Revealed: Affordable places to buy a home in Qld
New research has uncovered where real estate is still affordable for homebuyers and investors looking to get on the property ladder for less as Queensland surges.
Queensland’s top spots for affordable real estate have been revealed with new analysis pinpointing the regional areas where homebuyers and investors can get on the property ladder for less.
The PRD ‘Smart Moves: Regional Edition 2025’ highlighted the top ten affordable regional markets on the Australian east coast, with three Queensland spots making the list.
PRD chief economist, Diaswati Mardiasmo said the report looked at key criteria including affordability, rental yields and future projects to determine the Cairns, Whitsundays and Southern Downs regions were the best bets in Queensland. These hotspots were almost 30 per cent cheaper than Brisbane.
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Dubbo, Port Macquarie-Hastings and Shoalhaven in New South Wales, Bendigo, Greater Shepparton and Wodonga in Victoria, and Burnie in Tasmania also made the top 10 list.
Dr Mardiasmo said with property affordability reaching a new low at the end of last year, the dream of owning a home in a capital city was slipping away for many Australians.
“The national Home Loan Affordability Index fell to just 20.0 points in the December quarter of 2024 – the weakest it’s been in more than a decade,” she said.
“Mortgage repayments are now consuming over half of household income.
“Meanwhile, first homebuyers must commit to a higher level of mortgage debt, by an extra 5.4 per cent (nationally).”
That figure was even higher in Queensland, up 11.7 per cent.
Dr Mardiasmo said the February interest rate cut to 4.1 per cent offered a brief boost, but it wasn’t enough to shift the metro markets.
“Instead, buyers are turning to regional locations with lower entry prices, better rental returns, and clear growth potential,” she said.
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In addition to Cairns, Whitsundays and Southern Downs, the report flagged Gladstone, Townsville, Mackay, Toowoomba, Ipswich, Bundaberg and Fraser Coast as affordable Queensland regions, with median house prices up to 46 per cent cheaper than Brisbane.
“When looking at local government areas (LGAs) in each state, Queensland has a higher percentage with affordable real estate and ready to sell stock planned,” Dr Mardiasmo said.
PRD data showed 87.3 per cent of LGAs in Queensland were “affordable”, meaning they were cheaper than Brisbane, while 54 per cent were affordable and had ready to sell stock.
In comparison, just 36.7 per cent of NSW LGAs were affordable and had stock, while that figure was 46.2 per cent in Victoria and 44.3 per cent in Tasmania.
The PRD ‘Smart Moves’ report found Cairns was standout for buyers chasing lifestyle and opportunity, with home prices on the up, good returns for investors and new projects on the horizon.
“New housing supply is on the way, with about $1.8b worth of developments planned for 2025,” the report said.
“Even so, supply isn’t expected to meet demand fully, especially for freestanding homes.”
The region has a median house price of $650,000, a median land price of $325,000 and a median unit price of $371,000.
The vacancy rate is 0.5 per cent with rental yields of 4.8 per cent for houses and 5 per cent for units.
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Ray White Cairns selling principal, Ray Murphy said the region offered affordability and good returns for homeowners.
“I can see why we made the cut,” he said.
“Cairns has seen quite a large shift in prices, but compared to national prices, there is so much opportunity here.
“There’s also a good lifestyle, especially at this time of the year.”
Mr Murphy said Cairns was popular with both owner-occupiers and investors.
“At the moment one in every three transactions is to an investor, mostly from Melbourne, Sydney and Brisbane,” he said.
“Cairns is still quite transient, our vacancy rate is below 1 per cent and people are screaming for rentals.
“Gone are the days of buying a property for $500,000 and renting it for $500.
“Now a $600,000 home generally achieves a rent return of around about $750 to $800 per week.”
Ray White Cairns sales director, David Murphy said the Cairns market offered solid capital gains and rental yields.
“It’s quite common for properties to achieve 4.5 to 5 per cent net return in just cash flow and, on top of that, capital growth of 7 to 11 per cent,” he said.
“The returns in Cairns have been likened to mining town hotspots, but whereas the region once relied heavily on tourism, the local economy is now much more stable and self-sufficient.”
The Southern Downs region west of Brisbane made the PRD list for its affordability, growing popularity and job prospects.
“An estimated $1.9b worth of new projects is planned to launch in 2025, including the Toowoomba to Warwick Pipeline (major infrastructure) and the Sugarloaf Road Subdivision (42 new residential lots),” the report said.
Property prices in the Southern Downs had shown impressive growth over the past decade with land prices up 95.2 per cent and house prices up 87.9 per cent between 2014 and 2024.
The region has a median house price of $502,500, a median unit price of $302,500 and median land price of $305,000.
The vacancy rate is sitting at 0.4 per cent with rental yields of 4.5 per cent for houses and 5.3 per cent for units.
The PRD analysis determined the Whitsundays had been one of the state’s strongest growth stories in the past five years.
“Around 4000 new residents have moved into the region since 2018 — proof that it’s more than the beaches pulling people in,” the report said.
“The Whitsundays is offering a rare mix right now (of) strong lifestyle appeal, decent affordability compared to Brisbane, low vacancy rates and steady returns.
“But the window of opportunity is narrowing.”
The region has a median house price of $570,000, a median unit price of $410,000 and median land price of $240,000.
The vacancy rate it sitting at 1.3 per cent with rental yields of 3.9 per cent for houses and 5.3 per cent for units.
TOP 10 AFFORDABLE REGIONAL AREAS
Cairns, QLD
Whitsundays, QLD
Southern Downs, QLD
Dubbo, NSW
Port Macquarie-Hastings, NSW
Shoalhaven, NSW
Bendigo, VIC
Greater Shepparton, VIC
Wodonga, VIC
Burnie, TAS
(Source: PRD)
Originally published as Revealed: Affordable places to buy a home in Qld