REIQ chair: Investors back with a vengeance, ‘I feel sorry for first home buyers’

Relentless demand from southern investors pumped up Rockhampton and Gladstone’s market to lead the state for median house price increases in the 12 months to the end of June. NEW DATA

This five-bedroom house in Sleipner Street, Mt Archer comes with with ocean views. It sold for $1.1m in June 2025.

Relentless demand from southern investors pumped up Rockhampton’s property market to lead the state for median house price increases in the 12 months to the end of June.

Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said Rockhampton led the charge with a remarkable 24.25 per cent jump, followed closely by Townsville at 24.18 per cent, Gladstone at 24.14 per cent, and Mackay at 23.47 per cent.

Rockhampton’s median house price for the year reached $522,250 based on 2041 sales while for the quarter it increased 2.71 per cent to $550,000 from 380 sales.

Meanwhile Livingstone Shire Council’s annual median house price leapt 12.86 per cent to $759,000 on 885 sales.

Ms Mercorella said the regional figures were well above the annual median house sales growth for Greater Brisbane at 8.98 per cent and Queensland at 10.96 per cent, which were still nonetheless strong results.

She said the result demonstrated the enduring stamina of the housing market right across the state.

“Particularly in our regional housing markets, first home buyers are seeing more opportunity and relative value, while investors are also attracted to the strong rental yields compared to capital cities,” she said.

This three-bedroom house in Berserker sold for $585,000 in June, 2025.

REIQ Rockhampton zone chair Noel Livingston said despite the sharp rise Rockhampton remained one of the most affordable markets in the state, which was why southern investors were aggressively buying cheaper homes for high rental returns as the region battles a very low vacancy rate.

“The buyers’ agents had drifted north (into North Queensland) momentarily but now they are back with a vengeance,” he said.

“Anything in the affordable bracket which has lifted up to $700,000 now is just getting snapped up.

“I feel sorry for the first home buyers, they just keep getting rolled and keep getting rolled (by investors and buyers agents paying higher prices).

“You need $500,000 to enter the market here to get anything half decent.”

This three-bedroom house in Gordon St, Mount Morgan, sold for $389,000 in June.

Some of the biggest increases for suburbs were Rockhampton City, up 40 per cent to $387,500, West Rockhampton, up 30 per cent to $500,000, and Park Avenue, up 33 per cent to $480,000.

“Across the range, if they’re in that affordable range we are just getting belted,” Mr Livingston said.

He said he had an open home last weekend with 30 groups of people with 10 written offers the same day.

“I sold it for $95,000 more than they (the sellers) wanted,” he said.

“Once you get to the $1 million-plus level which is just now the norm, the competition is far less fierce.

“It’s still a two-paced market, up to about $700,000, although it doesn’t get ugly over $700,000, it slows.”

He said there was no sign of the Central Queensland market slowing down in the near or medium term.

This three-bedroom Gracemere house sold for $955,000 in June, 2025.

Ms Mercorella acknowledged first home buyers were needing to stretch further and were often seeking support from parents or government schemes to get into the market.

“While it’s important to remember these are median prices, that may offer little comfort for first home buyers who feel the first rung of the property ladder is slipping out of reach,” Ms Mercorella said.

“There are some glimmers of hope – we’ve seen a wave of support initiatives from governments focused on first home buyers, while supply side efforts kick into gear.

“It’s now over one year since the stamp duty concession threshold in Queensland was raised in full for existing homes to $700,000 and partially up to $800,000, and four months since stamp duty was abolished for first home buyers of new builds and land in

our state. The $30,000 First Homeowner’s Grant for new builds was also extended.

Median Hiuse prices for major centres in Queensland for the June quarter 2025.

“And there’s more hope on the horizon – it didn’t take long for a state shared-equity home ownership program called Boost to Buy to be oversubscribed with expressions of interest from Queenslanders hoping to get help in closing the deposit gap.

“Similarly, at a federal level, the expanded Home Guarantee scheme 2 has been brought forward to commence next month, 1 October, with property price caps in Queensland increased to $1 million for Brisbane and regional centres, and $700,000 outside of this.”

She said despite property prices climbing and the first step onto the property ladder getting harder, lending data indicated that first home buyer loan commitments in Queensland over the past year had increased and was sitting just above historical averages.

“Recent reductions in the RBA cash rate have contributed to improved market sentiment and borrowing power for many, but the shortage of new homes continues,” Ms Mercorella said.