Report Predicts 20% Surge in Brisbane House Prices Over Two Years

Brisbane’s property market is on a remarkable upward trajectory, with a new report predicting a significant surge in house values. According to KPMG’s residential property outlook, house prices in Queensland’s capital are expected to rise by nearly 11% this year and an additional 8.9% in 2027.

Brisbane House Prices Forecasted to Surge

For 2026, KPMG has positioned Brisbane as the second strongest performer for house price growth, trailing only behind Perth. The anticipated 10.9% increase for this year showcases Brisbane’s burgeoning market. Additionally, unit prices are projected to climb by 7.8% this year and 4.9% next year.

Key Drivers of the Market Growth

• KPMG’s chief economist, Dr. Brendan Rynne, noted that population growth in South-East Queensland is exacerbating housing supply shortages.
• The median home value in Brisbane reached $1,036,323 in December 2023, reflecting a monthly growth of 1.6% and an annual rise of over 14%.
• The federal government’s 5% deposit scheme plays a crucial role in facilitating first-time buyers’ entry into the market.

Dr. Rynne highlighted that despite ongoing supply chain issues, buyers are willing to pay premium prices in Brisbane. This trend is expected to intensify competition, particularly among young first-time homebuyers looking to break the rental cycle.

Government Initiatives and Market Confidence

In response to the soaring demand, Treasurer Jim Chalmers defended the 5% deposit scheme, asserting it aids first-time buyers in gaining market access without incurring Lenders Mortgage Insurance costs. He emphasized the government’s commitment to increasing housing supply.

Chalmers also referred to the National Housing Accord’s target of delivering 1.2 million new well-located homes by mid-2029. This initiative aims to enhance planning and zoning regulations, encouraging housing construction statewide.

Premier David Crisafulli echoed the sentiment, stating that increasing supply is paramount to resolving the market imbalances. He assured that efforts are ongoing to provide more housing options for all families, including affordable and social housing.

Summary of Housing Outlook

Overall, the KPMG report projects a national house value increase of 7.7% despite looming uncertainty regarding monetary policies. In Queensland, the government has pledged to construct one million new homes, which includes a significant number of social and affordable options by 2044. As the market continues to flourish, Brisbane remains at the forefront of Australia’s real estate landscape, showcasing remarkable resilience and growth potential.