Queensland property prices keep climbing as headwinds gather
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Photo by Sam Babus
Queensland’s property market has continued its upward trajectory throughout the first quarter of 2026, defying mounting challenges that threaten to dampen the state’s real estate boom. The latest data from the Real Estate Institute of Queensland (REIQ) reveals a robust increase in median sales prices for both houses and units across nearly all major regions, despite growing concerns over rising interest rates, global uncertainty, and proposed tax reforms.
According to the REIQ’s figures for the March 2026 quarter, the statewide median house price rose by 4.21% to $990,000, marking a 15.7% increase over the past year. The unit market also saw significant growth, with the median price climbing 4.81% to $817,500, representing a 17.19% annual increase. These gains underscore the continued strength of Queensland’s property market, even as economic headwinds gather.
REIQ CEO Antonia Mercorella commented on the market’s resilience, stating, “Up until the end of March, there were no obvious signs of a slowdown just yet â price growth has continued right across the board, and Queensland is outperforming many other parts of the country â but the mood in the market is becoming more cautious.” She added, “Weâre seeing more fear and trepidation creep into decision-making â people are asking what comes next if they make a move, how much further borrowing costs could rise, and what broader economic pressures might mean for their household budget.”
Brisbane’s property market has been at the forefront of this growth, with median house prices rising by 3.18% over the quarter to $1.46 million. The unit market in Brisbane also experienced a significant boost, with median prices increasing by 6.67% to $880,000. In Greater Brisbane, house prices rose by 5.75% to $1.15 million, while unit prices increased by 5.74% to $837,500.
Among the major Brisbane local government areas (LGAs), Moreton Bay recorded the strongest quarterly growth for houses, with prices up 5.3% to $1.053 million. Ipswich led the way in quarterly unit growth, with a 7.42% increase to $709,000.
In Queensland’s tourism markets, Noosa posted the most substantial quarterly house price growth, surging 8.39% to $1.68 million. The Gold Coast’s unit market rose by 4.47% to $935,000, while Noosa’s unit prices increased by 3.15% to nearly $1.23 million.
Despite the impressive figures, Ms Mercorella highlighted the challenges facing the market, particularly for investors. “Existing and prospective investors are still reeling from recent federal budget announcements proposing changes to negative gearing and capital gains tax reforms,” she said. “These material and unexpected taxation changes have created nervousness amongst the investor community and anecdotal feedback is that investor confidence has taken a dent.”
Across regional Queensland, annual growth remained particularly strong. Rockhampton and Toowoomba both recorded 18.93% annual house price growth, while Rockhampton led the state for annual unit growth with an exceptional 33.55% increase.
Ms Mercorella noted that while the fundamentals driving the market have not disappeared, the question now is how the market will handle the impending challenges. “Listings remain tight, new housing supply is still not where it needs to be, and Queenslandâs strong population growth continues to sustain demand,” she said. “The question now is not whether Queensland property has proven to be strong, but how the market will handle the global and local headwinds on the horizon.”
The state’s housing delivery remains off pace, with Queensland expected to contribute around 49,300 homes each year under the National Housing Accord. However, the state has completed only 32,900 dwellings over the last 12 months to the December 2025 quarter, falling approximately 33% short of the target.
Looking forward, building approvals in Queensland’s pipeline were running at 3,975 dwelling units in trend terms in March 2026, 3% below the monthly target of about 4,100 dwellings. Elevated construction costs and capacity constraints continue to challenge feasibility.
Ms Mercorella emphasised the need for sustained action to address these issues. “Queensland has built a reputation for resilience over recent years, but resilience should not be mistaken for invincibility,” she said. “If governments want to preserve a pathway to home ownership while maintaining a healthy property market, supply has to remain the priority. We need sustained action to boost housing delivery, improve productivity, and make it easier to bring the right mix of homes to market.”
As Queensland’s property market continues to navigate these challenges, the focus remains on balancing growth with affordability and ensuring that the state’s housing needs are met.