximity to the harbour or the coast, have long had to embrace apartment living to afford a home in desirable areas. What hardly anyone would have anticipated, is that within the last five years, Queensland’s capital would follow suit. As buyers gravitate towards units as the ‘next best thing’ to stay close to the city, they have to budget 34.4 per cent of their income for their mortgage. That’s only 1.4 per cent less than the 35.8 per cent in Sydney!
These figures, courtesy of Domain’s 2025 First-Home Buyer report reveal the sharp sting of buying even an entry-level unit in Brisbane – $610,000 is the current average price of a two bedroom unit. For first home buyer couples between the ages of 25 to 34, our city has become one of the toughest in the country to secure a home to call your own, amidst soaring cost of living and stagnating salaries.
(TENERIFFE MARKET)
Having sold property in Teneriffe for a decade, I’ve witnessed a clear shift in demographics in this unbelievably attractive pocket for buyers of every age. In the early days of my career, small Woolstore apartments and units along the foot of Teneriffe Hill were still being snapped up by buyers securing their first home in the heart of the action.
Over time, I’ve had the privilege of taking these one or two bedroom apartments to market again, once as these buyers grow out of them. As they continue to upsize into larger Woolstores and homes or move to different cities and suburbs, they are gradually being replaced by an entirely different demographic.
Who are the buyers drawn to Teneriffe today? Downsizers, ready to enjoy the convenience of single-level living, high-income professionals looking for stylish, lock-up-and-leave residences, and families who are keen to stay in the inner-city, but have been priced out of the local house market.
As property values have increased by 75.2 per cent in Brisbane since 2020, apartment living has grown in popularity. Last year in particular, I noticed one group flocking to the 4005 market like never before. Parents – local and interstate – who have enjoyed a significant rise in value of their existing, often paid off assets, expanding their property portfolio, while securing a stunning property in a trendy suburb for their adult children.
Years ago, Teneriffe was an area rife with first home buyers, but today, it has morphed into an attractive, yet somewhat exclusive bubble. The Woolstores in particular have evolved from grungy warehouses with simple fit outs to palatial residences where jaw-dropping renovations compete for attention. With this change has come a price uptick outpacing every other apartment style in the city.
This comes as no surprise – Sydney’s Surry Hills or Melbourne’s Fitzroy dollar-per-square metre is not for the faint of heart. With international former industrial districts achieving eye-watering results for decades, there’s no reason for Teneriffe’s stellar trajectory to change.
(THE GOLDEN ARC)
Spanning from the Sunshine to the Gold Coast, this luxury corridor, not to be confused with the fast food giant’s logo, is a stretch of premium property that encompasses Brisbane. Creating opportunities for investors and homebuyers across these regions, these areas are set to emerge even stronger in 2025.
In the past five years, the Sunshine and Gold Coast have witnessed an identical 76 per cent increase in price, cementing themselves as Australia’s third and second most expensive housing markets respectively, just behind Greater Sydney.
It comes as no surprise that along the coast, the remaining beach shacks have one by one given way to mansions or luxurious high-rises, and in Brisbane, buyers are falling over one another to secure whatever property they can get their hands on. While it comes as no surprise that home values in premium locations have soared, it is alarming to see just how far inland the price rise has crept. I think it’s safe to say no one expected to be shelling out a million dollars for a home in Ormeau this soon!
Experts predict that Brisbane, with its five year growth rate of 83.5 per cent, will likely join its coastal counterparts this year, cementing itself as a premium market to complete the Golden Arc. In fact, it’s expected that all major cities, except Darwin, reach or exceed the $2m mark for luxury properties in 2025.
In summary, premium pockets in Brisbane won’t be dropping in value anytime soon, and sitting on the sidelines is a recipe for disappointment.
(SHOULD I BUY NOW?)
For Brisbane buyers, the change in affordability has become so stark, it pushes the Australian strategy of building wealth through property further and further away. Government incentives have been improved and restrictions relaxed to support young Queenslanders getting into their first home, but to amass a deposit for a Brisbane unit, buyers now need to spend at least four years saving. That calculation assumes there are two individuals putting aside 20 per cent of their post tax income. At the rate at which property prices continue to steadily climb across the country’s capitals and satellite cities, and the current cost of living, it’s a dire outlook for those who cannot rely on the bank of mum and dad to support their investments, in particular individuals looking to buy solo.
Conversely, it creates opportunities for those who have already amassed significant equity to leverage it in order to build generational wealth. Those who purchased property just five years ago, prior to Brisbane’s property boom, benefitted from entering the market before prices surged, as well as record-low interest rates over the years. As a result, they have a significant head start on building a strong portfolio compared to anyone looking to get on the property ladder today.
(FEBRUARY 2025 INTEREST RATE CUTS)
The Reserve Bank of Australia’s recent rate cut has provided much needed relief, albeit minimal, for households across the country. This notable change in monetary policy has however inspired new confidence in the market, possibly indicating a more supportive environment for activity in the months ahead.
The RBA remains tight-lipped about any further rate cuts throughout 2025, but increased borrowing capacity could encourage more buyers to enter the market. In turn, this could drive up demand and potentially lead to rising property prices, particularly in sought-after areas for both investors and owner-occupiers.
(PROPERTY STOCK LEVELS)
In a moving market, where saving a deposit remains challenging and stock is not abundant, entering the market can seem like pushing a boulder uphill. The impact of market sentiment in particular is not to be underestimated, putting pressure on both buyers and sellers to act fast.
Cyclone Alfred, who had South East Queensland and Northern New South Wales holding their breath for days before eventually hitting the coast, was a perfect case study of our nation’s rampant fear of missing out. On one hand, bodies sliding down Miami Hill coated in mud, and on the other end of the spectrum, individuals pillaging the supermarkets for toilet paper and bread (an odd combination, if you ask me), alongside other essentials to survive a natural disaster.
How does that relate to buyers and sellers you wonder? During the days spent sitting at home, expecting the worst, while the Alfred loomed kilometres off the Gold Coast, many felt transported back to early 2020 – a period of uncertainty in the property market before buyers lunged at just about anything they could get their hands on. The ripple effect of the ensuing stock shortage is still felt today, but despite stock labels stabilising, fear of missing out is still rife, especially when factoring in Australia’s ongoing housing supply issue.
(BRISBANE’S FUTURE)
International interest too has picked up, especially as Brisbane’s glow-up for the 2032 Olympics continues, despite not having a single plan for a stadium in sight. I love our city, but if scenes akin to the Drake concert at the Brisbane Entertainment Centre are all we have to offer, I’m afraid in the future I might have to pretend I’m from Melbourne when someone picks up on my Aussie slang.
The recently inaugurated Brisbane Metro may provide much needed mass transit for commuters and relief on major roads, but I fear our international visitors will find it rather useless when they’re stuck in Boondall with no way of getting back to the CBD.
The 100 day review of the infrastructure and planning for the 2032 Olympic and Paralympic games concluded on March 8th, with the final report expected to be released on March 25th. According to 9News, the report recommended that the state build Victoria Park as the new Olympic Stadium. Only time will tell what the final decision will be.
Despite a promising start as a glittering new attraction for Brisbane, The Star casino, which has faced a very rocky first few months, was saved from the brink of collapse earlier this month. It has sold off its 50 per cent stake in the Brisbane casino to the owners of the other half, in order to stay afloat.
Cash-flow troubles and other negative headlines have overshadowed this new destination’s offering, but since the opening of the Queen’s Wharf Precinct last August, Brisbane’s residents and visitors can finally enjoy a number of new restaurants and bars, as well as a completely transformed stretch of parkland opposite ever-popular South Bank.
With an average of 10,800 people crossing the Kangaroo Point Green Bridge daily since its opening, this addition to the Brisbane landscape has proven to be extraordinarily popular. Two new venues on the CBD end of the bridge, Mulga Bill’s and Stilts are just a few of this year’s hottest new openings, with many more set to be revealed in the coming months.
(SUMMARY)
Overall, 2025 promises to be an exciting year for Brisbane. Significant investments in infrastructure, tourism, and urban development continue to reshape the landscape of our River City, creating opportunities for businesses and residents alike.
The property market in Brisbane will benefit from these changes, with increased demand driven by ongoing population growth and major projects like the Waterfront Brisbane development, Howard Smith Wharves expansion and the Cross River Rail.
In Teneriffe, Kokoda’s Teneriffe Banks development promises a fine new riverfront address, with five visionary buildings, commercial spaces and lush public gardens transforming Brisbane’s last remaining riverfront land.
As the city’s appeal as a lifestyle and business destination develops, both residential and commercial property sectors are expected to see further growth, offering lucrative prospects for investors and homebuyers.
Talk soon,
Ben
