Queensland property market booms as house prices jump 5.9 per cent

Queensland’s property market recorded exceptional growth in the December quarter of 2024, with house prices surging 5.9 per cent to reach a median of $810,000.

This quarterly increase represents the strongest growth rate since early 2022 during the post-pandemic property boom, according to new data from the Real Estate Institute of Queensland (REIQ).

Unit prices across the state also showed solid performance, rising 2.38 per cent to $645,000, though this marks a slowdown from the stronger growth seen earlier in 2024.

“What is evident from the data is that the growing local economies of areas such as Ipswich, Moreton Bay, Logan, Toowoomba, Townsville, Rockhampton, Gladstone and Mackay, among other regional areas, are sustaining strong housing markets,” said REIQ CEO Antonia Mercorella.

While Brisbane’s house prices increased by just 1.25 per cent, regional areas and Greater Brisbane local government areas delivered the strongest performance.

“It also suggests that demand is gravitating towards more affordable housing, as people search for value outside of the capital city, a trend further supported by stronger price growth in Brisbane’s surrounding regions,” Ms Mercorella said.

The data revealed Rockhampton led regional growth with house prices jumping 7.14 per cent to $525,000, followed by Mackay (6.19 per cent to $600,000) and Townsville (5.66 per cent to $560,000).

Townsville stood out with both high sales volume (1,102) and significant price growth of 22.62 per cent over the year.

The Gold Coast also performed strongly with prices rising 4.55 per cent to $1.15 million, representing a 14 per cent annual increase.

The REIQ attributes Queensland’s property market resilience to strong economic and demographic fundamentals.

“Queensland’s Gross State Product (GSP) growth of 2.1 per cent outpaced Australia’s Gross Domestic Product (GDP) growth of 1.4 per cent in 2023-24,” Ms Mercorella said.

“Queensland’s population growth of 2.3 per cent outdid the nation’s 2.1 per cent in the year to last June, particularly our strong net interstate migration of almost 30,000 people – the highest population boost among the states, and more than triple Western Australia’s gains.”

The average time to sell a house in Queensland was 21 days, with Gladstone seeing a dramatic reduction to just 12 days.

In the unit market, the highest growth was recorded in Gladstone (15.12 per cent to $354,000), Townsville (11.76 per cent to $380,000), and Fraser Coast (8.83 per cent to $530,000).

Despite the positive results, the REIQ expressed concern about housing supply lagging behind demand.

Private dwelling completions in the September quarter of 2024 remained below historical averages at 8,128 dwellings, while the total annual completions of around 32,700 fell well short of the 49,000 required to meet national housing targets.

“Queensland property prices held firm despite higher for longer interest rates, and we expect they will be invigorated by the recent cash rate cut and associated confidence,” Ms Mercorella said.