New data has revealed that Brisbane’s cheapest dwellings have risen at breakneck speeds, with brokers warning that the trend has caused drastic shifts in buyer behaviour.
Domain’s 2026 First Home Buyer Report has shown Brisbane posting some of the strongest national growth rates in entry-level dwelling prices, with local brokers warning that their clients were being pushed to stretch budgets and move faster than ever to secure a property.
According to the report, for the first time on record, the Queensland capital has overtaken Sydney as having the longest time required to save for an entry-priced unit.
The report, released on Thursday (26 February), reiterated that entry-level stock in Brisbane was no longer the “budget” option it once was.
On the unit side, the shift was record breaking.
Entry-level units in Brisbane now sit at around $660,000, up 24 per cent annually – a growth rate that towers over Sydney’s 4 per cent and Melbourne’s 1.3 per cent.
Entry-level house prices in the city now sit at about $856,000, after jumping 20.6 per cent in a year, well ahead of the national average of 12.3 per cent and significantly outpacing Sydney’s 15 per cent and Melbourne’s 6.7 per cent.
Domain’s chief of research and economics, Dr Nicola Powell, characterised this as part of a structural change in the unit market and said the traditional “safety valve” for first home buyers was starting to fail.
The report also found that deposit timelines were stretching in step with prices.
For units, Brisbane overtook Sydney for the first time on record, with a saving time of four years and 11 months – the longest in the country.
However, Sydney still boasts the longest saving time for an entry-level house at seven years and seven months, yet Brisbane climbed to second place at six years and three months, reflecting how quickly prices had raced ahead of wages.
‘Properties moving very quickly’, says Brisbane broker
Mortgage broker and Mortgage Choice Brisbane City group director, Matt Cunliffe, said the report’s findings mirrored what he was seeing on a daily basis.
He described a market where demand at the lower end was intensifying, and listings were being snapped up at speed.
“Regarding current market trends, I have definitely noticed the surge in entry-level home and unit prices in Brisbane, especially when compared to the shifts in Sydney and Melbourne,” Cunliffe said.
“This jump in demand is being driven by strong local fundamentals and consistent interstate migration.
“On the ground, activity has been noticeably higher than usual; we are seeing a high volume of first home buyers and new investors (given available equity in their homes), with properties moving very quickly once they hit the market.”
Cunliffe said these conditions were forcing would-be buyers to compromise on location and property type.
“To help borrowers navigate these steep price increases, we are encouraging flexibility regarding location, such as exploring emerging suburbs for better value,” he explained.
“We are also advising on alternative property types like town houses or older homes with growth potential, while emphasising the necessity of having pre-approval ready to move fast in this competitive environment.”
He also said that deposit strategies were becoming more creative and collaborative.
“To address the extended timelines required to save for a deposit, I am discussing the possibility of joint purchases with partners, friends or family members to boost borrowing capacity,” Cunliffe outlined.
“I am also directing clients toward available government schemes and reminding them that a long-term holding strategy of five-plus years remains a solid approach.”
He added that the forces behind the sharp rise were unlikely to vanish in the short term.
“Interstate migration continues to be a primary driver of this activity, and major infrastructure projects are further increasing Brisbane’s appeal,” Cunliffe noted.
“However, affordability remains a growing concern for many first-time buyers in the current climate. As much as the government schemes are useful, in combination with the growing investor interest, the sub $1m market is quickly being eroded.”
Budgets blown out and serviceability walls
Brisbane-based Hunter Galloway mortgage broker and 2017 FBAA National Broker of the Year, Jayden Vecchio, said the rate of change in Brisbane’s entry-level market had shocked many aspiring buyers.
He added that the escalation in unit prices in particular had forced clients to rethink what and where they could buy.
“First home buyers who came to us 12 months ago with a $500,000 budget are now finding that budget doesn’t get them anything reasonable in Brisbane – many have had to reset to $700,000 just to find a one-bedroom unit near the city,” he said.
He also noted that existing owners were watching valuations soar to levels that would have seemed unlikely a few years ago.
“Home owners are seeing valuations surge – standard family homes in suburbs like Murarrie and Salisbury are now coming in between $1.5M and $1.7M – which is great for equity but creates a real challenge for anyone trying to upgrade,” he said.
Vecchio said his focus had shifted to helping clients expand their borrowing power and keep repayments manageable as they took on larger loans in a high-priced market.
“We’re utilising the Home Guarantee Scheme heavily for first home buyers – getting into the market with a 5 per cent deposit and no LMI makes a real difference,” he said.
“We’re also doing regular rate reviews for existing clients, regularly securing discounts that free up meaningful cash flow on larger loan amounts and increasingly, we’re working with niche lender policies.”
On deposits, he said that strategies have had to become sharper and more targeted as saving timelines lengthen.
“The biggest shift I’ve seen is moving clients away from an open-ended property search,” he said.
“I tell them to become a suburb expert – pick three suburbs, learn every sale, and you’ll recognise a fairly-priced property instantly and be ready to act.
“Beyond that, the main levers we’re pulling are equity releases for existing owners considering town houses or units to enter the market sooner rather than waiting on a house deposit, and for the right client, rentvesting.”
Yet for Vecchio, the most striking change wasn’t what clients could buy, but rather what banks would allow them to borrow.
“Many of my clients have hundreds of thousands in usable equity thanks to the Brisbane boom – but they’re hitting a wall with banks because incomes simply haven’t kept pace with prices,” Vecchio said.
“That gap is where we spend most of our time now, demand remains very strong, and there’s a real sense of urgency – clients are pushing to get deals done before prices move again.”
[Related: National house prices accelerate despite rate hike spectre]
