Lutwyche has remarkably emerged as Brisbane’s leading inner-ring suburb for house price growth, recording an impressive surge of over 21 per cent, even as the city’s overall access to affordable housing significantly tightens.
The latest PRD Smart Moves report, covering the period between the first quarter of 2024 and the first quarter of 2025, reveals a notable shift in Brisbane’s property landscape. During this time, median property prices in the River City rose by 6.8 per cent.
Brisbane’s Shifting Affordability
For the first time, Melbourne has overtaken Brisbane in terms of the percentage of suburbs offering affordable units. Melbourne now boasts 42.9 per cent affordable unit suburbs, compared to Brisbane’s 38.7 per cent and Hobart’s 41 per cent.
This marks a significant drop for Brisbane units, which saw a dramatic decline from 60.3 per cent affordable suburbs in the latter half of 2024.
A suburb is considered both affordable and liveable if its median sales price is below the city median, while also providing good amenities, lower crime rates, and a lower unemployment rate. The report suggests that this decline in affordable options points to a clear undersupply for both houses and units in Brisbane, resulting in reduced sales volume and ongoing price increases.
Growth Hotspots Across the City
Despite the broader affordability challenges, several Brisbane suburbs have experienced strong growth. In the inner ring, Lutwyche led for houses with a 21.8 per cent growth, while Balmoral saw unit prices jump by 41.8 per cent.
In the northern parts of the city, Virginia stood out for houses with a 35.8 per cent increase, and Boondall was a top performer for units, growing by 35.5 per cent. The southern suburbs saw Rocklea’s house prices rise by 34.4 per cent and Woodridge units by 43.4 per cent.
To the east, Birkdale houses increased by 28.3 per cent, and Alexandra Hills units by 39.9 per cent. Finally, in the west, Moggil houses saw a 28.9 per cent rise, with Mitchelton units experiencing 38.6 per cent growth.
Market Dynamics and Future Outlook
The median sales price for houses in Brisbane now stands at $989,000, and for units, it is $698,000. Analysis of vendor discounts between Q1 2024 and Q1 2025 shows a shift for houses to a neutral zero per cent, suggesting a balanced market where neither buyers nor sellers have a distinct advantage. Units, however, still command a premium, though it has lessened to 1.4 per cent, indicating a potential shift that could favour buyers.
Council has substantial development plans in Brisbane Metro for 2025, with $21.3 billion worth of projects focused on mixed-use and infrastructure. These developments aim to boost supply, but the emphasis is heavily on constructing townhouses (2,262), units (10,108), and residential lots (13,194), with only 186 stand-alone houses planned. This imbalance suggests that the undersupply of houses is likely to continue, which will further drive up median property prices across all property types.
The report highlights that the dominant proportion of homes sold in Brisbane Metro during 2024/25 were in more accessible price brackets: less than $849,999 for 43.8 per cent of houses and less than $549,999 for 33.1 per cent of units. This presents encouraging opportunities for home buyers in these segments.
Furthermore, strong sales were observed in the premium price points, with 30 per cent of houses selling at $1.15 million and above, and 19.7 per cent of units selling at $850,000 and above, signalling positive prospects for existing property owners. Both the house and unit markets in Brisbane Metro have yet to reach their peak.
Published Date 29-Jun-2025
