Reflecting on 2024: What It Means for Queensland Real Estate in 2025
As we step into 2025, the Queensland real estate market continues to be one of resilience and opportunity. The latest CoreLogic report reveals key insights that paint a picture of both challenges and optimism for the property market. Let’s dive into the data and explore what it means for buyers, sellers, and investors across the Sunshine State.
Queensland’s Strong Performance in 2024
Despite a slight cooling nationally (-0.1% decline in December 2024), Queensland outshone most regions. Brisbane recorded an impressive 11.2% annual growth in dwelling values, while regional Queensland surged by 10.5%. Townsville and Gladstone led the pack with annual growth of 27.2% and 27.1%, respectivelyrowth reflects the continued appeal of Queensland’s affordability, lifestyle, and relative stability compared to other markets like Melbourne (-3.0%) and Sydney (2.3%).
Rising Affordability Pressures
While the headlines speak of growth, affordability remains a critical issue. Across Australia, the median dwelling value to income ratio reached record highs in 2024. However, with interest rate cuts expected in 2025, some relief could be on the horizon for homebuyers. The Reserve Bank of Australia is projected to reduce the cash rate by up to 77 basis points over the year, potentially boosting borrowing capacity. Queensland’s rental market saw a slowdown, with rents increasing by 4.8% nationally, marking the smallest December quarter rise since 2018. Yet, gross rental yields in Brisbane (3.2%) remain attractive for investors. The demand for rental properties is likely to persist as population growth continues to drive housing needs.
- Sustained Demand for Regional Queensland: Regional areas like Townsville and Gladstone are poised for continued interest, especially from first-home buyers and investors seeking value outside Brisbane.
- Interest Rate Adjustments: Lower rates are expected to stabilize the market and increase buyer activity, particularly in lower-priced properties that performed well in 2024.
- Supply Challenges: The ongoing shortage of newly built homes may support property values in the short term, but affordability solutions are needed to address long-term demand.
- A Multi-Speed Market: While Brisbane and regional Queensland are set to remain strong, other areas may experience more subdued growth, reflecting diverse local dynamics.
Insights for Buyers, Sellers, and Investors
- Buyers: 2025 could offer improved affordability with lower interest rates. Now is the time to explore opportunities in growth corridors like Ipswich, which recorded annual value increases of over 16%.
- Sellers: With Queensland property values remaining strong, presenting a well-prepared home could capitalize on the continued demand, particularly in high-growth areas.
- Investors: The cooling rental growth presents opportunities to secure properties at attractive yields before the market potentially rebounds.
Final Thoughts
The Queensland property market remains a standout performer in Australia, offering opportunities for a diverse range of buyers and investors. As we navigate 2025, staying informed and agile will be key to making the most of the year ahead.
If you’re considering buying, selling, or investing, reach out for tailored advice to help you achieve your property goals in this dynamic market.
