Banks have responded to the recent interest rate cuts by lowering mortgage lending rates, creating new opportunities for homebuyers.
Although lingering cost-of-living pressures and sustained higher prices, many continue to feel confident about the Regional Queensland property market despite a lesser number of listings available on inspection and then the shortened time on market
Winter/25
Regional Queensland Residential
Regional Queensland property prices continue to rise steadily, driven by tight housing supply, robust buyer sentiment, and positive expectations for future value growth
Rental conditions remain challenging for tenants and will likely continue to place pressure on household budgets Until more homes are built or made available, rents are likely to keep climbing over the next two years
Interest Rate
3.85%
The Reserve Bank of Australia (RBA) lowered the interest rate target 25 bps to 3 85% in May 2025 Many banks followed this direction and adjusted their mortgage lending rates accordingly. Interest rates significantly influence the cost of borrowing money, which in turn affects the willingness and ability to apply for a home loan. The RBA forecasts the target could be 3 40% by the end of 2025, and 3 20% in 2026 When interest rates are lowered, borrowing becomes cheaper, which can stimulate demand for residential property and drive economic growth
Unemployment Rate
4.3%
Employment levels influence people’s ability to initially purchase a home and then the ongoing mortgage repayments servicing the loan The unemployment rate in Australia was 4 3% in March 2025, which is considered a healthy, balanced labour market given the rate falls within the ideal range of 4% to 5% The RBA forecasts the unemployment rate to rise by the end of 2025 to 4.3%, then remain relatively steady in 2026
Economic Growth 1.3%
Economic growth remains a key driver because it fuels job creation, boosts incomes, and increases demand across property markets Australia recorded economic growth at 1.3% in 2024, following stronger performance of 3.1% in 2022 and 1 5% in 2023 Looking forward, the RBA forecasts economic growth to lift to 2.1% in 2025 and 2.2% in 2026. Ideally, sustainable economic growth is considered to be around 2% to 3%
Population Growth 1.8%
Population growth increases housing demand as more people require places to live, encouraging more housing and infrastructure to be built in regional areas. As more people moved to Regional Queensland following the pandemic, the population grew by 1 8% in 2022, 2 2% in 2023, then returned to 1 8% growth in 2024 The ABS have projected the long term population growth for Regional Queensland at 1 3% in 2025 and 1.2% in 2026.
Source: McGrath Research, RBA, ABS
Residential Sales Update
Regional Queensland residential annual sale transactions tallied to 79,241 in the first quarter of 2025, a downward movement of 0 4% from the previous quarter Although over the past year, the total number recorded was 7% higher. This was influenced by the total number of listings being 4% lower in the four weeks ending March 2025 when compared to the equivalent period last year, coupled with, a reduction in mortgage lending rates and ongoing solid consumer sentiment
Total Number of Annual Sales
Regional Queensland
Source:
Share of State Annual Sales
The share of total number of Queensland annual residential sales recorded by Regional Queensland was 55% at the end of Q1 2025. This was higher than one year ago when the proportion was 52%, and remains above the 48% share recorded five years ago Over the past year, Regional Queensland (7%) outpaced the annual growth of sales activity in Greater Brisbane (-4%)
Share of State Annual Sales, by Number
Regional Queensland
Source:
Source: McGrath Research, APM
McGrath Research APM
McGrath Research, APM
Residential Sales Update
Duration
75 days
Homes across Regional Queensland took an average 75 days on market - from the time they were listed to the day they went under contract - in the March 2025 quarter This duration was 78 days the quarter before and 82 days one year ago. Historically, apartments sell faster than houses and this was no different in the past quarter Houses averaged 83 days to sell in Q1 2025, which was 3 days shorter than in Q4 2024 and 7 days shorter than in Q1 2024 Apartments took an average 51 days to sell, being 1 day less than the previous quarter and 8 days less than a year ago A low number of days on market mean homes are selling fast with more desirable or undersupplied properties, while a high number of days suggests a slower market
Average Days on the Market Regional Queensland
Source: McGrath Research
New Listings
Newly advertised property listings in Regional Queensland were 10 1% lower in the month of March 2025 than the equivalent period last year. This trended above the -4.8% average for the combined regional areas of Australia
Regional Queensland’s total number of listings in the month of March 2025 were 4 0% below the equivalent period last year. By comparison, total listings were an average 0.7% higher across the combined regional areas of Australia
Source: McGrath Research, CoreLogic
Source: McGrath Research
Residential Prices Update
Median Price
$796,000
Median property prices provide a benchmark for market performance and can help identify emerging trends Residential property prices rose by 13 1% in the year to March 2025, with a 3.3% increase recorded in the most recent quarter This brought the Regional Queensland median value to $796,000, reflecting a recent steady upward trajectory in housing demand and solid resilience in the market Median house prices were at $825,000, while apartments were at $707,500 in Q1 2025 House prices grew 3 9% from a quarter ago to be 13 3% over the year Over the same quarter, apartments rose by 1.4% and overall, 12.2% growth in the past year
Change in Median Prices
Regional Queensland
Source: McGrath Research
Price Outlook +7%
Looking ahead, McGrath Research anticipates Regional Queensland residential property prices to increase by 7% by the end of 2025, followed by a more sustainable 5% rise in 2026 These projections reflect ongoing demand given limited housing supply and solid consumer confidence following a reduction in mortgage interest rates
Forecast for Median Prices
Regional Queensland
Source: McGrath Research
Source: McGrath Research
Residential Rents Update
Rental vacancy can have a significant impact on the residential property market, influencing both rental prices and property values. Regional Queensland residential rental vacancy was recorded at 0 8% in Q1 2025, remaining stable over the quarter and overall, 3 bps lower over the past year Generally, 3% vacancy is considered a balanced market between rental supply and demand Below this benchmark is considered to be an undersupplied pool of rental homes
Change in Residential Rental Vacancy Regional Queensland
Yield
-8 bps
Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted A range of 4 00% to 5 00% is considered good for many properties located in a capital city, while below this, may indicate high property prices relative to rent, or low rental demand Regional Queensland residential gross rental yields fell 8 bps in the Q1 2025 quarter to be 5 07%, while this was 27 bps lower than a year ago. Apartment yields (at 5 29%) tend to outperform house yields (5 00%) and this was the same in the past quarter House yields fell 7 bps in Q1 2025 and by 24 bps over the past year, while apartment yields were 8 bps lower in this past quarter and 37 bps lower from a year ago
Change in Gross Rental Yield
Regional Queensland
Source: McGrath Research
Source: McGrath Research
Source: McGrath Research
Residential Rents Update
Median Weekly Rent
Low vacancy continues to hold rents elevated across Regional Queensland. Residential rents rose 2.4% in Q1 2025, while rents increased by 8 5% over the past year, to stand at $640 per week Median weekly house rents were $40 higher than apartments, growing by 2.4% in Q1 2025 to $650 per week, with 8 3% growth over the past year Apartment weekly rents, at $610, rose 2 5% in Q1 2025 and in the past year by 8 0%
Change in Median Weekly Rents
Regional Queensland
Rental Outlook
While Regional Queensland continues to experience extremely tight residential rental supply and delayed new housing completions, McGrath Research forecast sustained upward pressure on rents of 8% at the end of 2025, with a further 6% rental growth likely in 2026
Forecast for Median Rents
Regional Queensland
Source: McGrath Research
Source: McGrath Research
Source: McGrath Research
Regional Queensland
Regional Queensland refers to the area outside of ‘Greater Brisbane’ or ‘Rest of State’ for Queensland as defined by the Australian Bureau of Statistics
