Queensland property prices experienced an unexpected spike over the final quarter of 2024, defying national trends and outperforming the figures released by the Real Estate Institute of Queensland (REIQ). House prices in Queensland saw an increase of 5.9 per cent to $810,000 – marking their largest quarterly increase since early 2022 and hinting at increased demand for detached houses across Queensland’s regional areas.
Antonia Mercorella, Chief Executive of REIQ, commented that while price growth may not be as rapid as it has been in previous years, it still demonstrates continued strength and resilience within the state’s market. While affordability issues and reduced immigration might dampen sales activity temporarily, strong economic fundamentals should continue supporting property values and sales volumes.
As Queensland’s economy rebounded, Queensland’s suburban markets experienced solid gains. Brisbane’s outer suburbs led the charge as buyers sought entry-level homes that are both affordable and provide long-term potential. Meanwhile, inner-city suburbs like West End and Highgate Hill drew buyers and renters looking for vibrant urban living; boutique apartments within these areas proved highly sought-after due to their proximity to CBD services and cultural landmarks.
On the coast, coastal towns are also doing well as their lifestyle draws in both families and retirees. Prices in South Gladstone and Townsville have seen rapid increases thanks to strong local economies supported by mining, tourism, agriculture and agriculture; Gold Coast unit prices have seen similar gains with its expanding population and job market fuelling housing demand.
Australia provides investors with an abundance of investment opportunities. Mining towns such as Mackay and Townsville provide low-cost entry points with solid rental yields, while urban areas like Brisbane and Gold Coast are experiencing transformation through infrastructure projects including new roads, metro rail upgrades and airport upgrades that draw investors’ interest. Furthermore, the 2032 Olympic Games will increase demand near venues and public transport hubs.
Investors should remember that while prices may be rising, rents remain at their historically-low levels compared to historical norms, making strong rental markets an attractive way of increasing returns despite cooling markets overall. They can further maximize returns by purchasing newly built properties which typically boast modern amenities and lower utility bills; and by taking advantage of government grants like the First Home Owners Grant or tax depreciation benefits.
No matter your experience level or investment goals, selecting an optimal location is critical to your success as an investor. Target Australian markets with strong annual capital growth as well as suburbs that are growing due to demographic trends or infrastructure developments; using both residential and commercial properties allows you to maximize returns.