Brisbane’s scorching property market shows no signs of abating, with house prices projected to rise by almost 11 per cent this year, a new report has revealed.
KPMG’s residential property outlook forecast tipped Queensland’s capital as the second strongest performer for 2026, behind Perth.
House prices are forecast to rise 10.9 per cent this year and 8.9 per cent in 2027.
Unit prices are also projected to increase by 7.8 per cent this year and 4.9 per cent the next.
KPMG chief economist Dr Brendan Rynne said strong growth in the first half of 2025 should have moderated due to affordability constraints.
“But instead, the second half of last year accelerated growth further, especially in already overheated cities Perth and Brisbane, supported by the expanded 5 per cent deposit scheme,” Dr Rynne said.
“Despite the fact there aren’t enough houses being built, buyers in these cities are prepared to pay more than the supply shortage would justify.
“As a result, at the entry level, the market will continue outperforming this year, with more young people seizing the opportunity to break the rent cycle and lock in their first home sooner, intensifying competition at the affordable end and ensuring prices remain firm.”
According to the latest Cotality figures, Brisbane’s median home value was $1,036,323 in December, increasing 1.6 per cent in the month alone, and more than 14 per cent for the year.
Dr Rynne said south-east Queensland’s population growth was exacerbating supply constraints.
“More and more people are making the move to Brisbane, but as with most other cities, housing supply has not kept pace, amplifying cost pressures.
“As a result, Brisbane’s growth is expected to continue for the foreseeable future”.
Originally Published in ABC News by Alex Brewster. View article online HERE.