Brisbane Property Market Hits Rough Patch as Confidence Wavers

Brisbane's property market is showing clear signs of strain, with auction clearance rates dropping sharply to around 30 per cent — a dramatic fall from 56 per cent recorded at the same time last year — as a combination of economic pressures and policy uncertainty keeps buyers on the sidelines.

The slowdown has drawn attention following comments by prominent Sydney auctioneer Tom Panos, who described a recent weekend as the worst of his 30-year career after not a single bidder showed up across six auctions. While Sydney's woes are distinct from Queensland's conditions, the sentiment is spreading, and Southeast Queensland is not immune.

Antonia Mercorella, CEO of the Real Estate Institute of Queensland, says the drop in confidence is the defining factor right now. "Confidence is key when it comes to the property market, and what we're seeing is a pretty massive dent in it," she told 4BC Brisbane. She attributes the cooling to a build-up of pressures — rising interest rates, cost-of-living strain, global uncertainty — all compounded by federal budget announcements that have particularly dampened investor activity.

The result is a market in a kind of holding pattern. Buyers are hesitant, unsure whether conditions will deteriorate further before improving. Sellers are facing longer campaigns and fewer bidders. And some owner-occupiers who entered the market with minimal deposits under low-equity guarantee schemes now find themselves with mortgages that exceed the current value of their properties — a precarious position if their financial circumstances change.

Mercorella is quick to point out, however, that Brisbane has never been as auction-dependent as Sydney or Melbourne. At the peak, Brisbane recorded fewer than 200 properties going to auction per week, compared to upwards of 700 in each of those southern capitals. The lower auction culture means clearance rate comparisons need to be made carefully — but she stresses the percentages are still meaningful, particularly given that volumes have also fallen.

Despite the current hesitation, both Mercorella and local commentators see structural reasons why the Brisbane market is unlikely to remain depressed for long. Queensland continues to attract strong interstate migration, and that wave is expected to intensify in the lead-up to the 2032 Olympic Games. Established housing stock remains tight, and new supply is not keeping pace with demand.

"When you think about all of those things, it's kind of impossible to see how much longer we can just sit put," Mercorella said. The consensus is that the market is pausing, not collapsing — but for first-home buyers and investors alike, the short-term picture is one of caution and wait-and-see.

For those already in the market, particularly recent buyers with limited equity buffers, the coming months will require careful financial management as interest rate uncertainty continues to linger.