Since the 2026 federal budget was announced, the Brisbane property market has experienced a noticeable slowdown. Buyers have become more cautious, and many investors appear to be reassessing their strategies. While the intention behind recent policy changes is to encourage investors towards newly built properties rather than established homes, what we are seeing on the ground is somewhat different.
Rather than simply shifting from established properties into new builds, many investors are holding off altogether.
The Market Narrative Has Changed
It is difficult to forecast exactly where the Brisbane property market is heading. What we can see, however, is that the narrative has changed.
In the short term, the market is softer, with some property prices declining as buyers become more cautious. But looking further ahead, Brisbane property continues to have solid fundamentals: Brisbane’s steady population growth combined with ongoing housing demand—especially from renters and first-home buyers— continue to support the market’s strength.
We see properties that continue to attract strong interest. From a rental perspective, a two-bedroom apartment in Winsor recently attracted around 20 groups of people to an inspection. Many of those attending were younger renters who have yet to purchase their first home.
We’re seeing the same pattern across more affordable properties, where competition among tenants remains very strong.
The new-property market is also being supported largely by first-home buyers. In Brisbane’s outer areas, particularly Logan and Ipswich, first-home buyers continue to make up the majority of purchasers looking at brand-new properties.
So while the sales market has slowed, demand for housing itself has not disappeared.
Why Supply Struggles to Keep Up
Developers and builders face substantial hurdles in delivering new homes. Rising construction and labor costs, along with regulatory complexities, have made many projects financially challenging. One developer recently assessed a potential apartment project that wasn’t deemed feasible, even though the land was offered free, due to the high construction costs.
Overall costs have increased, including planning fees, consultant charges, and, most significantly, construction expenses.
When speaking to many developers, a general feedback is that the return is not good enough to justify taking on such high risk, which further limits supply in established areas.
What This Means for Buyers and Sellers
For sellers, this environment reinforces the importance of presenting homes that are ready to move into. Many buyers, especially younger ones, prefer not to deal with repairs or renovations after settlement. Simple improvements like fresh paint, new carpet, and completed maintenance can significantly enhance a property’s appeal.
Looking Beyond the Short-Term Market
I believe property remains a strong long-term investment, especially in Brisbane, where housing supply still lags behind demand. While short-term factors like price fluctuations, cautious buyers, interest rates, and policy changes can impact the market, it’s the fundamentals that matter most.
Brisbane benefits from steady population growth, ongoing infrastructure investment, and a growing need for housing. However, financial challenges in new development mean supply struggles to keep pace.
This imbalance puts continued pressure on both sales and rental markets. For investors, careful property selection and due diligence are crucial in today’s environment. For buyers, the current slowdown may offer opportunities to find well-priced properties with strong long-term potential.
Ultimately, the 2026 federal budget has shifted the narrative, but the underlying need for housing remains. Brisbane’s supply shortage and strong rental demand will continue to support property values over time. With a thoughtful, long-term approach, property can still be a very good investment.
At CPC Properties, we believe every successful sales campaign starts by understanding the buyer before marketing the property. By identifying your target demographic and tailoring the strategy accordingly, we can help you position your property for today’s market rather than yesterday’s.
If you have a property in Toowong, Brisbane, Indoorphilly and surrounds and are considering selling, we’d be happy to provide honest, targeted advice based on your property, its location and current market conditions.
Whether you’re wondering what your property could realistically achieve, how to position it to attract the right buyers, or whether now is the right time to sell, our team can help you understand your options and make an informed decision.
We’re also happy to answer any questions or queries regarding management, selling, investment, or tenancy. Use our Contact Form Property Sales and Management Brisbane, simply fill out our form with your enquiry, and our friendly team will respond to you as quickly as possible. Alternately, you can call us on (07) 3721 8585.
