With Australia’s property market rebounding across multiple states, savvy investors are once again asking the age-old question: Where should I buy next? In 2025, Melbourne and Brisbane remain two of the hottest contenders — but they each offer vastly different investment landscapes. Whether you’re a first-time buyer, SMSF investor, or UHNW client, here’s how these two powerhouse cities compare right now.
Population Growth & Demand
Melbourne
Victoria’s capital is still absorbing its post-pandemic population loss, but 2024 saw a surge in overseas migration and interstate relocations, particularly to Melbourne’s outer growth corridors. The city’s population is projected to overtake Sydney by 2031, with consistent demand in areas like Werribee, Tarneit, Fraser Rise, and Mambourin—ideal zones for house-and-land investments under $850K.
Brisbane
Brisbane continues to benefit from the Olympics effect, infrastructure spend, and a migration boom from southern states. Suburbs like Ripley, Springfield Lakes, Logan Reserve, and coastal regions toward the Gold Coast are drawing both investors and lifestyle buyers. Demand remains high, particularly for detached homes and boutique new apartments.
✅ Winner: Tie — Melbourne for long-term density play, Brisbane for short-to-mid term growth.
Capital Growth & Rental Yields (2025 YTD)
| City | Median House Growth (12 months) | Rental Yield Avg (House) |
|---|---|---|
| Melbourne | 4.3% | ~3.7% |
| Brisbane | 8.1% | ~4.5% |
Brisbane’s rental crisis has created strong yields, with vacancy rates hovering below 1%. Melbourne offers better long-term infrastructure and employment diversification, but investors must be selective.
✅ Winner: Brisbane edges ahead for rental returns; Melbourne suits capital growth and long-term equity play.
Infrastructure & Development Pipeline
Melbourne
From the Suburban Rail Loop to airport rail connections and massive growth in the western corridor, Melbourne is building at scale. This makes areas like Rockbank, Melton South, and Wyndham Vale increasingly connected and investable.
Brisbane
With major projects like Cross River Rail, Queen’s Wharf, and Olympic infrastructure, Brisbane is catching up fast. It also benefits from lifestyle migration and more flexible urban density regulations.
✅ Winner: Melbourne for long-term infrastructure investment; Brisbane for shorter timelines to completion.
Affordability & Entry Points
- Melbourne: From $650K in outer suburbs for house & land packages; luxury stock ranges from $2M to $25M in blue-chip areas.
- Brisbane: Entry-level house-and-land from ~$600K in southeast growth corridors; premium homes and penthouses still 20–30% cheaper than Melbourne equivalents.
✅ Winner: Brisbane wins on affordability, but Melbourne offers a deeper and more diverse property pool.
Who Should Buy Where in 2025?
| Buyer Type | Best Fit | Why |
|---|---|---|
| First Home Buyers | Melbourne West | Stamp duty concessions + new land availability |
| SMSF Investors | Brisbane | Higher rental yields & affordability |
| UHNW Offshore Buyers | Melbourne East | Blue-chip suburbs, luxury new apartments, prestige |
| Lifestyle Investors | Gold Coast | Beach proximity + tax-effective structuring potential |
The Verdict
There’s no clear-cut winner—only a better match for your goals. Melbourne remains a powerhouse of economic and population growth with long-term infrastructure upside, while Brisbane is surging on lifestyle appeal, affordability, and short-term returns.
If you’re seeking to build long-term wealth, Melbourne’s west is hard to beat. If you want cash flow with capital growth potential, Brisbane’s fringe suburbs are a goldmine.
Want tailored insights based on your strategy, budget, and goals?
Our team offers personalised project recommendations—whether you’re onshore, offshore, self-employed, or buying via SMSF.
