Brisbane Property Market 2026: What APRA Changes Mean for Prices

Published: January 21, 2026
Reading Time: 7 minutes
Location Focus: Brisbane, QLD

Brisbane's Market Momentum

Brisbane's property market has been one of Australia's strongest performers in recent years. Prices have grown more than 50% since COVID, outpacing most other capital cities. In December 2025 alone, Brisbane prices rose 1.6%, demonstrating continued momentum heading into 2026.

This strong performance raises an important question: how will APRA's new debt-to-income lending limits affect Brisbane's market? Will they cool prices or create new opportunities?

Understanding the Market Dynamics

Brisbane's strong performance reflects several underlying factors. First, the city is experiencing significant population growth as people relocate from Sydney and Melbourne seeking more affordable housing and lifestyle benefits. This migration creates sustained demand for properties.

Second, Brisbane's rental market is strong. Vacancy rates in many areas remain low, and rental yields are attractive compared to other capitals. This strength attracts investors, supporting demand.

Third, supply constraints exist in many Brisbane suburbs. Limited land availability and planning restrictions mean new supply can't keep pace with demand. This supply-demand imbalance supports price growth.

Fourth, Brisbane has strong economic fundamentals. The city is diversifying beyond traditional industries, with growing tech, healthcare, and professional services sectors. This economic strength supports employment and population growth.

APRA's Impact on Brisbane's Market

APRA's new DTI limit will have a modest impact on Brisbane's market. The rule limits high-DTI lending, which primarily affects investors with multiple properties. Most first-home buyers and upgraders won't be affected because they typically borrow at moderate DTI ratios.

However, the rule could have indirect effects. If investor lending becomes slightly more restricted, competitive pressure on first-home buyer properties might ease slightly. This could moderate price growth in some segments.

Additionally, the rule reinforces market stability. By preventing excessive leverage, APRA reduces the risk of a property market crash driven by overleveraged borrowers. This stability is positive for long-term market health.

What This Means for Different Buyer Types

For first-home buyers, APRA's changes are positive. The rule doesn't restrict first-home buyer lending, and it may reduce competitive pressure on entry-level properties. Additionally, the rule reinforces market stability, protecting first-home buyers' investments.

For upgraders, the changes are similarly positive. Upgraders typically borrow at moderate DTI ratios and won't be affected by the new limit. They benefit from market stability and potentially reduced competitive pressure.

For investors, the changes require slightly more strategic thinking. Sophisticated investors with multiple properties might find it slightly more difficult to access the highest DTI lending. However, most investors can continue to purchase properties by maintaining reasonable DTI ratios.

Brisbane Suburbs to Watch in 2026

Certain Brisbane suburbs are positioned for strong growth in 2026. Growth corridors like Waterloo Corner, Yarrabilba, and Flagstone are attracting first-home buyers and investors seeking value and growth potential. These outer-suburban areas offer more affordable entry points than inner-city suburbs while still benefiting from Brisbane's strong fundamentals.

Inner-city suburbs like Fortitude Valley, South Brisbane, and Newstead continue to attract investors seeking rental yield and capital growth. Strong rental demand in these areas supports investment returns.

Riverside suburbs like Bulimba, Teneriffe, and New Farm offer a balance of lifestyle appeal and investment potential. These areas attract both owner-occupiers and investors seeking premium properties.

Interest Rate Impact on Brisbane's Market

Brisbane's market will also be affected by interest rate movements. The RBA is expected to raise rates in February 2026, which could impact borrowing capacity and investor returns.

However, the impact is likely to be modest. A 0.25% rate increase reduces borrowing capacity by approximately 5%, but it doesn't eliminate demand. Buyers and investors will adjust their expectations and continue to purchase, albeit at slightly lower prices or with smaller deposits.

Additionally, rate increases typically slow price growth rather than causing price declines. Brisbane's strong fundamentals and supply constraints suggest prices will continue to grow in 2026, albeit at a more moderate pace than 2025.

The Broker's Role in Brisbane's Market

In Brisbane's competitive market, working with a mortgage broker becomes increasingly valuable. Brokers understand local market dynamics and know which suburbs are positioned for growth. They also understand how APRA's new rules affect different buyer types and can help you structure your borrowing strategically.

For first-home buyers, a broker can help you navigate government schemes specific to Queensland, access competitive rates, and find the right property in the right suburb. For investors, a broker can help you structure investment property loans to optimize returns within the new regulatory environment.

Taking Action in Brisbane

If you're considering purchasing a property in Brisbane, now is an excellent time to act. The market remains strong, interest rates are expected to rise, and APRA's new rules reinforce market stability. By getting pre-approved and working with a broker who understands Brisbane's market, you can position yourself to take advantage of opportunities in 2026.

First-home buyers should explore Queensland's first-home buyer schemes, which can help reduce deposit requirements and eliminate lenders mortgage insurance. Investors should consider their investment strategy and how APRA's new rules affect their borrowing capacity.

The Bottom Line

APRA's new DTI lending limits will have a modest impact on Brisbane's property market. The rule primarily affects high-DTI investor lending and won't restrict most first-home buyers or upgraders. Brisbane's strong fundamentals, supply constraints, and population growth support continued price growth in 2026, albeit at a more moderate pace than recent years.

By working with a mortgage broker who understands Brisbane's market and APRA's new rules, you can navigate the market effectively and achieve your property goals in 2026.

Ready to explore your Brisbane property options? Call Frontier Finance at 0413 798 731. Our brokers understand Brisbane's market and can help you navigate APRA's new rules while finding the right property for your goals.

Disclaimer: This article provides general market analysis and should not be considered personal financial advice or investment advice. Property prices are subject to many factors and past performance doesn't guarantee future results. Please consult with a qualified mortgage broker or financial advisor to discuss your specific property purchase or investment circumstances.