Brisbane’s median house just got cheaper, but still costs more than $1m

Brisbane house prices have finally cracked, dipping by an ever-so-slight $3300 in the March quarter, ending one of the longest streaks of price rises in the city’s history.

The median house price dropped 0.3 per cent to $1,022,026 in the three months to March, halting two full years of growth – the longest upswing in 17 years.

The latest Domain House Price Report, to be released on Thursday, shows a welcome shift for fatigued house buyers, but experts warn the reprieve may be short-lived, with looming rate cuts tipped to reignite demand and fan the flames of one market sector that continues to fire – units.

Brisbane house prices dipped slightly in the March quarter.Credit: Dan Peled

In contrast to houses, the city’s unit sector has continued its record-breaking run. The median unit price rose for the 16th consecutive quarter, the city’s longest-ever stretch of uninterrupted growth.

It rose almost $13,300 (2.1 per cent) in the quarter to $657,645, and was up 16.2 per cent ($91,500) in the past year. Brisbane’s unit market was the second strongest in the country last year, after Perth.

“Brisbane house prices have fallen after an extraordinary run … and yet for units, the growth continues to be almost unstoppable,” said Domain’s chief of research and economics, Dr Nicola Powell.

“This is something the city has never experienced before. It’s been such a change in affordability. And if you spoke to first home buyers, there would be this feeling of them being left behind. An almost 20 per cent increase in prices for units in a year is challenging, to say the least.”

While the slight dip in house prices may not offer much of a breather for budget buyers, Powell said an uplift in supply was a welcome shift.

“I really do think the market is slowing and choice is increasing. That alone reduces urgency. But I still think there’s a lot going on for 2025. And if we do see extreme economic uncertainty unfold, that could mean the RBA provides more reductions to the cash rate.”

Even with house price growth stalling and unit gains moderating, pockets of Brisbane defy gravity.

The northern suburb of Taigum emerged as one of the nation’s top performers, with house prices skyrocketing 40 per cent to $875,000 over the past year. Leafy Sherwood followed, up 38.8 per cent to $1.7 million.

In the unit sector, Milton led the charge with a 38.4 per cent annual rise to $635,500.

Among Brisbane’s priciest suburbs, New Farm retained its crown, climbing 4.7 per cent to a $2.8 million house median. Ascot dipped slightly by 0.8 per cent to $2.38 million.

Blue-chip favourites Paddington, St Lucia and Hamilton officially joined the $2 million club, with Hamilton notching a 20.2 per cent annual jump to $2.2 million.

The growth in Brisbane’s unit prices seems “almost unstoppable”, says Domain’s chief of research, Dr Nicola Powell.Credit: Felicity Caldwell

On the unit front, New Farm once again led the pack, with the median price rising 5 per cent to $945,250. Powell said it’s likely the suburb will cross the million-dollar mark this year – a historic moment for Brisbane’s apartment market.

Ray White Sherwood | Graceville principal Cameron Crouch said the growth in his patch came off the back of a wave of interstate and expat buyers drawn by the suburb’s generous blocks, top-tier schools and proximity to the CBD.

“Normally, about 70 per cent of our buyers are local, but we’ve seen a big push from outside markets,” Crouch said.

“They love the area, the cafes, the parks. And once they look at how close Sherwood is to the city, and then drive through the tree-lined streets, they fall in love. There’s also been big infrastructure work in Indooroopilly, which is also helping.

“Buyers from Sydney and Melbourne are blown away by what you can get for your money here. We’ve seen stock levels tighten, and that’s driving up competition … and most families stay here for 10 to 20 years.”

In Hamilton, trophy-home hunters have driven growth, said Place Ascot director Drew Davies.

“A lot of buyers we’re seeing now have really large budgets, and that’s not something we have seen for a while,” he said.

“They’re a mix of local and interstate buyers, and they’re looking for trophy homes and new builds in those A-grade streets across Ascot and Hamilton.”

The biggest deal in the suburb last year was $12.3 million for the landmark home at 7 Prospect Terrace. It set a new suburb house price record.

Further afield, acreage-rich Moggill has become a magnet for families chasing space and long-term value, said Benjamin Smith of Brisbane Real Estate.

“We just sold 3821 Moggill Road, Moggill, for $3.345 million, which was a substantial rise on the house next door that sold for $3 million 18 months ago,” he said.

“They were similar in age and build, so that’s a clear sign of growth.”