Brisbane has experienced a remarkable surge in property prices, with the median unit price increasing by nearly $60,000 in just three months, according to the latest House Price Report from Domain. The report, released on January 5, 2026, highlights that the median unit price in the city reached a record $770,471, reflecting an 8.1 percent rise over the December quarter. Simultaneously, the median house price climbed by $50,000, or 4.5 percent, to $1,171,237, marking a significant challenge for potential buyers and renters in an increasingly competitive market.
The rapid increase in house prices translates to an astonishing average gain of more than $3,800 per week over the last quarter of 2025. The surge is primarily driven by intense competition among first home buyers, supported by government incentives, and a dwindling number of properties available for sale. This dynamic has effectively narrowed the gap between unit and house prices to a five-year low, highlighting the shifting landscape of Brisbane’s property market.
Dr. Nicola Powell, Domain’s chief of research and economics, stated, “It is just unbelievable. Brisbane is still one of the standout markets nationally, and units are doing the heavy lifting because that’s where buyers can still afford to play.” She emphasized that the significant price growth, exceeding 80 percent over the past five years for both houses and units, has left many Australians struggling to keep pace, as wage growth has not matched the rapid inflation in housing costs.
Brisbane’s affordability crisis is evident, with only one suburb remaining below the $500,000 threshold—Russell Island. Five years ago, the median unit price was just over $418,000, while the median house price was approximately $628,000. The current state of the market has prompted concerns about accessibility for prospective homeowners.
Factors contributing to this surge include increased investor activity, deteriorating affordability for detached housing, and the impact of the Australian Government’s 5 percent deposit scheme. Dr. Powell noted, “We can’t underestimate the impact of the expanded home loan guarantee scheme. It probably sparked a wave of investors as well who were all trying to get in before the first home buyers.”
Looking ahead, while Dr. Powell anticipates that potential interest rate hikes may temper the momentum, she believes that the lower end of Brisbane’s market will continue to outperform. Specific suburbs demonstrate this trend, with Alderley experiencing a stunning 30.1 percent increase in median prices to $803,000. Stafford and Newstead also reported substantial gains, with increases of 28.3 percent and 28.2 percent, respectively.
In contrast, the suburbs of Ipswich have shown strong performance in the housing market. North Booval, for instance, saw median prices rise by 25.9 percent to $670,000. Closer to the city, Yeronga recorded the largest increase, with house prices jumping 24.2 percent to $1,657,500.
At the high end of the market, prestigious suburbs also experienced significant growth. Hawthorne houses surged 20.4 percent to a median of $2.4 million, while New Farm increased by 17.9 percent to $3.3 million. Sarah Hackett, principal at Place New Farm, noted that a decrease in available properties, combined with soaring demand and a backlog in construction, has driven prices higher. She shared a recent sale in Carina where a renovated home sold for $6.15 million after receiving six offers in just ten days.
On the other hand, Logan’s suburbs have outperformed traditionally sought-after areas. Woodridge, for instance, witnessed a staggering 203.8 percent growth over the past five years, with median prices reaching $607,500. Rebecca Cuderman from NGU attributed this boom to the 5 percent deposit scheme and a shift in investor focus. “The first home buyer grant changed everything – even before it officially came in,” she remarked.
Overall, Brisbane’s property market reflects a complex interplay of factors that have led to unprecedented price increases, raising concerns about affordability for many Australians while simultaneously rewarding existing homeowners with significant gains. As the market evolves, the future remains uncertain, particularly for first-time buyers striving to enter the dynamic Brisbane housing landscape.
