M:
The Big Picture
Regional Queensland Residential Spring/25
The Economy Key Drivers
Residential Sales Update
Regional Queensland residential annual rolling sale transactions tallied to 73,496 in the second quarter of 2025, a downward movement of 7% from the previous quarter and overall 5% lower than a year ago This was influenced by a lower number of residential listings and the market anticipating a further interest rate reduction by the end of the year. As a benchmark, the annual average was 80,622 sales over the past five years
Share of State Annual Sales
The share of Queensland’s total number of annual residential sales recorded in Regional Queensland was 53% at the end of Q2 2025 This was on par to one year ago when the proportion was also 53%, but was higher than the 48% share recorded five years ago Over the past year, Regional Queensland (-5%) was slightly stronger than Greater Brisbane (-7%) in the annual change of sales activity
Total Number of Annual Sales Regional Queensland
Sales -5% 53%
Share of State Annual Sales, by Number Regional Queensland
Duration +0 days
Regional Queensland residential homes took an average 78 days on market - from the time they were listed to the day they went under contract - in the year ending Q2 2025 This duration was 75 days a quarter ago (+3 days) and a similar 78 days a year ago A lower number of days on market mean homes are selling fast with more desirable properties, while a higher number of days suggests a slower market with above market values. Looking back, the five-year average has taken 122 days to sell a home
Average Days on the Market
Newly advertised property listings in Regional Queensland were 6.5% lower in the month of June 2025, than the equivalent period last year, as reported by Cotality This trended above the -9.3% for the combined regional areas of Australia and -7 0% across Australia
Regional Queensland’s total number of listings in the month of June 2025 were 6.4% below the equivalent period last year, according to Cotality By comparison, total listings were -5.6% across the combined regional areas of Australia and -2 1% Australian-wide
Residential Prices Update
Change in Average Prices Regional Queensland Average Price
Residential property prices across Regional Queensland rose by 11 3% in the year ending Q2 2025, with a 1 9% increase recorded in the most recent quarter This brought the average residential value to $811,000, reflecting the solid ongoing housing demand driven by the underlying resilience of coastal markets Annual residential price growth has averaged 12.5% over the past five years.
Forecast for Average Prices Regional Queensland Price Outlook +8%
Looking ahead, McGrath Research anticipates Regional Queensland residential property prices to increase by 8% by the end of 2025, followed by a further 6% rise in 2026. Factors taken into consideration include the population growth projection, stronger economic growth forecast and growing buyer confidence following a reduction in mortgage interest rates
Regional Queensland Vacancy 1.0%
Change in Residential Rental Vacancy
Regional Queensland residential rental vacancy was recorded at 1 0% in Q2 2025, rising 18 bps in the quarter and in total, 13 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. Over the past five years, rental vacancy has averaged 0 8% per year
Regional Queensland Yield -31 bps
Change in Gross Rental Yield
Residential gross rental yields fell 6 bps in the Q2 2025 quarter to be 5 01% across Regional Queensland, while being 31 bps less than a year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. Gross rental yields have averaged 5 33% over the past five years
Regional Queensland, Q2/25
Average Weekly Rent $655
Regional Queensland residential rents rose 1.6% in Q2 2025, while increasing 8 3% over the past year, to stand at $655 per week Although slowing from previous years, elevated population growth and low residential vacancy are keeping rents high On average, over the past five years, rents grew 10.1% per year.
Change in Average Weekly Rents
Regional Queensland Rental Outlook +8%
Forecast for Average Rents
The completion of new builds remains low across Regional Queensland, so there continues to be an undersupply of new homes being added to the rental pool, while population growth has stayed elevated As a result, McGrath Research forecast sustained upward pressure on rents of 8% at the end of 2025, with a further 6% rental growth likely in 2026
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.
Michelle Ciesielski Head of Research, McGrath Research
michelleciesielski@mcgrath com au +61 414 694 220
www mcgrath com au