QUEENSLAND’S property market closed out 2024 with significant price growth, demonstrating resilience despite ongoing supply constraints.
The latest figures from the Real Estate Institute of Queensland (REIQ) show that in the December quarter, the median house price surged by 5.9 per cent to $810,000 – a rate of growth not seen since the early 2022 post-pandemic boom. Unit prices also increased, rising by 2.38 per cent to a median of $645,000, though at a more moderate pace compared to the sharp price jumps earlier in the year.
REIQ CEO Antonia Mercorella noted that while Brisbane’s house prices rose modestly by 1.25 pr cent, the real momentum was in outer regions and key areas such as Ipswich, Moreton Bay, Logan, Toowoomba, and major regional centres like Townsville, Rockhampton, Gladstone, and Mackay. This trend suggests affordability remains a driving force in buyer decisions, with many turning to areas outside Brisbane’s core to find better value.
“While Brisbane’s ‘Cinderella story’ is far from over, what we are seeing is that Queensland’s regional and Greater Brisbane markets are proving to be the real property powerhouses,” Ms Mercorella said. “People are looking for affordability and lifestyle, and they’re finding it in these outer regions where local economies are growing and housing remains relatively accessible.”
Brisbane’s housing market remained steady, with a median house price of $1.125 million and a strong sales volume of 3438 transactions during the quarter. On average, properties in Brisbane spent just 20 days on the market, reflecting ongoing demand and limited supply. Meanwhile, Redland City experienced one of the strongest growth rates in Greater Brisbane, with median house prices climbing 4.56 per cent to $941,000. The region remained highly sought after by buyers seeking a balance between coastal living and city accessibility, with homes selling at a healthy pace.
Despite Queensland’s strong economic fundamentals, supply remains a critical issue. The state’s Gross State Product (GSP) grew by 2.1 per cent in the 2023-24 period, outpacing national GDP growth of 1.4 per cent. Population growth also continues to play a major role, with Queensland’s 2.3 per cent increase surpassing the national rate of 2.1 per cent, driven by a net interstate migration of nearly 30,000 people – the highest in Australia. However, housing construction has not kept up with demand. In the September quarter of 2024, private dwelling completions sat at 8128 – below the historical average of 8500.
In an article published in early March, Ms Mercorella reiterated concerns about housing supply, stating, “Queensland property has demonstrated remarkable resilience in the face of economic pressures, but we cannot ignore the fact that supply is failing to keep up with demand. It is absolutely essential that housing remains a policy priority to ensure affordability and accessibility for all Queenslanders.”
As prices continue to rise, Redland City is on the verge of becoming another million-dollar median market, following in the footsteps of Brisbane, the Gold Coast, and the Sunshine Coast. The local rental market has also remained strong, with houses in Redland Bay fetching an average of $700 per week for a four-bedroom home, delivering an annual rental yield of 4.2 per cent. Units in the area rent for $425 per week, with a yield of 3.8 per cent.
With supply struggling to meet demand, the market outlook remains positive for property owners but challenging for buyers and renters. Continued migration into Queensland, coupled with strong economic performance, will likely keep housing prices firm in 2025. However, without significant policy efforts to boost new housing supply, affordability concerns could intensify.
