Brisbane property market update, February 2026

The national picture is increasingly divided. Sydney and Melbourne recorded 0.0 per cent monthly growth, slipping into negative rolling quarterly territory at -0.1 per cent and -0.4 per cent respectively. The divergence between Australia’s two largest markets and the mid-tier capitals is stark. Brisbane (1.6 per cent), Adelaide (1.3 per cent), Hobart (1.2 per cent) and Perth (2.3 per cent) all materially exceeded the combined capitals’ 0.6 per cent monthly result. On an annual basis, only Perth (22.0 per cent) and Darwin (19.4 per cent) surpassed Brisbane’s 17.3 per cent gain, with Sydney (6.8 per cent) and Melbourne (5.5 per cent) lagging considerably. This gap has continued to widen in recent months, with no signs of meaningful convergence on the immediate horizon.

A notable structural shift is also emerging in buyer composition. Australian Bureau of Statistics (ABS) data shows loans to first-home buyers rose 6.8 per cent from the September to December quarter of 2025, and are 9.1 per cent higher than December 2024, the strongest result in two years, with volumes at their highest level since March 2022.

Queensland, NSW, Western Australia, and the ACT led state-level gains. The federal government’s 5 per cent deposit guarantee and Help to Buy initiative are clearly supporting this cohort, reducing the time required to save a deposit and expanding the range of accessible properties.

This dynamic appears to be influencing price growth across different value segments, with price movements below scheme price caps much stronger than those above, a trend clearly evident in Brisbane’s market segment data.

Supply conditions remain the primary driver of Brisbane’s strength. According to SQM Research, new listings in Brisbane during January were 15.3 per cent lower than a year ago, with total listings down 22.8 per cent year-on-year, one of the largest declines of any capital city. Brisbane’s total listing stock sits 31 per cent below its five-year average. This chronic shortage gives buyers few choices and sellers the upper hand in negotiations.

Auction clearance rates averaged 70.4 per cent through February, significantly above year-ago levels and well above the threshold typically associated with rising prices. Even the February Reserve Bank of Australia (RBA) rate hike to 3.85 per cent, the first increase since November 2023, did little to dampen immediate auction momentum, confirming that the supply-demand imbalance currently outweighs the near-term drag from higher borrowing costs.

Brisbane dwelling values

Brisbane’s median dwelling value reached $1,080,538 in February, up from $1,054,555 in January. Quarterly growth of 4.8 per cent eased marginally from January’s 5.1 per cent, though the annual result of 17.3 per cent marks a clear acceleration.

Source: Cotality

Cotality’s stratified index for the three months to January shows the lowest 25 per cent of dwellings rose 6.5 per cent, the middle 50 per cent gained 5.5 per cent, and the highest 25 per cent rose 4.0 per cent, compared with 6.8 per cent, 5.9 per cent and 4.6 per cent respectively in the prior quarter. While growth has moderated fractionally across all segments, the pattern remains consistent. The lower end of the market continues to outperform, driven by concentrated buyer competition from first-home buyers and investors operating below the $1 million price point.

Source: Cotality

Proptrack confirmed dwelling price growth of 0.7 per cent for February.

Brisbane house values

The median house value in Greater Brisbane rose to $1,175,981 in February, up from $1,149,589 in January. Monthly growth of 1.5 per cent was unchanged from the prior month, whilst the quarterly gain eased slightly to 4.6 per cent from 4.9 per cent. The annual result of 16.7 per cent represents a meaningful acceleration from January’s 15.1 per cent, placing Brisbane amongst the national leaders, exceeded only by Perth (21.8 per cent) and Darwin (20.1 per cent).

For context, Sydney’s annual house growth is 6.8 per cent and Melbourne’s 5.5 per cent, highlighting the scale of Brisbane’s outperformance.

Gross yields remain steady at 3.2 per cent, unchanged from last month. Including rental income, the total annual return on a Brisbane house over the past twelve months is estimated at approximately 20.2 per cent, a figure that continues to attract both local and interstate investment.

Proptrack reported house price growth of 0.6 per cent for February, indicating a reacceleration from the prior month.

Source: Cotality

Brisbane unit values

Brisbane’s unit market continues to be the standout performer. The median unit value reached $844,844 in February, up from $824,764 in January. Monthly growth of 2.1 per cent edged higher than January’s result, whilst the annual gain of 20.1 per cent marks a reacceleration from 18.3 per cent last month.

The unit market is benefiting from multiple tailwinds, including worsening housing affordability pushing buyers into the attached dwelling segment, continued investor demand attracted by a 4.0 per cent gross yield, and rental market conditions that continue to reward income-focused property holders. Total annual return for Brisbane units, including rental income, is estimated at approximately 25.3 per cent, the second highest of any capital city. Only Perth (23.9 per cent) recorded stronger annual unit growth amongst the capitals.

Proptrack reported unit price growth of 0.9 per cent for February, reaccelerating from the prior month.

Source: Cotality

Brisbane’s rental market

Brisbane’s rental market remains firmly under pressure. The vacancy rate in Greater Brisbane was recorded at 1.0 per cent in January, well below the 3 per cent level typically associated with a balanced market. Annual house rent growth stands at 6.3 per cent, unchanged from January, whilst unit rent growth of 6.8 per cent is also steady, both continuing to outpace inflation and compound affordability challenges for renters.

Gross yields remain stable at 3.2 per cent for houses and 4.0 per cent for units, both unchanged from last month. Despite yields sitting below long-run averages, investor appetite has not diminished. Investors currently comprise 41.1 per cent of housing finance commitments in Queensland, compared with a decade average of approximately 33 per cent. This elevated participation reflects continued confidence in Brisbane’s rental fundamentals and ongoing return prospects.

Nationally, the rental index rose 0.7 per cent in February, the strongest monthly result since October 2024. Building approvals data suggest that new housing supply will remain insufficient to address the shortage in the foreseeable future. Whilst approvals have lifted modestly from recent lows, construction lag times of twelve to twenty-four months mean that meaningful new supply will not reach the market until at least 2027. For renters and prospective buyers alike, there is little relief on the supply side in the near term, which continues to underpin both price and rent growth across Brisbane.

Source: Cotality

Summary

February has delivered another month of broad, data-supported growth across Brisbane’s property market. Values rose across all dwelling types, annual growth rates accelerated, and the structural conditions underpinning performance, constrained supply, tight vacancy, and sustained buyer demand, remain firmly in place.

Three headwinds warrant monitoring. First, the escalating geopolitical instability in the Gulf region, where military confrontations involving the United States, Israel and Iran have produced widespread airspace closures, flight disruptions through Dubai and Doha, and risks to global shipping. Events of this nature can weigh on consumer confidence, and any flow-through to Australian property sentiment deserves close attention in the weeks ahead.

Second, political uncertainty surrounding potential reforms to negative gearing and capital gains tax concessions ahead of the May 2026 federal budget. Whilst nothing has been legislated, Treasury is understood to be actively modelling options. Uncertainty of this kind has historically been sufficient to pause investor decision-making, and given investors comprise 41.1 per cent of Queensland’s housing finance commitments, any sustained hesitation from this cohort could ease competitive pressure in segments most reliant on investment demand.

Third, the February RBA cash rate increase to 3.85 per cent, with further hikes remaining possible, will erode purchasing power and may dampen near-term confidence.

However, it is our view that these headwinds are unlikely to reverse Brisbane’s underlying trajectory.

Supply remains deeply constrained, vacancy is tight, and incomes are rising. The Home Guarantee Scheme continues to underpin first-home buyer activity. The fundamental imbalance between housing supply and demand in Brisbane continues to favour a market where values will, over time, move higher – even if the path is not entirely linear. The buyers and investors who succeed in this environment will be those who remain disciplined, understand the nuance of individual suburbs and property types, and act with conviction when the right asset presents itself.

Melinda Jennison is the president of the Real Estate Buyers Agents Association of Australia (REBAA) and director of Streamline Property Buyers.