Competing With First Home Buyers Under $1 Million in Brisbane

The $1 million mark is not just a round number in Brisbane. It is the price cap on the federal 5% Deposit Scheme for Queensland capital cities and regional centres (Housing Australia, 2025), and it sits below Brisbane’s median house value of $1,180,552 (Jennison, 2026). That puts a large share of first home buyers, investors and upgraders in the same slice of the market, chasing the same stock.

Why is the sub-$1 million market so crowded?

Since 1 October 2025, first home buyers can buy with a 5% deposit and no lenders mortgage insurance, with no income caps and no limit on places (Housing Australia, 2025; Prime Minister of Australia, 2025). The cap for Brisbane is $1 million.

The effect showed up quickly. In the December quarter 2025, homes priced under the scheme caps rose 3.6% nationally, compared with 2.4% for homes above them (Cotality, 2026a). At the same time, investors made up 41% of mortgage demand, many of them targeting the same lower price points (Cotality, 2026a).

In Brisbane, that means units, townhouses and houses in the middle and outer rings. The city’s median unit value was $854,721 at the end of August 2026 (Jennison, 2026), comfortably inside the cap.

What has changed in 2026?

The competition has thinned.

• First home buyers are hesitating. In Brisbane, first home buyers have been “surprisingly inactive”, particularly at the affordable end, with many choosing to wait for further falls (Jennison, 2026). Nationally, first home buyer loan commitments fell 2.9% in the June quarter (Australian Bureau of Statistics [ABS], 2026).
• Investors have pulled back harder. Queensland investor loan commitments fell 10.1% in the June quarter (ABS, 2026). Investors buying established homes after 12 May 2026 also lose negative gearing from July 2027, which weighs on demand for the same properties first home buyers want.
• Stock is building up. Brisbane homes are taking a median 38 days to sell, up from 17 a year earlier, and total listings are 60.4% higher than a year ago (Cotality, 2026c).
• The affordable end is no longer immune. Brisbane’s value falls are more evenly spread across price segments than in Sydney or Melbourne (Cotality, 2026b), and the slowdown has reached the more affordable end of the market (Jennison, 2026).

Where Queensland policy points first home buyers

Queensland’s incentives favour new homes:

• Stamp duty: Abolished for first home buyers of new homes since May 2025, now locked into law (Queensland Government, 2026). For established homes, the first home concession removes duty up to $700,000 and phases out below $800,000 (Queensland Revenue Office [QRO], 2026).
• First Home Owner Grant: $30,000 for new homes valued under $750,000 (Queensland Government, n.d.).

So, the strongest support goes to new builds, while many first home buyers still prefer established stock. Above $800,000, the first home concession falls away on established homes, which narrows a first home buyer’s duty advantage over other buyers.

How to compete in this price bracket

Have finance settled before you bid. A first home buyer on the 5% Deposit Scheme with pre-approval moves quickly. Match that with a current pre-approval at today’s rates.

Know where buyers are crowded, and where they are not. Properties just under $1 million draw the most scheme buyers. Stock between $1 million and $1.1 million can face less competition, if your budget stretches.

Use the slower market. With more listings and longer selling times, vendors are more open to negotiating on price, settlement terms and finance clauses.

Do your due diligence. The sub-$1 million bracket has the widest spread of quality. Flood overlays, body corporate health and building condition decide whether a “bargain” is one.

Look at the land. A townhouse and a house can sit at the same price. Land appreciates while buildings depreciate, so the land component deserves as much attention as the floor plan.

Frequently asked questions

What is the 5% Deposit Scheme price cap in Brisbane? $1 million for Queensland capital cities and regional centres, including the Gold Coast and Sunshine Coast. Other areas of Queensland have a $700,000 cap.

Do first home buyers pay stamp duty in Queensland? Not on new homes. On established homes, the first home concession removes duty up to $700,000 and phases out below $800,000.

Are investors still buying under $1 million in Brisbane? Yes, but less than before. Queensland investor loan commitments fell 10.1% in the June quarter 2026.

This article is general information only and does not consider your personal circumstances.