Alexandra Hills has emerged as a standout performer in Brisbane’s property market, with unit prices in the eastern suburb seeing an impressive annual growth of almost 40 per cent.
The latest PRD Smart Moves report for Brisbane shows that median property prices across the city increased by 6.8 per cent between the first quarter of 2024 and the first quarter of 2025.
This growth signals a tighter market, leading to a notable shift where Melbourne has now become more affordable than Brisbane for units.
Affordability and Liveability Changes
The percentage of affordable unit suburbs in Brisbane has significantly dropped from 60.3 per cent in the latter half of 2024 to just 38.7 per cent in the first quarter of 2025. This means fewer suburbs now meet the criteria for being both affordable and liveable, which requires a median sales price below the city average, along with good amenities, low crime rates, and low unemployment.
Dr Diaswati Mardiasmo, PRD Chief Economist, explained that Melbourne’s unit market is currently in a recovery phase, which creates unique opportunities for buyers there.
In contrast, many other Australian markets, including Brisbane, are already in a growth period. This situation has made finding affordable and liveable suburbs in Brisbane more challenging due to ongoing price increases and a limited number of new homes being built.
Alexandra Hills’ Strong Performance
While affordability is a growing concern across Brisbane, Alexandra Hills has shown remarkable growth in its unit market. Units in this eastern suburb experienced a 39.9 per cent rise in median prices, making it the top performer for units in the eastern region. The suburb’s strong community feel, parks, and general liveability likely contribute to its appeal for residents.
The median sale price for houses in Brisbane now sits at $989,000, with units at $698,000. Despite these rising prices, the report noted that a large number of homes sold in 2024/25 were still within more accessible price brackets, particularly for houses under $849,999 and units under $549,999.
Supply and Development Outlook
The decline in affordable suburbs in Brisbane suggests a clear shortage of homes, with fewer sales but continued price growth. To address this, $21.3 billion worth of projects are planned for Brisbane Metro in 2025.
These developments will focus on mixed-use properties and public infrastructure. However, the plans show a much greater emphasis on building townhouses (2,262), units (10,108), and residential land lots (13,194) compared to stand-alone houses (only 186).
Experts believe this trend means the shortage of stand-alone houses will continue, which will likely push up property prices for all types of homes even further. The market for houses is currently balanced, meaning neither buyers nor sellers have a strong advantage. However, the unit market still favours sellers, partly because some house buyers are now looking at units instead.
For renters, Brisbane’s market remains tight, with house rental yields at 3.2 per cent and unit yields at 4.5 per cent as of May, outperforming Sydney and Melbourne. The overall property market in Brisbane has not yet reached its peak.
Future Market Expectations
With inflation settling within the Reserve Bank of Australia’s target range, and potential interest rate cuts expected from mid-2025, consumer confidence in the property market could improve.
However, factors like slower population growth, improving housing supply (especially for units), and ongoing affordability issues might prevent very sharp price increases. Investors remain interested in Brisbane, drawn by good rental returns and stable market conditions.
Published Date 29-Jun-2025
Photo Credit: PRD Smart Moves
