Brisbane and Perth have outperformed Sydney and Melbourne on price growth since 2021, driven by interstate migration, relative affordability, and sector-specific economic tailwinds. As we move through 2026, both cities continue to attract national attention — but the drivers and risks differ. Here is the detailed analysis.
Brisbane: Infrastructure Spend and the 2032 Olympics Pipeline
Brisbane's median house price reached approximately $870,000 in February 2026, representing growth of approximately 42% since early 2021. The city has benefited from strong interstate migration (particularly from Sydney and Melbourne), a relative affordability advantage, and massive infrastructure investment ahead of the 2032 Olympic Games.
Key infrastructure projects include Cross River Rail (due for completion in 2026), the Brisbane Metro, Queens Wharf development, and the Olympic-related transport and venue upgrades across Greater Brisbane and the Gold Coast. These projects are creating jobs, improving connectivity, and enhancing the long-term liveability of the region.
The rental market remains exceptionally tight, with vacancy rates below 1% across most of Greater Brisbane. This has driven rental yields to approximately 3.5% for houses and 5.2% for units — among the highest in any Australian capital city.
Olympics Infrastructure Investment
The Queensland Government has committed over $7 billion to Olympic-related infrastructure. Historical precedent (Sydney 2000, London 2012) shows that host cities experience sustained price growth in the decade before and 2–3 years after the games. Brisbane is currently in the prime investment window.
Perth: Resource Sector Strength and Population Growth
Perth's median house price reached approximately $740,000 in February 2026, recovering strongly from its 2019 low point. The city has benefited from high commodity prices (iron ore, lithium, LNG), strong population growth driven by both interstate and overseas migration, and a prolonged period of under-building that has created genuine housing supply pressure.
The resources sector continues to drive high incomes in Perth, with FIFO (fly-in, fly-out) workers contributing to strong demand in both the purchase and rental markets. Rental vacancy rates are below 0.8% in most Perth suburbs, pushing rental yields to approximately 3.8% for houses — the highest of any mainland capital.
Key growth areas include the northern corridor (Joondalup to Two Rocks), the Mandurah–Rockingham southern corridor, and infill developments in middle-ring suburbs like Scarborough, Karrinyup, and Canning Vale.
Investment Outlook: Is There Still Value in Brisbane and Perth?
Both cities have experienced significant price growth, and the natural question is whether this growth can continue. The answer lies in supply versus demand fundamentals.
Brisbane's building approvals have increased but remain below the level needed to meet population growth. The 2032 Olympics ensures continued infrastructure investment for at least another 6 years. Interstate migration, while slowing, remains net positive. The outlook is for continued moderate growth (4–6% annually) rather than the rapid growth of 2021–2023.
Perth's outlook is tied to commodity prices and the resources sector. While lithium prices have moderated, iron ore remains strong, and the LNG sector continues to expand. Housing supply is constrained by both land availability and construction labour shortages. Continued moderate growth (3–5% annually) is the consensus view.
Both cities offer better rental yields than Sydney and Melbourne, making them attractive for cash-flow-focused investors. The key risk in both markets is a significant downturn in their respective economic drivers — the Olympics pipeline for Brisbane and commodity prices for Perth.
Diversification Matters
Concentrating all your property investments in one city exposes you to that city's specific economic risks. A diversified portfolio across two or three cities reduces concentration risk and smooths overall portfolio returns.
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About the Author
Sakib Manzoor
Senior Finance Wellness Expert
Sakib Manzoor is the founder of Secure Finance and brings extensive experience in Australian mortgage broking and financial wellness. Specialising in helping clients achieve their property finance goals through personalised strategies and expert guidance, Sakib is FBAA accredited and committed to providing clear, actionable advice. All content is written to meet Australian regulatory standards and is regularly updated to reflect current market conditions.