Regional centres record significant gains while Greater Brisbane moderates growth
Queensland's residential property market has experienced continued growth in the third quarter of 2025, with data from the Real Estate Institute of Queensland (REIQ) pointing to an acute shortage of available housing as the primary driver of rising values.
The latest quarterly report covering July through September indicates widespread price acceleration, though growth patterns diverge significantly between coastal and regional markets.
During the three-month period, the statewide median house price reached $895,000, representing a 4.83% quarterly increase and 12.67% annual appreciation. The apartment sector performed similarly, with median values climbing 3.57% over the quarter to $725,000 and rising 15.22% annually.
"Across every corner of the state, prices are climbing in a concerning but classic supply story – when demand outstrips new housing delivery, prices inevitably move higher," said Antonia Mercorella (pictured right), chief executive of REIQ.
"The data shows that regional Queensland is driving some of the most dramatic price movements, while Greater Brisbane and its surrounding LGAs remain solid but less explosive. The particularly strong regional gains highlight that both investors and owner-occupiers are looking beyond the southeast corner for relative value and growth."
Regional hotspots
Regional centres have demonstrated exceptional performance. Townsville led annual growth at 23.3%, while Mackay increased 22.33% and Gladstone rose 21.85%. Rockhampton recorded both a notable quarterly surge of 7.27% and annual gains of 21.11%. In Greater Brisbane, growth has radiated outward from the capital, with Ipswich appreciating 13.6% over twelve months.
Across the state, six regional markets – Rockhampton, Noosa, Brisbane, the Gold Coast, the Sunshine Coast and the Redlands – now record median house values exceeding $1 million, with Noosa reaching $1.5 million.
Queenland draws investor interest
Australian Bureau of Statistics lending data has revealed increased investor participation in Queensland's property market, with investor loans rising 11.9% during the September quarter. Investors now represent approximately two in every five new home loans in the state.
"In a state like Queensland that relies heavily on investors to provide rental properties, it's important to remember that investor participation is essential to achieve a healthy rental market," Mercorella said. "However, unless we see overall housing supply levels improve alongside returning investor confidence, it can lead to the inevitable clash between investors and prospective owner-occupiers – and that is why the real solution must lie in expanding supply."
First Home Guarantee comes into force
The Federal Government's expanded First Home Guarantee commenced on 1 October, following the reporting period. This initiative is expected to provide support for owner-occupier entry into the market, though first-home buyer lending in Queensland declined marginally during the quarter.
"The focus should be squarely on unlocking more homes – not constricting one segment of the market," Mercorella stated, cautioning against overly restrictive investor lending rules that could damage the rental sector. "We need a balanced approach that supports both rental supply and pathways to ownership."
The apartment sector has become increasingly attractive to first-time purchasers owing to more accessible price points relative to detached dwellings. Rockhampton recorded the strongest quarterly performance at 19% growth, though Noosa's apartment median jumped 22.8% to $1.15 million. Annually, Rockhampton units appreciated 30%, whilst Townsville achieved 25% growth.
A 'fiercely competitve' market
Properties across Queensland are moving swiftly to sale. Houses sold at a statewide median of 22 days on market, with Brisbane and Greater Brisbane achieving similar timeframes. Rockhampton and Mackay recorded the quickest sales at 13 days. Units are shifting equally rapidly at a statewide median of 21 days, with Brisbane units transacting in merely 17 days.
"Queensland's housing market remains remarkably resilient and fiercely competitive, but price growth without sufficient new supply only deepens affordability challenges," Mercorella said.
"If we want a future where home ownership remains attainable, governments must stay firmly committed to driving new housing delivery and supporting first home buyers."
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