Despite a widespread slowdown in property prices across many regions, Queensland’s real estate market has continued to show strong performance in the December quarter.
The Real Estate Institute of Queensland (REIQ) reported significant price increases, particularly in key suburban areas that defy the broader market trends.
The median sale price for houses in Queensland, soon to host the 2032 Olympic Games and known for its lifestyle appeal, experienced a notable rise of 5.9% to reach $810,000 during the last quarter, marking the highest quarterly increase since the early 2022 post-pandemic surge.
In contrast, unit prices saw a more modest rise of 2.38% to $645,000, cooling slightly from earlier in the year.
REIQ CEO Antonia Mercorella (pictured) highlighted the performance across various regions.
“The growing local economies of areas such as Ipswich, Moreton Bay, Logan, Toowoomba, Townsville, Rockhampton, Gladstone, and Mackay are sustaining strong housing markets,” Mercorella said.
This growth is driven by the demand for more affordable housing outside the capital, a trend supported by significant price increases in Brisbane’s surrounding regions.
The robustness of Queensland’s property market is supported by strong economic and demographic fundamentals.
The state’s gross state product (GSP) growth outpaced the national average, and with Queensland experiencing the highest population boost among the states, demand for housing remains high.
“This high net migration as part of our population mix is significant because it’s made up of more adults, compared to more families from natural increase, and this means a higher proportion of people seeking their own households,” Mercorella said.
However, Mercorella cautioned that to maintain this growth, there is a need for more focused policy attention on housing supply.
“The supply side is lagging behind the demand for properties, and new housing needs to stay a policy priority,” she said.
In the previous quarter, dwelling completions were below the historical average, underscoring the need for increased housing construction to meet ongoing demand.
The most active markets for house sales this quarter included Brisbane, the Gold Coast, Moreton Bay, and the Sunshine Coast, with notable sales volumes also in Logan and Ipswich.
Regional cities like Rockhampton and Townsville not only offered the most affordable options but also showed remarkable growth rates of 7.14% and 5.66%, respectively.
Despite challenges such as high interest rates, the recent cut to 4.1% – down from the 4.35% set in November 2023 – is expected to boost market confidence.
Queensland’s property market is not only holding strong but also expected to see continued growth, driven by sustained demand and limited housing supply.
The unit market also showed significant activity, with Brisbane and the Gold Coast leading in sales volumes.
Although some regions like Mackay and Rockhampton experienced quarterly price dips, annual growth remained strong across the board. The fastest unit sales occurred in Ipswich, Moreton Bay, and Toowoomba, all tying at an impressive 13 days on the market.
