QLD Real Estate Market & House Prices
The Queensland property market has long been a favourite of Australian and international investors, and it’s not hard to see why. The state has a diverse range of property types and locations on offer, from city apartments to rural acreages, and everything in between. And with the Queensland lifestyle being so attractive, it’s no wonder that demand for property in the state is always high.
The Queensland property market has gone through a period of strong growth. This is good news for investors, as it means that there is significant capital growth potential in the market. The outlook for the Queensland property market is positive with the population growth in the state is forecast to be strong over the coming years, which will continue to drive demand for housing.
If you’re thinking of investing in the Queensland property market, it’s important to do your research first. There’s a lot of opportunity for investors, however data-driven market due diligence is a must before moving on with property search.
QLD Property Market Heatmap
The heatmap below displays the yearly rate of house price change in Queensland LGAs, with darker blue indicating higher growth and lighter blue indicating lower growth. To view an alternative perspective, other metrics can be toggled, shading areas based on desired market evaluation parameters. For example Indicative Yield, Lower Risk, Cashflow and Capital Growth scores. Please note that additional layers may require a subscription with HtAG.
Interested in evaluating risk associated with investing in a particular LGA on the heatmap? HtAG Lower Risk Score, ranging from 1 to 100, is a metric that takes into account various risk indicators such as environmental, market, and data to assign a score. A higher score reflects a lower risk.
Learn more about HtAG’s property market risk criterion here. Unlock powerful features such as suburb-level heatmaps, capital growth, and cashflow rankings of areas when you sign up on the Professional Plan.
Snapshot of Key Metrics
Explore the real estate market in Queensland with our snapshot of key metrics. Toggle between Houses and Units to view typical price, median rent and gross yield metrics for each property type. Houses are free standing houses (excl. townhouses and villas). Units are apartments, studios, flats, units (excl. unit blocks).
Buy
2BR
3BR
4BR
5BR
Rent
2BR
3BR
4BR
5BR
Yield
2BR
3BR
4BR
5BR
Buy
1BR
2BR
3BR
Rent
1BR
2BR
3BR
Yield
1BR
2BR
3BR
Compare QLD LGAs & Suburbs
The data in the table below represents key real estate metrics as of the current month. Clicking on an LGA or Suburb links in the table will take you to the relevant area dashboard where you can drill-down to the next level of data. Enable additional columns in the table by clicking on the buttons underneath it.
QLD House Price Charts
The interactive chart below shows typical price for both houses and units as well as the sales volume per month. Toggle additional views of prices per number of bedrooms by clicking on BR2, BR3 etc underneath the graph. You can also drill down to LGA charts using the dropdown in the floating navigation bar.
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Prices are rising and there is strong demand for properties, especially in the capital city of Brisbane. But, it’s not just the capital leading the charge, with houses prices in regional centres such as Townsville, Cairns and Rockhampton also seeing healthy growth.
The market is being driven by strong population growth, low interest rates and increased investor confidence. First home buyers are also active in the market, taking advantage of government incentives and lower prices compared to other states and territories.
Many experts are predicting that Queensland house prices will continue to rise in the years ahead, so there are many great opportunities in the market.
QLD Rental Price Charts
Use the interactive chart below to explore the rental prices in Queensland in detail. Click on the Number of Bedrooms legend to show additional series per number of bedrooms. Remember that you can drill down to LGA charts using the dropdown in the floating navigation bar.
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Rental prices in Queensland have been on the rise in recent years, as more people are moving to the state in search of work and lifestyle opportunities. This increase is in line with other states across Australia, as the demand for rental properties continues to outstrip supply.
Gross Yield on Investment Properties in QLD
Explore the chart below to visualise the gross yield trends for QLD LGAs in detail. Gross yield is the percentage of the purchase price that the investor receives in income each year. In Queensland, gross yields for property investment ranges from 1% to 8.7% depending on the location. Lower priced suburbs typically offer higher yields. However, there are exceptions to this rule.
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The location of an investment property is a major factor in determining its gross yield. Properties in major urban centres such as Brisbane and the Gold Coast tend to have lower gross yields than properties in regional areas.
Market conditions are also a major factor in determining the gross yield on an investment property. Properties that are purchased during a buyer’s market tend to have higher gross yields than properties that are purchased during a seller’s market.
Investment properties in Queensland that are well-located, well-maintained and in good condition can achieve gross yields of 8% or more.
However, it is important to remember that gross yields are only one metric for assessing the performance of an investment property and that other factors, such as capital growth potential and rental demand, should also be considered when making an investment decision.
QLD Property Type Demand Profile
Use the chart below to understand which property types have the highest demand in Queensland real estate market. There are several popular dwelling types in Queensland, but the most common are detached houses, townhouses, and apartments.
Generally speaking, Queensland has seen strong growth in its population over the last few years, which has driven demand for all types of property. The state has a diverse property market, with something to suit every budget and lifestyle. Whether you’re looking for a beachside apartment or a rural retreat, you’ll find it in Queensland.
As far as residential property market is concerned, the most in-demand QLD real estate are 3 and 4 bedroom houses, followed by 2 bedroom units. The units are dominant in CBD of urban centres, whereas other LGAs are mostly rural and have 3 and 4 bedroom house preferences.
QLD Buy & Rent Search Index
The chart below illustrates the trends for “buy” and “rent” online searches in Queensland. You’ll notice that searches for rental properties have increased over the years. Search Index is calculated as an average number of searches per listing type i.e. houses or units apportioned by the population within the area. Search Index of 5 signifies balanced demand.
It’s no secret that Australians love their homes. Whether it’s a treehouse in the rainforest, a hobbit-style abode in the Outback or a penthouse overlooking the beach, we love our homes and we love talking about them. So it’s no surprise that online search interest in houses for sale in Queensland is through the roof.
The overall search index for QLD is calculated as an average of all LGA indexes. It has historically hovered between 3.0 and 4.0 for houses which is lower than the index in more populated and economically developed states in the country.
QLD Market Growth Rate Cycles
The chart below illustrates changes in year on year price growth in Queensland LGAs. It helps to visualise cyclicity in the market and pinpoint likely progression of future price growth in the state’s LGAs.
Confidence: High, Medium, Low
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Investors should be aware that Queensland’s property market goes through cycles of growth and decline. However, the long-term trend is always upward, so there are always opportunities to maximise return on investment.
Expansion phase will eventually come to an end, and the market will enter the plateau phase. This is characterised by slower price growth and increased supply, as investors and home sellers start to cash in on their profits.
The Queensland property market has entered the growth phase in early 2020. The market has been performing well since then, with house prices and rents increasing. The market is expected to continue to grow in the short-term.
However not all LGAs are experiencing growth with some regional LGAs showing declines in pricing.
Ratio of Renters to Owners in QLD LGAs
A high renter to owner ratio indicates that there are more renters than owners, which could be a sign that the market is unaffordable for many people. A low renter to owner ratio, on the other hand, could indicate that the market is ripe for investment. As a rule of thumb, there should be no more than 45% renters in an area for it to be considered to have a good investment potential.
Furthermore, the importance of having more owners than renters in a property market is that it gives people a sense of stability. Owners are incentivised to maintain their property and contribute to the community, increasing the appeal of the neighbourhood as a whole.
The rise in renting is being driven by a number of factors, including the high cost of housing and the difficulty of getting a mortgage. In the past, people tended to rent for a short time while they saved up for a deposit on a house. Now, more and more people are renting for the long term, as it is becoming more expensive to buy a home.
Nor surprisingly, the proportion of Queenslanders who own their own home has been declining for several years. The increase in renting has been most pronounced in the 25-34 year age group.
The increase in the number of renters has been most pronounced in the inner-city of Brisbane, where the ratio of renters to owners has increased over the years. This is likely due to the high costs of ownership and the difficulty of obtaining finance in this area.
Ratio of Units to Houses in QLD
The increasing ratio of apartments to houses in Queensland is having a few impacts on the state. However, compared to other states and territories, the overall ratio of units to houses is well under the threshold at with just 14% of dwellings sold being units.
It’s important to keep in mind that the unit to house ratio can vary depending on the location. For instance, in Queensland regional areas, the ratio might be much lower in favour of houses.
Increasing ratio of apartments to houses is that apartments are generally more affordable than houses. This is especially true in Brisbane, where the price difference means that more people are opting to purchase or rent an apartment instead of a house.
In addition, it appears that the number of units being built is on the rise, which is good news for those looking to invest in the property market. However, the ratio of units to houses is still relatively low, meaning that there is still plenty of demand for houses in the state.
QLD Property Market Socio-Economics
The Index of Relative Socio-economic Advantage and Disadvantage (IRSAD) ranks areas across Queensland from the lowest to the highest levels of disadvantage. The IRSAD is based on the Census of Population and Housing.
0 – 2
2 – 4
4 – 6
6 – 8
8 – 10
QLD is one of the most socio-economically advanced states in Australia. It has one of the highest GDP per capita and one of the lowest unemployment rates. The socio-economic status of people in Queensland varies widely. In general, those who live in urban areas and have higher levels of education and income tend to fare better than those who live in rural areas and have lower levels of education and income. However, there are pockets of disadvantage in both urban and rural areas.
The Index of Relative Socio-economic Advantage and Disadvantage (IRSAD) ranks areas across Queensland from the lowest to the highest levels of disadvantage. The IRSAD is based on the Census of Population and Housing. Use the graph below to understand the IRSAD score for Queensland LGAs.
The Queensland property market has experienced a period of sustained growth over past years and this looks set to continue in the near future. The state offers a diverse range of property types and locations, as well as an attractive lifestyle that makes it an attractive destination for investors and first home buyers alike.
With a robust economy and increasing population, the outlook for the QLD property market is Bright. Investing in the Queensland property market is an attractive option for investors looking for capital growth and strong rental returns. It is important to research the market thoroughly and invest based on data-driven market due diligence before taking the plunge.
Get Deeper Insights with RCS
RCS™ or Relative Composite Score is a powerful tool developed by HtAG Analytics that enables real estate investors and professionals to simplify their market analysis process. With an expansive and dynamic dataset spanning all Australian states and territories, users can gain a complete overview of the property markets in seconds. By combining traditional market data points into a single score system, users can quickly analyse risk, capital growth, and cashflow potential within and across suburbs with a few simple clicks.
Relying on RCS™ allows you to use multiple data points from a single score, which saves time and energy in streamlining your own market analysis. With a monthly data refresh, you can trust the real-time information provided to you accurately reflects the current market. Moreover, users have the ability to hone in on specific submarkets, such as house and units, to optimise their investing strategies.
At HtAG Analytics, we are committed to providing our users with the information they need to make sound investment decisions. By using RCS™, you can gain a comprehensive view of the market insights you need. Give it a try today by subscribing using one of the options presented here.
More about Queensland Property Market
Queensland has a diverse range of infrastructure projects currently underway or in the planning stages. You can find out more about these projects by visiting the QLD government website.