Australian REITs: Brisbane and Melbourne residential - the best and the worst

Research evidence excerpt

Australian REITs: Brisbane and Melbourne residential - the best and the worst

J P M O R G A N Asia Pacific Equity Research

25 June 2026

Australian REITs

Brisbane and Melbourne residential - the best and

the worst

We recently hosted two residential property tours in the key Brisbane and Australia

Melbourne markets to gauge sales and pricing trends post the RBA rate hikes and

federal budget changes around CGT and negative gearing. We visited listed REIT

residential projects across master-planned communities, land lease, build-to-rent Richard Jones, CFA AC

and build-to-sell apartments. The Brisbane residential market remains a standout (61-3) 9633-4038

richard.b.jones@jpmorgan.com

performer, with continued strong price increases yet to dampen demand driven by

Connor Eldridge

limited supply and strong migration. Construction costs are a challenge, but for (61-2) 9003-6415

now price growth is at least 2x cost growth. Residential revenue is largely locked connor.eldridge@jpmorgan.com

in for the listed REITs in Queensland for FY27. The Melbourne residential market Adam West

is materially softer, but is perhaps more resilient than we expected, particularly in (61-2) 9003-8010

the land market. Melbourne is seeing elevated townhouse and builder sales as a adam.west@jpmorgan.com

proportion of total sales volumes, tapping into the price conscious buyers while J.P. Morgan Securities Australia Limited

incentives remain prevalent in the market. Melbourne sales rates over the

remainder of 2026 will be relatively important for FY27 residential settlements,

with a shorter sale to settlement timeframe than in Brisbane. Table 1: SEQ & VIC assets visited

State REIT Lots

• Brisbane dwelling values increased 19% in the 12 months to May-26 and Master Planned Communities