FOMO Still in Play
The New Year is already off to a fast start in Brisbane’s inner north property market. Local buyers who have been searching for months are finding themselves up against intense competition, especially in the unit and townhouse market. Many buyers are frustrated, having missed out on properties last year due to high demand, limited stock, and a market that seems to be moving faster than anticipated. Adding to the heat are interstate investors, many of whom are drawn by Brisbane’s long-term growth prospects and economic prosperity.
This perfect storm of local demand and external interest is creating a competitive environment as buyers rush to secure properties before prices climb even higher. With buyer enquiry levels now escalating following the Christmas break, it’s clear that 2025 is set to be another active year in North Brisbane.
The Clamour for Properties Under 700k
Demand in the North Brisbane property market remains elevated as we step into 2025, driven by several key factors. Quality units and townhouses in inner northern suburbs are especially sought after, with many buyers priced out of the detached housing market turning their attention to more affordable options.
Properties priced under $700,000 are experiencing the fiercest competition. First home buyers, benefitting from stamp duty concessions, are now a major force in this segment, creating stiff competition for investors and other buyers.
Population growth, which surged during the post-COVID boom, continues to elevate the demand for housing across Brisbane. The city’s lifestyle appeal and growing economy are attracting both interstate migrants and local upgraders. This, combined with a constrained supply of properties, has led to escalating prices across many suburbs.
The supply-demand imbalance is stark: the total number of properties available for sale in inner northern Brisbane remains 25–30% below the long-term average. This tight supply, coupled with elevated demand, ensures that competition remains strong and prices continue to rise, a trend that has shown no signs of slowing as we move into the new year.
Ascot is very strong, followed by Windsor, Wilston, Newmarket, Grange, Alderley, and Kaling
A closer look at the numbers reveals some fascinating insights into the North Brisbane property market over the last quarter of 2024:
- House Values:
- Suburbs like Ascot led the way, with median house values increasing by over 6% in the final quarter of 2024.
- Other high-performing suburbs included Windsor, Wilston, Newmarket, Grange, Alderley, and Kalinga, which recorded growth of 3–6% in the same period.
- On the other hand, Kelvin Grove, Hamilton, Hendra, and Everton Park saw a decline in median house values of up to 3% in the final 3 months of 2024.
- Unit Values:
- Wilston recorded a standout quarter, with unit prices rising over 6%.
- Most inner northern suburbs experienced moderate positive growth, except for Red Hill, which saw a slight dip.
- Rental Market:
- Vacancy rates in North Brisbane sit at just 0.8%, well below Brisbane’s average of 1.1%.
- House rents have stabilised, with growth between 0–5% over the past 12 months.
- Unit rents in affordable suburbs like New Farm, Wooloowin, and Wilston have surged by 5–10%, far exceeding Brisbane’s average growth rate of 3.3%.
These figures highlight the diversity of the North Brisbane property market and underscore the importance of understanding local dynamics when making property decisions.
Agents Creating Urgency
Buyers have wasted no time in starting their property search for 2025. Open homes in the inner north are getting busier each weekend, with many buyers eager to secure their home or investment early this year.
Sales agents continue to capitalise on this buyer enthusiasm, leveraging competition to create urgency. Some agents are applying pressure on buyers to make decisions quickly, reminding them that the depth of demand means that properties won’t remain on the market for long.
Single homes, such as 16 Coolah Street Aspley were quickly snapped up, with a contract in place soon after listing. Units such as 2/73 Erneton Street, Newmarket and 3/40 Griffith Street, Everton Park, had strong buyer numbers through at the first weekend of open homes, reflecting the strong demand for properties in the more affordable price points.
North Brisbane Property Market: Thoughts for 2025
Looking ahead, Brisbane’s property market, including suburbs in the inner north, is expected to remain strong throughout 2025, although the pace of growth may moderate compared to the previous two years. Several factors will influence market dynamics throughout the year:
- Federal Election:
History tells us that housing activity often slows in the lead-up to a Federal Election, and 2025 is unlikely to be an exception. Policy announcements and potential buyer incentives may shape behaviour in the months leading up to the polls, adding a layer of uncertainty. Time will tell. - Construction Challenges:
The construction sector continues to face significant headwinds, including labour shortages and rising material costs. These issues have already delayed projects, and South East Queensland dwelling commencements remain well below targets. High costs mean that only high-value niche developments are likely to proceed, which will further constrain housing supply, especially in the higher density suburbs including New Farm, Fortitude Valley, Albion and Chermside. - Interest Rates:
The Reserve Bank of Australia is widely expected to cut interest rates in 2025, which could improve borrowing capacity and reignite buyer demand. However, in the absence of significant rate cuts or new supply, price growth is likely to remain steady rather than accelerate.
Overall, Brisbane’s inner northern property market remains one of the strongest in Brisbane, and in fact all of Australia. With limited supply, strong demand, and ongoing migration, the fundamentals supporting price growth are unlikely to change in the near term. For buyers, competition is expected to intensify, especially for properties under $1.5 million.
Whether you’re a first-time buyer, seasoned investor, or simply watching the market, staying informed is key to making confident decisions. Follow along each month as we unpack the trends and stories shaping the property market in North Brisbane.
Published 24-January-2024
