Brisbane House Prices Soar 11%, Nearly Double Sydney’s
Brisbane’s property market is witnessing unprecedented growth, with a projected surge in house prices of 11% by 2026, nearly double the forecast for Sydney. This remarkable increase is backed by a KPMG report, indicating a robust demand that is thriving despite affordability issues.
Price Forecasts for Brisbane
KPMG has revised its 2026 house price predictions for Brisbane, increasing the forecast from 5.6% to 10.9%. Furthermore, unit prices are expected to rise by 7.8%. Experts anticipate that house prices might escalate by an astonishing 20% by the end of next year.
Comparison with Other Cities
Brisbane’s anticipated growth considerably outpaces that of Sydney, which is projected to see only a 5.8% increase. Other Australian cities are also expected to experience varying growth rates:
- Perth: 12.8%
- Adelaide: 8.2%
- Melbourne: 6.8%
Key Factors Driving Growth
According to KPMG’s chief economist, Dr. Brendan Rynne, Brisbane’s housing market is thriving due to several factors:
- Fear of missing out among buyers.
- An expanded 5% Deposit Scheme from the Albanese government, which has boosted demand.
- Persistent investor interest combined with population growth.
Dr. Rynne noted that these factors have created a demand-supply imbalance, prompting prices to rise beyond what traditional metrics would suggest. The Australian Property Institute supports this outlook, indicating strong market sentiment in Queensland, scoring 8.3 out of 10.
Concerns About Affordability
Despite the positive outlook, there are substantial concerns regarding affordability. A survey by the Australian Property Institute revealed that 66.3% of valuers in Queensland identified construction costs as their primary concern. This situation, coupled with rising interest rates, poses risks to future growth.
Sally Tindall from Canstar.com.au highlighted that interest rates are likely to increase, which could impact Brisbane’s annual growth by several percentage points. Current economic conditions, such as an unemployment rate of 4.1%, have set the stage for potential rate hikes by the Reserve Bank of Australia.
Long-Term Implications
KPMG predicts that while Brisbane will see strong growth in 2026, this trend may stabilize, with a forecasted 8.9% growth in 2027 as affordability concerns become more pronounced and supply starts to improve. The housing market dynamics suggest that while immediate demand is high, long-term affordability remains a pivotal factor for potential homeowners.
In summary, Brisbane’s property market is on an upward trajectory, supported by numerous factors, yet it faces challenges that could shape its future dynamics.
