Brisbane market holds strong as rents accelerate

Brisbane’s housing market continues to outperform its southern counterparts, with new data confirming rising rents, resilient home values, and a rare strategic window for sellers and investors as Sydney and Melbourne slide deeper into a downturn following the federal government’s investor taxation reforms.

Cotality data shows Australia’s housing slowdown has intensified, with the national index falling 0.4 per cent in June — the sharpest monthly decline since 2022. Sydney led the downturn with a 1.2 per cent fall, followed by Melbourne at 1.0 per cent.

Brisbane moved in the opposite direction, with values rising 0.3 per cent in June, 1.3 per cent over the quarter, and 17.4 per cent annually.

The rental market is tightening further. SQM Research’s monthly asking rents data shows Brisbane houses rose 1.1 per cent and units increased 0.6 per cent over the month to the week ending 12 July. Weekly asking rents remain elevated, with Brisbane houses now averaging approximately $840 per week — up more than 10 per cent year-on-year — and units at $644 per week, up seven per cent annually.

Image Property Managing Director Joel Davis said the monthly rent rises highlight the immediate consequences of reduced investor activity in the Brisbane market.

“SQM’s monthly asking rent data shows rents are continuing to climb,” Mr Davis said.

“When investors retreat, renters pay the price, and that is already under way.

“The Federal Budget’s taxation changes have dampened investor activity, but rental demand hasn’t slowed.

“With the vacancy rate still around 0.9 per cent, according to SQM, Brisbane renters will face further increases unless investor confidence returns.”

The city’s vacancy rate of 0.9 per cent, as measured by SQM Research, underscores the structural imbalance between supply and demand that continues to drive rental price growth.

Mr Davis said the current market conditions also present a rare strategic advantage for vendors — one that does not exist in Sydney or Melbourne.

“Reduced buyer competition means sellers can finally sell and buy in the same market without being crushed by bidding wars,” he said.

“Brisbane isn’t experiencing the same weakness as the southern capitals, and that shift in buyer urgency is giving sellers more breathing room than they’ve had in years.”

While Sydney and Melbourne buyers have pulled back amid declining values and reduced confidence following the federal budget’s investor taxation changes, Brisbane’s relative resilience has shifted negotiating power toward vendors in a way that has rarely been seen in recent years.

“Right now, sellers have a real advantage in Brisbane,” Mr Davis said.

“Values are still rising and quality stock remains scarce, which is a combination that gives sellers more control over timing, price, and negotiation than we’ve seen in a long time.

“If you’re considering a move, this is one of the cleanest selling environments Brisbane has had in a long time.”

The divergence between Brisbane and the southern capitals reflects broader structural forces — including interstate migration, constrained housing supply, and strong underlying demand — that have insulated Queensland’s capital from the downturn taking hold elsewhere.

For investors, Mr Davis said the data leaves little room for hesitation, with Brisbane’s fundamentals positioning the market well ahead of the next tightening cycle.

“Brisbane’s fundamentals are stronger than most other capital cities with values still rising, supply constrained, and rents climbing month-on-month,” he said.

The divergence between Brisbane and other capital cities is now well established in the data, with the city’s combination of annual value growth of 17.4 per cent and tightening rental conditions pointing to sustained pressure on both buyers and renters in the months ahead.