Mid-Year Property Update for Brisbane Landlords: What You Need to Know

We're halfway through 2025, and Brisbane's rental market is still delivering solid returns for landlords and property investors. While tenant demand remains high, the market is evolving. Understanding these shifts is key to staying ahead.
 

In this mid-year review, we're diving into rental yields, suburb performance, interest rate trends, recent tenancy law reforms, and how a great property manager can help you navigate it all.

 

Market Overview: Stability with Selective Growth

Brisbane’s property market has remained resilient in 2025, with median dwelling values up around 7% year on year. While house prices have grown steadily, unit values have outpaced them due to affordability and lifestyle appeal.
 

For investors, this has translated into rising interest in inner-city units, continued tenant demand in lifestyle suburbs, and solid rental yields averaging 4.5 percent for units and 3.5 percent for houses.

 

Rental Demand Remains Tight

Citywide vacancy rates remain below 1 percent, with inner-city areas like Newstead and Fortitude Valley seeing rates as low as 0.4 percent. Properties are leasing quickly, with many applications coming through within days of listing.
 

Brisbane’s population growth, the return of international students, and a slowdown in new housing supply are all contributing to ongoing rental pressure.

 

Interest Rate Environment: More Predictable, Still High

The RBA has held the cash rate steady through the first half of the year, giving landlords more certainty in managing cash flow. While rates remain higher than the ultra-low levels of 2021 and 2022, stability has restored some investor confidence.
 

Many landlords are refinancing or reassessing loan structures as fixed-rate periods expire, aiming to reduce repayments and maintain healthy returns.

 

Legislation Updates: Stage 2 Rental Reforms (May) & Property Law Act (August)

From 1 May 2025, Stage 2 of Queensland’s rental reforms came into effect. Key changes include:

• A standardised application and tenant modification request process
• Requirements to disclose any rent-related incentives
• Stricter rules around collecting, storing and disposing of tenant information
   

From 1 August 2024, further changes under the Property Law Act 2023 will apply. These include:

• Landlords must formally respond to tenant requests, such as pet approvals, subletting, lease transfers and structural modifications, using a prescribed decision notice
• New breach notices (Form 7) must be issued using the official template and shared with designated parties when required
   

Staying compliant is essential. A knowledgeable property manager can guide you through these changes — from updating documentation to responding correctly to tenant requests.

For full details on the reforms, landlords can refer to the RTA website or speak with their property manager for tailored advice.

 

Top-Performing Suburbs for Rental Properties

Inner-city units: Newstead, Fortitude Valley, West End, and Teneriffe are achieving high yields close to 5 percent, with low vacancy rates under 0.6 percent. These suburbs are particularly popular among students and professionals.

Middle-ring suburbs: Clayfield, Bulimba, Coorparoo, and Ashgrove are consistently in demand due to their family-friendly appeal, good schools, and access to amenities. Rental yields remain stable, and tenant turnover is low.

Outer suburbs: Logan and Ipswich offer more affordable entry points but are seeing slower rental growth and slightly higher vacancy rates around 1.2 percent. These areas remain viable but more competitive for landlords.

Bayside suburbs: Wynnum, Manly, and surrounding coastal areas continue to perform well. These suburbs attract long-term tenants looking for lifestyle and space, and landlords benefit from low vacancy rates, solid rental income, and minimal turnover.

 

Emerging Investor Trends

Properties with modern upgrades are leasing significantly faster. Features like air conditioning, updated kitchens, and low-maintenance yards are now expected by tenants.

There is also growing interest in energy-efficient and sustainable housing, with renters actively seeking properties that help reduce utility costs.

Some landlords are exploring short-term leasing options to boost returns. However, upcoming legislative changes may limit the flexibility of these strategies, making professional advice even more valuable.

 

What to Watch in the Second Half of 2025

Keep an eye on:

• Interest rate changes that could affect investor confidence and borrowing behaviour
• Population growth and migration trends that continue to drive rental demand
• Infrastructure projects such as Brisbane Metro and Olympic upgrades that may boost growth in key corridors
• Ongoing rental law reforms that shape how properties must be managed and maintained

Staying informed and compliant will be essential, and a proactive property manager can help ensure you're always one step ahead.

 

Need a Rental Health Check?

With vacancy rates low and demand strong, Brisbane continues to offer attractive opportunities for property investors. But success depends on staying informed, compliant, and responsive to market changes.

That’s where we come in. At Aurora Property, our experienced team is here to help you:

• Understand your suburb's performance
• Maximise your rental income
• Navigate legislative changes with confidence

Whether you're managing one property or an entire portfolio, we’re here to support your goals with local knowledge and tailored advice.

Contact Aurora Property today for a rental performance review and personalised property strategy. Let’s make sure your investment is working hard for you.