Queensland property prices soar amid supply constraints

Queensland’s property market continues to experience significant growth, with median house and unit prices rising across the state due to persistent supply pressures. The latest figures from the Real Estate Institute of Queensland (REIQ) reveal a substantial increase in property prices driven by a combination of chronic construction constraints and a listings drought.

The REIQ’s data for the December 2025 quarter shows that the statewide median house price rose by 6.11% over the quarter and by 13.7% year-on-year. Queensland’s unit market saw even more remarkable growth, with a 7% increase for the quarter and a 16.13% rise over the year.

Redlands LGA emerged as a standout performer, recording the highest quarterly growth for median house prices at 7.37%, bringing the median to $1,115,000. Meanwhile, Moreton Bay LGA led the unit market with a 12.14% increase, reaching $729,500.

Brisbane, the state’s capital, also witnessed a strong uplift, although it was outperformed by other regions. The city’s median house price rose by 4.07% to $1,405,000, while units saw a 7.14% increase to $825,000.

REIQ CEO Antonia Mercorella expressed concern over the ongoing housing supply shortfall in Queensland. “We’re still not building at the scale and speed we need to relieve the supply squeeze, and with every quarterly target not met, we’re falling further behind,” she said. Ms Mercorella highlighted the state’s need to build over 49,000 new dwellings annually under the National Housing Accord. However, only 34,000 new dwellings were completed over each of the last four quarters.

She further explained, “The pipeline is far from full. In January this year, there were only 3,600 building approvals, compared with approximately 4,100 required each month. Approvals are currently running at 42,700 per annum – which is approximately 13% below the target.”

The properties currently in the pipeline are heavily skewed towards high-end products, such as luxury apartments, due to high construction costs affecting feasibility. “The established housing market is still drip-feeding properties for sale but remains restricted as property owners hold on tight to their homes,” Ms Mercorella added.

Total listings during December 2025 showed a 25% fall in Brisbane compared to the previous year, while regional Queensland saw a 15% decrease. “These persistent supply pressures are what’s underpinning property price growth, along with ongoing demand-side factors such as high interstate migration, expected strong population growth, and rental market strain seeing tenants transition to home ownership,” said Ms Mercorella.

First home buyers have also been active in the market, buoyed by the Federal Government’s 5% Deposit Scheme, which came into effect on 1 October 2025. This scheme lowered the deposit barrier to entry, with property price thresholds set at $1 million in Brisbane, Gold Coast, and the Sunshine Coast, and $700,000 in other Queensland areas.

“Competition for housing is intensified around the lower quartiles of the market where affordability is greatest and it’s perceived potential gains are highest,” Ms Mercorella noted. “This demand tapers off as you move up the price spectrum, reflecting an increasingly divided two-speed market.”

The impact of rising interest rates and recent global conflicts could exacerbate the construction crisis. “While we’re all feeling the impact of global conflict at the petrol pump, the flow on inflationary impact to manufacturing and construction, through higher transport and logistics costs, couldn’t come at a worse time,” Ms Mercorella said.

She added, “Counting the cranes on the horizon has traditionally been a promising sign of what’s in the immediate pipeline, but with high-cost risks and exposure for builders and developers comes uncertainty.”

Despite these challenges, Queensland’s house market continued to perform strongly in the December 2025 quarter. The statewide median sale price for houses grew by 6.11% over the quarter to $955,000, with an annual rise of 13.7%.

The Redlands LGA led in quarterly median house sales price growth, followed by Cairns, Ipswich, Moreton Bay, and Townsville. Annual growth was most significant in Townsville, Gladstone, Mackay, Rockhampton, and Toowoomba.

In the unit market, Moreton Bay, Bundaberg, Ipswich, and Cairns recorded double-digit quarterly median sale price growth. Rockhampton’s unit market saw a dramatic quarterly decline, but its annual performance suggested a 36.11% rise, the highest in the state.

Units remained popular in Brisbane and the Gold Coast, with Noosa’s quarterly median leading at $1.15 million. Median days on market for units remained swift at 20 days, with Toowoomba’s unit market heating up with a median of only 10.5 days to sell.

These dynamics highlight the ongoing challenges and opportunities in Queensland’s property market as it navigates supply constraints and evolving demand.