(A SIX MONTH SNAPSHOT)
So far, 2025 has been the year of heightened geopolitical tensions. As opposing governments launch attacks, the world watches, on edge, as escalating tensions risk interrupting vital shipping paths and international energy supplies. Dramatic headlines and escalating armed conflicts across the globe certainly had the potential to destabilise our local markets, despite being oceans away, but so far, Australia’s economy has proved to be resilient in the face of global turmoil.
Market turbulence triggered by POTUS’s antics in the White House earlier in the year drove investors away from the volatility across the financial markets, instead favouring the relative stability of residential property, injecting renewed stimulus into the property market.
On our shores, the nation’s appetite for big decisions and major investments has resumed with fervour, following a brief down-turn in the weeks leading up to the Federal Elections in early May. After an unfortunate combination of awful weather, a string of subsequent long weekends paired with school holidays and a potential change of government, we have noticed buyers returning to the market with renewed appetite to act fast.
Two very welcome interest rate cuts since the start of the year, with additional slashes anticipated later in the year by both markets and economists have taken some pressure off borrowers facing rising living costs. For the first time in two years, the cash rate has fallen below 4 per cent, now sitting at 3.85%.
Despite global and national conditions drawing parallels to the COVID-19 era, economists predict that it is unlikely we’ll experience an exact repeat of the pandemic boom, but rather a moderate, sustainable trajectory. Rates are not expected to hit the same historic low, and the excess capital of lockdown savings has been replaced by the constraints of cost of living, Despite this, have noticed an influx of buyers acting with intention to secure properties with strong offers within short timeframes, keen to secure their next purchase before circumstances shift again.
(BRISBANE PROPERTY MARKET)
In the last quarter, Brisbane’s property market has demonstrated resilience and growth, solidifying its position as one of Australia’s most dynamic real estate sectors. In May 2025, the average house price surpassed $1 million and median unit values now exceed $700,000, cementing Brisbane as the second most expensive capital in Australia, surpassed by Sydney alone.
Brisbane’s property market has continued its steady ascent throughout May, with median dwelling values increasing by 0.6 per cent. Together with Perth and Adelaide, the River City remains one of only three capital cities maintaining its streak of record-high dwelling values for a number of consecutive months. In the past five years, Brisbane’s average dwelling price has increased by an eye-watering 73.6 per cent, leaving those who secured properties in pre-pandemic years in an extraordinarily favourable position.
(BUYER BEHAVIOUR)
Housing supply remains unable to keep pace with the insatiable demand, in particular in the unit market, which has once again outperformed houses in terms of price growth.
A number of factors influence this trend, but the support available to first home buyers is a key driver. The current price and income caps, in relation to the average house price, have moved the dream of a standalone house and land out of reach for the average buyers looking to secure their first home. Instead, they are turning their interest toward medium-density residential buildings, and as new incentives are released, such as the recently announced Boost to Buy home ownership scheme, the pool of buyers capable of securing sub-$1 million properties will only continue to expand. Investors too have returned to the market in droves since the easing of interest rates, flocking to units, which traditionally offer a better ongoing return on investment for landlords than freehold houses and land.
In May alone, unit values increased by 1.1 per cent. By way of comparison, houses experienced only a 0.5 per cent price growth. Throughout the past quarter, that’s a 2.4 per cent increase for units, versus 1.5 per cent increases for houses. Entry-level houses have quite simply moved beyond reach for first home buyers; they are targeting properties in the lower price points, competing with investors to secure what could be desperately needed rental stock and inevitably driving prices up in that bracket.
As stock levels remain tight, days on market have decreased, reflecting the heightened buyer urgency we have noticed. Offers are coming in quick and strong – in the past month alone, we’ve called off three auctions due to the quality of the offers made prior, simultaneously setting several new square meter rate records in different Woolstores.
Property prices may continue to rise, but if the anticipated rate drops come into effect, borrowing capacity will increase, therefore heightening buyers’ willingness to spend. The result? More fuel to an already raging fire, which will likely result in markets growing at a similar rate to what we’ve experienced throughout the past year. The momentum in the market is undeniable.
(BURGEONING BRISBANE)
Earlier this year the much-anticipated plans for the Brisbane and SEQ’s 2032 Olympic and Paralympic Games venues were finally released, cementing the city’s envisioned transformation for the years ahead.
Suburbs in the city’s inner-north will undoubtedly benefit from the significant cash injection to boost the local infrastructure ahead of this global event, with the middle ring as well as growth corridors benefitting from the uplift and infrastructure access as well. The positive knock-on effect in areas benefiting from, or proximity to, major projects such as the Cross River Rail and recently inaugurated Brisbane Metro are not to be underestimated, enhancing the city’s connectivity and liveability, which will inevitably boost dwelling values.
(A WINDOW INTO THE WOOLSTORES)
Looking at recent results within the Woolstore buildings, it’s hard to believe these units were trialled as student accommodation in the early nineties. Over thirty years later, these residences are a vibrant tribute to Brisbane’s industrial past, positioning themselves in a class of their own in the ever-popular apartment market. As the home-ownership landscape in Brisbane shifts, these extraordinary units will forever remain in a class of their own, encapsulating a fragment of the past, while offering a wide range of floor plans, aspects and unique features.
Frequently renovated with utmost care and quality finishes, the Woolstores have become prized possessions, attracting a diverse range of buyers, while becoming more exclusive as the years fly by. Throughout the past months, we’ve had the pleasure of representing and selling a number of large floorplan apartments with three to four bedroom configurations in prime positions, often purchased by owner-occupiers looking to downsize from free-standing homes or seeking a charming Brisbane base.
The lure of the exposed timber beams and exposed brick walls is undeniable, but the proximity to the river and the vibrant lifestyle on offer is Teneriffe’s not-so-secret drawcard. Close to the CBD, yet retaining its unique village charm amongst its prestige homes, heritage buildings and tree-lined streets (despite the loss of an iconic fig tree during ex-cyclone Alfred in March), Teneriffe’s appeal has positioned it as Brisbane’s most sought-after suburb.
(SUMMARY)
Despite rising living costs and global turmoil, the Brisbane property market has sustained its steady growth over the past months, quietly positioning itself as a heavyweight in the Australian property market.
Buyer demand will undoubtedly continue to put pressure on housing supply, fuelling the city’s upward trajectory. Ongoing infrastructure developments in all corners of the city, a robust economy driven by a diverse range of industries and continued population growth provide a favourable environment for property investment.
The sunshine state may not have lived up to its name this year, enduring more than a year’s worth of downpour in the past six months, but the River City’s lifestyle continues to mature and prosper, making it more attractive by the minute.
