KPMG’s latest residential property outlook states that that Brisbane house prices will increase by 10.9% in 2026 and by another 8.9% in 2027. With almost 20% cumulative growth in the next two years, Brisbane becomes the second strongest-performing housing markets in Australia, next only to Perth.
According to KPMG’s chief economist, Dr. Brendan Rynne, price growth was expected to slow down but government policies and worsening inflation pushed prices higher. Strong population growth across Southeast Queensland and chronic housing undersupply add affordability pressure.
Brisbane’s median house value increased by 14% from the previous year, reaching $1.036 million in December 2025. The median price is now 8.9 times the average income. Mortgage repayments consume over 50% of the average household income. While state and federal governments have expressed commitment to large-scale housing supply targets, delivery times remain uncertain and shortages persist.
Historically, when Brisbane’s housing market enters a strong growth phase, Ipswich and other connected SEQ markets follow. As Brisbane’s affordability deteriorates, buyer and investor demand increasingly spill into adjacent centres including Ipswich CBD, North Ipswich, East Ipswich, and Brassal. Over the last year, annual median house price in these pockets rose by 12% to 15%. Even so, broader Ipswich LGA median values remain comparatively lower at $720,000 to $750,000. This pattern aligns with the long-standing market dynamics where commuting connectivity and relative affordability drive capital growth beyond Brisbane.
This outlook reinforces the demand for affordable accommodation like rooming houses. As property prices continue to rise faster than wages, more people can no longer afford traditional housing. At the lower end of the housing market, shared accommodation becomes a practical and necessary choice.
Entry-level price growth and initiatives like the 5% deposit scheme may enable some renters to buy, but these also push prices higher for everyone else. A larger pool of tenants, including single-income households and essential workers, seek shared, affordable and well-located accommodations close to employment centres.
Critically, KPMG’s forecast delivers dual benefits for investors. Strong capital growth improves equity position and refinancing capacity while reducing downside risk. This means that rooming house investors can hold high cash flow assets while benefiting from Brisbane’s broader price appreciation.
In a market shaped by chronic undersupply and declining affordability, rooming houses absorb market pressure. For investors seeking resilient income with capital preservation, this Brisbane forecast presents a critical two-year opportunity window in Australia’s second strongest growth market and surrounding high-growth areas.
Read the full KPMG report here:
ROOMING HOUSE DEAL:
In line with this forecast, we’re releasing a rare Brisbane rooming house opportunity less than 10km from the CBD, delivering $107K+ per annum and positioned to benefit from this critical two-year window.
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