Brisbane’s apartment market has been making headlines recently, with talks of a potential surge in prices and demand. But is this surge driven by genuine market fundamentals, or is it simply a case of FOMO (Fear of Missing Out)? Let’s dive into the latest data and expert opinions to separate fact from fiction in Brisbane’s apartment market.
Current Market Trends
Recent data from CoreLogic shows that Brisbane’s unit prices have experienced significant growth. As of February 2025, the median unit price in Brisbane stands at $685,291, representing a robust 15.8% annual increase. This growth outpaces that of houses in the capital city, which saw a 9.4% rise over the same period.
The FOMO Factor
FOMO is a powerful motivator in real estate. The fear of missing out on a perceived opportunity can push buyers to make hasty decisions. Anecdotal evidence, like crowded open homes and rapid sales, can fuel this feeling. However, it’s crucial to separate perception from reality by examining the actual market data.
Factors Driving the Surge
Several factors are contributing to the strong performance of Brisbane’s apartment market:
- Population Growth: Brisbane continues to attract residents from other states, particularly Sydney and Melbourne, due to its affordability and lifestyle advantages.
- Infrastructure Development: Major projects like the Cross River Rail and Brisbane Metro are enhancing the city’s appeal and connectivity.
- Limited Supply: A slowdown in construction has restricted the supply of new apartments, concentrating buyer demand on existing properties.
- Rental Crisis: Brisbane’s rental market is experiencing historically low vacancy rates, pushing more people towards purchasing apartments as a more stable housing option.
- Interest Rates: Changes in interest rates can quickly shift market dynamics, impacting borrowing capacity and buyer sentiment.
Market Segmentation
It’s important to note that the apartment market is not monolithic. Different segments may perform differently. For instance, the luxury apartment market might show different trends compared to the entry-level market. Buyers should focus on the specific areas and property types that align with their needs and investment goals.
Expert Opinions
Louis Christopher, Managing Director of SQM Research, predicts strong price growth for Brisbane in 2025. He suggests that if interest rates are cut by 25 to 50 points during the year, Brisbane homes could see a price increase of 9 to 14%.
Simon Pressley, founder of Propertyology, while bullish on Queensland’s property market overall, focuses more on regional areas for the highest growth potential. This suggests that while Brisbane’s apartment market is strong, it may not be the top performer in the state.
FOMO or Fundamental Growth?
While there’s clear evidence of strong growth in Brisbane’s apartment market, it’s important to distinguish between genuine market drivers and potential FOMO-induced hype. The data suggests that the current surge is largely based on solid fundamentals:
- Sustained population growth
- Infrastructure improvements
- Supply constraints
- Affordability compared to other capital cities
However, potential investors should be cautious of overly optimistic projections and ensure they’re making decisions based on thorough research and their individual financial situations.
Making Informed Decisions
Instead of succumbing to FOMO, potential buyers would be wise to make informed decisions based on data and professional advice. Brisbane Home Loans has access to Corelogic reporting and data which we routinely make available to our clients. Talk to our specialist Mortgage Brokers who can assess your financial situation, explain different loan options, and provide insights into the current market.
Researching specific areas of interest is also important. Don’t just rely on general market trends. Look at local sales data, vacancy rates, and planned developments in the suburbs you’re considering. Ask us how we can help. (07) 3889 9250
