Brisbane’s housing market continued to record price growth in May 2026, even as signs emerged that buyer activity is beginning to slow.According to property research firm Cotality, the city’s median home value rose by 0.9 per cent to almost $1.13 million, while Sydney and Melbourne experienced declines of 0.9 per cent and 0.8 per cent respectively.

Despite Brisbane narrowing the gap with Sydney, industry experts believe Sydney is likely to remain Australia’s most expensive housing market over the long term because of its higher household incomes.Property professionals reported a noticeable cooling in market conditions on the ground.Buyers agent Scott McGeever said attendance at open homes had fallen, listings had increased, and sellers were working harder to attract purchasers.

He noted that many buyers appeared cautious amid economic uncertainty and recent federal property tax changes aimed at improving housing affordability.Even so, Brisbane’s market has remained relatively resilient due to a shortage of housing supply.Cotality’s Gerard Burg said limited stock continues to support prices, although growth momentum is weakening.Unit prices outperformed houses during May, rising 1.3 per cent compared with 0.8 per cent for houses.Over the previous year, suburbs including Beaudesert and Loganlea recorded some of the strongest growth rates.The city’s rental market also remains under pressure.House rents increased 6.7 per cent over the past year, while unit rents rose 6.2 per cent.Analysts warned that ongoing rental increases could force more people into share housing or multi-generational living arrangements.Economists also suggested recent negative gearing reforms could reduce the number of landlords and further tighten rental supply.

Despite indications of a cooler market, some experts believe Brisbane could continue moving closer to Sydney’s housing values if supply constraints persist.