Sunshine State’s property market shows no signs of slowing as prices rise across Queensland

In the December 2023 quarter, Queensland’s property prices continued their upward trajectory, setting new records across both the housing and unit markets. According to the latest data from the Real Estate Institute of Queensland (REIQ), median house prices in the state rose by 3.88 percent over the quarter and 6.04 percent over the year. Similarly, the median unit price increased by 3.4 percent over the quarter, amounting to an 8.11 percent rise annually.

Brisbane led the surge in house price growth, with a notable increase of 6.91 percent, bringing the median to $1,125,000. Ipswich, a neighboring city, matched this growth rate, albeit with a more affordable median price of $620,000. The Gold Coast also made headlines by reaching the million-dollar median price mark for the first time, following a five percent increase over the quarter.

Regional areas of Queensland were not left behind, as cities like Toowoomba, Rockhampton, Bundaberg, and Townsville all registered significant growth over the year, edging closer to new price brackets.

Antonia Mercorella, CEO of REIQ, commented on the sustained growth, stating, “Property prices in the Sunshine State have continued to steadily track in a northerly direction in the December 2023 quarter, rounding out another impressive growth year.” She noted, however, the mixed feelings that come with rising prices, acknowledging while it’s a cause for celebration for property owners, it presents challenges for buyers, especially first-time buyers, due to increased competition and diminishing value.

Mercorella highlighted the market’s challenges, including a supply shortage and a lack of housing diversity, notably at the affordable end of the market. She also pointed out the overflow at open homes for listings that address this gap. “In lifestyle locations like the Gold Coast, that just surpassed a $1 million house median, most of the stock coming to market is set to cater to luxury living, further perpetuating a high-end, high median market,” Mercorella added.

The REIQ data revealed that Brisbane, the Gold Coast, and Moreton Bay recorded the highest volumes of house sales over the quarter, with Townsville standing out regionally. In terms of annual growth, regional Queensland boasted strong performances, particularly Toowoomba, Bundaberg, and Rockhampton. The unit market also showed vibrancy, with Brisbane and the Gold Coast leading in sales volume, while regions like Mackay and Townsville posted significant growth rates.

As Queensland’s property market continues to thrive, the perspectives on its future remain varied. Homeowners welcome the increase in property values, whereas prospective buyers face more challenges, exemplifying the complex dynamics of real estate in the Sunshine State.