Queensland Set to Dominate Australia’s Property Market in 2025

Queensland’s property market is on track for a major surge in 2025, with regional areas expected to lead the charge. While Brisbane will see solid growth, the biggest gains are anticipated outside the state’s capital, with one major city projected to see property prices skyrocket by up to 30%.

Townsville Poised for Unprecedented Growth

After years of economic challenges, Townsville is emerging as Australia’s top-performing property market for 2025. The latest Property Market Outlook Report from Propertyology forecasts a 25-30% increase in home values, positioning the city as the nation’s leading growth market.

“Across all of Australia, the strongest-performing property market in 2025 is expected to be Townsville,” said Simon Pressley, founder and head of research at Propertyology.

This growth is driven by Townsville’s affordability, strong rental yields, and increasing demand from investors and homeowners alike. Ray White Townsville principal Giovanni Spinella noted that 2024 was already a strong year for the city, with robust returns and capital growth. Despite this, the median house price remains a relatively affordable $490,000, suggesting further room for growth.

“We’re seeing three main types of buyers—upgraders moving into their dream homes, investors, and a significant number of interstate buyers relocating from down south,” Spinella added.

Sunshine Coast and Regional QLD to Benefit

It’s not just Townsville that’s expected to shine. The Sunshine Coast is tipped to be Australia’s second-best performing property market, with anticipated growth of 12-16%. Other Queensland regions also forecast to see strong appreciation include:

• Mackay: 12-16%

• Toowoomba: 9-13%

• Gold Coast: 10-13%

• Cairns: 7-11%

• Bundaberg: 6-9%

• Fraser Coast: 5-8%

• Brisbane: 7-10%

Meanwhile, Greater Brisbane’s market is set to experience more modest growth, with PropTrack predicting home price increases between 2-5%—a slowdown compared to the 12.6% growth recorded in 2024.

Interstate Migration and Market Dynamics

Queensland continues to attract interstate migrants, especially from Sydney and Melbourne, which are expected to underperform in 2025. Ray White chief economist Nerida Conisbee predicts that strong migration trends, combined with ongoing housing supply challenges, will fuel further price growth across the state.

“If interest rates are cut in 2025, we can expect another boost in property values,” she said.

Investors are also making a comeback, with $2.6 billion borrowed for Queensland property in September 2024 alone—a 53% increase from the previous year. This has been largely driven by ultra-low vacancy rates (sub-1%) in key markets like Brisbane, the Gold Coast, and Sunshine Coast, offering strong returns for investors.

Brisbane’s Olympic Effect and Affordable Market Trends

Looking ahead, Brisbane’s property market will remain strong, bolstered by infrastructure projects and preparations for the 2032 Olympics. However, the most significant growth is expected in the city’s more affordable outer suburbs, including Redlands, Moreton Bay, and Ipswich, as buyers seek better value amid rising housing costs.

“Brisbane’s housing market has already surged 64% since COVID-19, and while prices are at new peaks, demand remains high due to migration, infrastructure investment, and the city’s growing economy,” said Place CEO Damian Hackett.

He also warned that housing supply constraints remain a key challenge, with developers struggling to keep up with demand due to rising construction costs.

First Home Buyers Face Challenges Amid Growth

Despite the positive outlook, the influx of investors and strong competition in Queensland’s market is making it harder for first-home buyers to enter. LJ Hooker head of network Chris Keating noted that an interest rate cut in 2025 could bring up to 150,000 first-time buyers into the market, increasing competition even further.

“Housing never goes out of fashion. Aside from water, it is the most essential commodity,” Pressley concluded.

With Queensland’s strong economic fundamentals, continued population growth, and investor confidence, the Sunshine State is set to be Australia’s property powerhouse in 2025.