- Queensland property market (Source: Emilie Lauer)
The Queensland property market has experienced significant growth since the onset of the COVID-19 pandemic, with median house prices in Brisbane and regional areas doubling in some cases. The latest data from the Real Estate Institute of Queensland (REIQ) shows that over the March quarter, the median house price in Queensland rose by 0.61% to $812,000, while units increased by 3.85% to $675,000. REIQ CEO Antonia Mercorella attributed this growth to the state’s exponential five-year transformation and the upcoming 2032 Olympic Games. House prices in regional areas, such as Bundaberg and Ipswich, have seen exceptional growth, with houses in Bundaberg doubling over five years and Ipswich nearly doubling since March 2020. The unit market has also seen substantial growth, with unit values surging from $385,000 to $640,000 over the last five years. The state’s median selling times have improved, with houses taking 21 days to be sold, and units selling on a median of 19 days. Despite hesitancy around the federal election, Queensland remains a strong investment state due to its strong economic and demographic fundamentals, relative affordability, and low unemployment rate.
- Australian economy (Source: Gemma Crotty)
The Australian economy experienced weak GDP growth of 0.2% in the March quarter, with public spending being the largest contributor to the decline. However, the construction sector, particularly residential and non-residential building, outperformed with growth of 2.6% and 2.1% respectively. The Reserve Bank of Australia’s interest rate cut provided a confidence boost to the industry. Despite this, productivity issues remain a challenge for the construction sector.
- Auction market (Source: Cotality)
The number of auctions held in capital cities decreased by 52.1% last week due to the King’s Birthday long weekend, with 1,397 homes taken to auction compared to 2,918 the week prior. The preliminary auction clearance rate also dropped to 63.8%, the lowest this year, with Sydney’s market experiencing the lowest preliminary clearance rate at 59.9%. Melbourne maintained a stronger auction market with a preliminary clearance rate of 71.5%, while Brisabane had the lowest preliminary clearance rate in six weeks at 58.3%. The results are preliminary and will be updated with final clearance rates each Thursday. Caitlin Fono, a senior research associate at CoreLogic, provides weekly auction reporting and updates.
- Brisbane property market (Source: Melinda Jennison)
In May 2025, Brisbane’s property market reached new milestones with both house and unit prices surpassing record medians, making it the second most expensive capital city in Australia. Buyer confidence is rebounding due to expectations of further interest rate cuts, political stability, and economic resilience. The rental market remains tight with low vacancy rates and rising rents. Listings are low, but buyer depth is strong, leading to quick sales and multiple offers for quality properties. Moderate price growth is expected for the remainder of 2025 due to inflation settling within the Reserve Bank’s target band and supportive monetary policy. Brisbane’s affordability, lifestyle appeal, and strong fundamentals position it well to continue outperforming many interstate counterparts.
- Rental markets (Source: Michael Yardney)
Rental markets across Australia have tightened significantly in May, with all capital cities reporting decreases in vacancy rates and increases in median asking rents. This trend is driven by strong rental demand and limited supply, leading to upward pressure on rents. The tightening cycle is expected to continue, presenting opportunities for early movers in the market. Retail sales eased over April but remained 3.8% higher than the previous year. Consumer spending remains cautious, but interest rate cuts are expected to boost consumer confidence. Melbourne recorded the highest auction clearance rate among the capitals, despite holiday week distractions.
- National vacancy rates (Source: SQM Research)
The Australian rental market has seen stability in vacancy rates, with some notable changes compared to the previous year. The national vacancy rate remained steady at 1.2% in May 2025, while Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Darwin, and Hobart had varying vacancy rates. The latest SQM Research Weekly Rents Index showed mixed shifts across Australia’s capital cities, with rents adjusting in response to supply and demand dynamics. Nationally, combined rents averaged $649.18, with a 0.1% monthly decline but a 4.2% annual increase. Louis Christopher, Managing Director of SQM Research, commented on the ongoing rental vacancies and growth, suggesting ongoing elevated rents until equilibrium between tenancy demand and rental supply is achieved.
- Smaller dwellings (Source: REIA)
The Real Estate Institute of Australia (REIA) reported that smaller dwellings, particularly two-bedroom properties, have outperformed houses in both price and rental growth during the March quarter. The trend is attributed to shifting household dynamics, affordability pressures, and growing demand for low-maintenance homes. Across the country, smaller dwellings recorded price growth in all states but one, while house prices declined in several capitals. The report also showed that national weekly rents for two-bedroom dwellings rose 3.5%, outpacing the 0.6% rise for three-bedroom houses. Vacancy rates remained low across most capitals, except Melbourne and Perth, where they increased to 2.5% and 2.9%, respectively. With price growth, rental demand, and low vacancy rates converging, smaller dwellings are becoming a strategic choice for both investors and downsizers.
- Buyer behaviours (Source: Sebastian Holloman)
There is a growing gap between property prices and buyer expectations in inner-city markets of Brisbane and Melbourne, leading to a surge in demand for outer-city properties. The gap is significant, with buyers’ budgets falling short by up to $1 million in some areas. This trend is driven by affordability pressures and a desire for well-located housing. The demand is particularly strong for townhouses and units within 20 kilometers of the Melbourne CBD and Brisbane’s outer suburbs. The mismatch is indicative of a broader shortage of large, high-quality homes in these cities.
- Property listings (Source: SQM Research)
A surge in new property listings in May 2025 led to a 4.2% increase in residential property listings nationwide, reaching 256,628. This rise was driven by Sydney, Melbourne, and Brisbane, which recorded monthly increases of 8.9%, 8.6%, and 8.6%, respectively. However, the number of distressed listings fell by 9.9% to 4,592, indicating that the property market has weathered past economic challenges and is now well-positioned for growth.
- CoreLogic Auction Results (Week ending 8 June 2025)
(Total Auction / Clearance Rate)
– Sydney: 625 / 58.1%
– Melbourne: 475 / 65.9%
– Brisbane: 133 / 56.4%
– Perth: 8 / 75%
– Canberra: 50 / 56%
– Adelaide: 82 / 59.8%
– Tasmania: NA / 0%
– Combined Capitals: 1,373 / 60.7%
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