Queensland’s housing market is tighter than ever. A new PropTrack study ranks Queensland as the third least-affordable state in Australia. Right now, median home mortgage repayments eat up about 34% of a typical household’s income, the highest level in 15 years. In plain terms, most Queensland buyers must use more than a third of their pay on home loans, leaving little wiggle room. As PropTrack economist Angus Moore notes, unlike some other states, Queensland has seen no relief – mortgage costs here have not eased recently.
Demand pressures have even lifted remote markets. For example, in Blackwater (a central QLD town), the median home price jumped about 15% in the past year, much faster growth than anywhere in Sydney or Melbourne. We’ve seen families relocate from expensive southeast Queensland to towns like Blackwater to cut living costs. But this trade-off has risks. Moore warns that when buyers chase affordability in small markets, they push prices up further. “Regional markets tend to be smaller,” he says, so if “a lot of people” move in, it quickly squeezes supply and drives prices higher. In short, spillover demand from the city is fueling rapid growth in some regions even as housing supply remains tight.
Key Takeaways for Buyers
Location vs Affordability: Cheaper towns may offer a lower entry price, but consider the lifestyle and resale trade-offs. Small markets can heat up fast once buyers arrive, so make sure your budget and long-term goals truly fit the area.
Regional Growth Risk: Prices outside the major cities have jumped recently. Some regional hotspots saw gains of 20–30% in a year. Don’t chase the hottest market blindly; look at local fundamentals and future demand, not just past rises.
Timing & Liquidity: With mortgage costs at 15-year highsabc.net.au and experts not expecting a price drop soonabc.net.au, timing is tricky. Be ready to move when a good opportunity appears. Also, remember: it can be harder to sell in a very small market if conditions change, so keep exit options in mind.
Stock Scarcity: Affordable homes are scarce. Limited listings mean bidding competition even in outlying areas. A buyer’s agent can help you find and act on new listings quickly.
Data‑Driven Suburbs: Choose suburbs and towns where there are opportunities for growth and that are relatively cheap based on real statistics (PropTrack, ABS, etc.). For example, according to PropTrack, the median income buyers are only able to purchase 15% of the homes that have been sold throughout the country. This indicates the importance of looking for suburbs and towns where value will be created and where there is potential for growth.
Each buyer has their own particular set of circumstances. At Key2Dreamz, we are buyers' agents and our primary focus is to analyse all of the different markets located throughout Queensland (and Australia) in order to help our clients balance the risk of a location, the amount of money they have to invest, and the investor goals they have set for themselves. We want to assist our clients in choosing suburbs based on data that have sustainable growth and that are not pushing forward at an unsustainable rate.
If you would like to discuss property opportunities available in Queensland with one of our team members, please contact us at +61 439 260 917 or schedule a complimentary consultation with us. Remember to follow us on Instagram and LinkedIn to see our latest up-to-date market trends and success stories.