Property prices in regional Queensland are set to explode in 2025, with one major city set to see the nation’s biggest price jump amid forecasts it will grow by a massive 30 per cent.
While Brisbane will continue to see big gains in property this year, with prices tipped to grow by up to 10 per cent, it is outside the state’s capital that sellers are expected to see some big gains.
Townsville, which has finally shaken off the effects of the mining downturn and floods, is poised to lead the nation in house price growth, with the 2025 Property Market Outlook report from Propertyology predicting prices to boom a whopping 25-30 percent.
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An aerial photograph of Townsville, where home values are tipped to boom this year
“Across all of Australia the best-performed property market for the 2025 calendar year is expected to be Australia’s 14th largest city, Townsville,” Propertyology founder and head of research Simon Pressley said.
“At the other end of the spectrum, Australia’s two largest cities are expected to be among the nation’s worst performers. Both Sydney and Melbourne are likely to produce mild declines in real estate values.”
Propertyology founder Simon Pressley.
Ray White Townsville principal Giovanni Spinella said 2024 had been one of the strongest years for the city.
He said that both investors and homeowners had seen strong returns and capital growth.
“But our median price ($490,000) is still great value so I think we still have some more room to grow,” he said.
“We are really seeing three buyers – upgraders who have some equity and are moving into their dream homes, investors and quite a few moving from down south.”
But it is not just Townsville tipped for more growth this year.
49 Chandler Street, Garbutt, in Townsville sold for $545,000
Sellers on the Sunshine Coast could also cash in, with the region likely to be the nation’s second best-performing property market with growth between 12-16 per cent.
The Propertyology report forecast growth in every major Queensland region, including Cairns (7-11%), Mackay (12-16%), FraserCoast (5-8%), Toowoomba (9-13%), Bundaberg (6-9%), Gold Coast (10-13%) and Brisbane (7-10%).
Propertyology 2025 Market Outlook.
Meanwhile, the annual McGrath Report also tipped Townsville to be the place to watch this year for both capital gains and rental yield.
“Prices are still on the lower side compared to many other parts of Queensland and gross rental yield is among the highest in Queensland, making Townsville a safe bet for both investors and owner occupiers,” McGrath Esate Agents founder John McGrath said.
The report also named Springwood, Forest Lake and North Ipswich in Greater Brisbane and Caloundra West on the Sunshine Coast as other hot markets over the coming year.
Caloundra West is home to housing estate such as Stockland Aura.
Home price growth has also been forecast across Greater Brisbane by PropTrack, although the increase is expected to be more subdued at between 2 and 5 per cent.
While still strong, it is well below the 12.6 per cent recorded in 2024.
PropTrack senior audience analysts Karen Dellow said Adelaide, Perth, and Brisbane were expected to lead price growth, while stable to modest growth could be experienced in Hobart, Darwin and Canberra.
Melbourne, she said, would likely continue to face challenges.
“While uncertainties linger regarding what 2025 might hold for the Australian property market, prospects for ongoing pricegrowth remain supported by anticipated rate cuts, which could boost borrowing capacities, alleviate financial strain on households and further drive market activity,” Ms Dellow said.
Melbourne, which has seen an exodus of people to places like Queensland, is expected to face further challenges
In Brisbane, Place CEO Damian Hackett expects the city’s more affordable suburbs to be the top performers over the next year.
“The city’s housing market has already surged by 64 per cent since Covid-19, and while prices are at new peaks, demand remains strong, driven by migration, infrastructure projects, the city’s continued economic growth and the future Olympics,” he said.
“Brisbane’s more affordable markets are expected to outperform, particularly in the bottom end of the market.
“As affordability pressures increase, these areas, which includes outer Brisbane, Redlands, Moreton Bay and Ipswich regions, will remain key targets for buyers looking for value.
“One of the most critical challenges facing Brisbane is the difficulty developers face in ramping up housing supply due to a persistently tough construction environment.
“This shortage of new housing directly fuels price escalation, as limited supply, compounded by strong demand, creates intense upward pressure on property values.”
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Ray White chief economist Nerida Conisbee agreed, saying that she expected Queensland to continue to attract interstate migrants.
“And because of the challenges persisting in the construction sector and issues with housing supply, it is likely there will be continued price growth across the state,” she said.
“Also, if interest rates do get cut, that will also likely create another boost to prices.”
LJ Hooker head of network Chris Keating said investors had also returned to Queensland.
“In September, investors borrowed $2.6 billion for Queensland property, which was 53 per cent up on the same period in 2023,” he said.
“Many southeast Queensland property markets have sub-1 per cent vacancy rates and that’s provided certainty for investors.
“And with the change of government, there has been a lot of focus on work that needs to be done to prepare for the 2032 Olympics and Paralympics which will help underpin future employment prospects.”
Brisbane will host the Olympics in 2032.
But Mr Keating said the influx of investors had proved challenging for first home buyers.
“A lot of homeowners are hanging out for an interest rate cut in 2025 but history shows that rate cuts stimulate competition, and that would further make it difficult for first home buyers to enter the market,” he said.
Aerial view of Cairns, where Propertyology predictions are tipping home price growth of 7-11 per cent
Mr Pressley said up to 150,000 first home buyers could enter the market if the Reserve Bank of Australia cuts rates as predicted.
He said home upgraders were expected to be the most active buyer segment, while Gen Y rentvestors from expensive markets like Sydney would also likely be active across the Sunshine State.
“Housing never goes out of fashion,” he said.
“Aside from water, it is the most essential commodity.”
