- Rental Market & Vacancy (Source: Property Update)
Unit rents rose strongly across Australian capital cities in November, while house rents remained broadly steady, indicating ongoing competition for rental properties. Sydney remains the most expensive rental market for both houses ($800/week) and units ($768/week), while Hobart is the cheapest for both property types. Vacancy rates increased marginally in most capitals but remain very low (houses below 1.5%, units generally low), maintaining a landlord-favorable market with continued upward pressure on rents. Annual rental increases vary by city, with Adelaide, Darwin, Brisbane, and Perth showing the strongest growth in unit rents (6.7%-11.1%), while Darwin house rents fell sharply by 3.6% month-on-month. - Queensland Building Defects & Construction Quality (Source: Smart Property Investment / QBCC)
Queensland’s 2025 QBCC data reveals the 10 most frequent building defects include internal paint application (1,875 items), steel roof cladding (540 items), timber door/window installation (524 items), and floor tiling (465 items), among others like concrete driveways and waterproofing failures. Repair costs for these defects often significantly exceed the original construction costs, with waterproofing issues averaging $25,000 to fix and causing potential long-term structural and health damage if not addressed early. The QBCC emphasizes that most defects are preventable and calls for shared responsibility between regulators, licensed builders, and homeowners to improve building quality through greater awareness, education, and regulatory reform. Homeowners and investors are advised to monitor construction work closely, document issues in writing, communicate clearly with contractors about resolution timelines, and seek expert building inspections when uncertain about defects. - Queensland Suburbs to Watch — 2026 Hot 100 (Source: PropertyBuzz / realestate.com.au)
Seventeen Queensland suburbs have been identified on the realestate.com.au Hot 100 list for 2026, with growth driven by infrastructure development, affordability, and the 2032 Brisbane Olympics. Inner-city suburbs like Herston and Yeronga are expected to surge in demand due to proximity to Olympic venues and improved transport infrastructure, including the Cross River Rail project. Northern Brisbane suburbs such as Bray Park, Griffin, and Petrie are gaining attention for their family-friendly environments, affordability, and amenities including schools and shopping centers. Western suburbs including Ripley, Lowood, and Plainland, plus Gold Coast areas like Logan Central and Upper Coomera, are emerging as promising markets due to affordability and strong investment potential. Regional hubs including Bundaberg, Townsville, Mackay, and Cairns are recognized for economic diversity, strong rental yields, and price growth, with Cairns experiencing 70 percent home price growth over five years. - Interest Rates & Housing Market Outlook (Source: Cotality / RBA)
The Reserve Bank of Australia held interest rates steady at 3.60%, a decision supported by robust economic conditions and inflation concerns, with significant implications for housing market dynamics. Housing values have increased 7.2% since February despite elevated interest rates, driven by strong buyer demand, limited supply, and improved borrowing capacity from earlier rate cuts. The pace of housing value growth is expected to slow in 2026 as affordability pressures intensify and borrowing capacity constraints tighten for median-income households. Lower-priced housing segments are likely to outperform as first-home buyers and investors are deflected toward more affordable options, while upper-quartile markets in Sydney and Melbourne show signs of flattening demand. - Capital City Performance & Generational Trends (Source: Smart Property Investment)
Capital city property markets showed mixed performance in 2025, with Perth, Brisbane, Adelaide, and Sydney continuing to grow, while Melbourne is positioned to rebound as a standout performer with attractive median prices of $823,495. Interest rate cuts in 2025 stimulated buyer demand, particularly among first-time homebuyers, who were further supported by government incentives including the expanded 5 percent deposit guarantee scheme. Generation X emerged as the real estate portfolio leader with $1.31 million in assets, surpassing Baby Boomers and becoming the generational capital gains winner in Australia’s property market. Younger generations (Gen Z and Millennials) have shifted their property priorities toward walkable suburbs, pet-friendly homes, and environmentally conscious properties, influencing how Australian properties are being constructed and marketed. - Queensland Boost to Buy Scheme Expansion (Source: Smart Property Investment)
Queensland’s Boost to Buy scheme has been expanded with doubled funding and capacity, now offering 500 places with 50% reserved for regional homes, allowing first-time buyers to purchase with just a 2% deposit while the government provides 30% equity for new homes and 25% for existing homes. Eligibility has been broadened to include single buyers earning up to $150,000 annually or households earning up to $225,000, and restrictions on renting out rooms that previously affected eligibility have been removed. The scheme complements existing support measures including the extended First Home Owner Grant and abolition of stamp duty on new properties, aimed at increasing home ownership accessibility across Queensland. - National Housing Market Update (Source: Property Update)
National home values rose 1.0% in November, marking the third consecutive month of 1%+ growth, though the pace slowed slightly from October’s 1.1%. Mid-sized cities (Perth 2.4%, Brisbane 1.9%, Adelaide 1.9%) significantly outperformed major cities (Sydney 0.5%, Melbourne 0.3%), continuing a “two-speed” growth pattern. Record affordability barriers (8.2x value-to-income ratio) and critically low housing supply (40% below average in Perth) are concentrating demand in lower-price segments and affordable capitals. The unit market and investor activity are surging, with investors comprising 41% of national home lending at its fastest pace since December 2014, particularly driven by high yields in cities like Darwin. While upside factors (low supply, resilient demand) currently support growth, significant downside risks including extended high interest rates, serviceability constraints, and potential regulatory intervention are expected to slow price gains into 2026. - Ageing Population & Medical Property Investment (Source: API Magazine)
Australia’s median age is projected to rise to 40 years by 2034-35, with nearly one in four Australians aged 65 or over by 2065, creating accelerating demand for healthcare facilities. The old-age dependency ratio is expected to reach 30.8% by 2034-35, increasing demand for healthcare services while reducing the tax base that supports them. Australia requires substantial expansion of healthcare properties including hospitals, clinics, diagnostic centres, and specialized care facilities to accommodate the aging population. Regional areas are aging faster than capital cities, with median age projected to reach 44.6 years by 2034-35 compared to 36.9 years in cities, creating compelling investment opportunities in regional medical property. Metropolitan markets also offer strong investment potential due to higher population densities, major hospital precincts, specialist referral networks, and superior transportation infrastructure. Medical property investments provide stable, predictable income through long-term leases with quality tenants, as healthcare services represent an essential, non-discretionary need regardless of economic conditions. - Granny Flats & Dual-Income Housing (Source: Smart Property Investment)
Granny flats have emerged as an income-generating investment strategy, with two-bedroom units in Sydney and Melbourne renting for $350-$600 weekly, providing annual gross income of $18,000-$36,000 plus. State planning reforms in Victoria, NSW, Queensland, South Australia, and Western Australia have enabled secondary dwellings to be built without permits and rented to non-family tenants, shifting granny flats from family-only to commercial residential infrastructure. Search trends show “granny flat” and “dual living” have become the fourth and fifth most commonly searched property terms nationally, reflecting buyer interest in flexible, lower-cost housing options amid rising house prices. Industry experts emphasize that effective marketing keywords, accurate property valuations reflecting granny flat premiums, and rapid construction delivery are critical to capitalizing on this growing dual-income property investment opportunity. - Queensland Foreign Investor Duty Reforms (Source: Smart Property Investment)
Queensland has announced reforms to simplify the relief process for foreign investor duties (AFAD and LTFS) to boost housing supply and investor sentiment. The new policy settings, effective December 15, lowered the dwelling threshold for relief eligibility from 50 to 20 and introduced pre-approval processes for residential developers. The reforms broaden consideration of corporate group structures and improve transparency in relief application criteria, aimed at making Queensland more competitive for investment. According to the Property Council of Australia, Queensland has lost approximately 32,872 dwellings worth $17.8 billion since the foreign tax regime was introduced in 2016, primarily affecting Australian-based developers building new housing. - CoreLogic Auction Results (Week ending 14 December 2025
(Total Auction / Clearance Rate)– Sydney: 962 / 52.6%
– Melbourne: 1466 / 58.4%
– Brisbane: 184 / 57.1%
– Perth: 17 / 41.2%
– Canberra: 137 / 58.4%
– Adelaide: 151 / 74.8%
– Tasmania: NA / NA
– Combined Capitals: 2917 / 57.1%
🟦🟨🟦🟨🟦🟨🟦🟨🟦🟨
If you’re interested in staying updated on the Australian housing market, feel free to reach out to us. You can also follow our Facebook page and Instagram for regular updates on new listings, market trends, statistics, and insightful information.
