11/06/2026
Growth Persists - Queensland Housing Market Rises Despite Emerging Headwinds
Despite economic headwinds, Queensland's property market posted strong gains in the March 2026 quarter, driven by tight supply and robust demand.
• Houses: The state-wide median house price climbed 4.21% over the quarter to $990,000, marking a substantial 15.7% increase year-over-year.
• Units: Outperforming houses in quarterly growth, the median unit price jumped 4.81% to $817,500, surging 17.19% compared to the same period last year.
While Queensland’s property market remains remarkably resilient and continues to outperform much of the country, a distinct shift toward caution is underway.
REIQ CEO Antonia Mercorella noted that while price growth showed no signs of slowing down by the end of March, "fear and trepidation" are increasingly influencing buyer behavior. Consumers are increasingly anxious about future borrowing costs and broader cost-of-living pressures on household budgets.
Investor sentiment has taken a notable hit following recent Federal Budget announcements.
• The Catalyst: Proposed changes to negative gearing and capital gains tax reforms.
• The Impact: These unexpected tax changes have created widespread nervousness, denting investor confidence despite the market's strong on-paper performance.
The market is currently caught between powerful opposing forces:
• Low listing volumes, a severe undersupply of new housing, and booming population growth continue to prop up property values.
• Deepening affordability constraints, weakening consumer confidence, and global/local economic pressures threaten to moderate the future pace of growth.
Data reveals that Queensland is significantly lagging behind its construction targets under the National Housing Accord:
• Annual Target: 49,300 completed homes per year.
• Current Output: 32,900 dwellings completed in the 12 months leading to Q4 2025 (a 33% shortfall).
• Future Pipeline: March 2026 building approvals sat at 3,975 units in trend terms—3% below the required monthly target of 4,100—hampered by high construction costs and industry capacity constraints.
To preserve the path to homeownership and stabilize the market, government must take sustained action to:
• Boost housing delivery and improve construction productivity.
• Streamline the process for bringing the right mix of housing to the market.
• Support investor activity alongside first-time buyers to ensure the rental population is protected and rental prices remain stable.
