Affordability drives demand as investors and first home buyers fight over homes

House prices in one Rockhampton suburb jumped almost 40 per cent over the past year, new data reveals. Check our interactive graphic to see how your suburb went.

Rockhampton City was in demand in the March 2025 quarter. This Campbell St house sold for $375,000.

Demand for Rockhampton region homes remains one of the strongest in the state with a median house price rise of 25 per cent for 12 months to the end of March.

The Real Estate Institute of Queensland’s report for the March quarter shows the region’s annual median price is now $500,000 based on 2176 sales.

Rockhampton City ($360,000) led the way for the suburbs with a huge annual median price rise of 40.6 per cent, while Park Avenue ($442,250, 30 per cent) Koongal ($452,500, 29 per cent), West Rockhampton $492,500, 31.5 per cent) and Gracemere $520,000, 27.7 per cent) were also standouts.

At the upper end of the market, The Range increased 22.6 per cent to $613,000, and Norman Gardens 19.2 per cent to $620,000.

However the price movement for the three-month period was almost flat at only 1 per cent for a median of $530,000 from 438 sales.

REIQ Rockhampton Zone Chairman Noel Livingston said the steady three-month figure was due to the heavy investor and first home buyer competition targeting lower priced homes.

REIQ Rockhampton Zone Chairman Noel Livingston.

“The movement is at that end of the market up to about $600,000,” he said.

“It’s a two-pace market up to about $650,000 but then it slows down a bit.”

“It all comes back to those affordable areas and that ($600,000) price range where you’ve got first buyers and southern investors fighting over the same properties and forcing prices up.

“They’re (the investors) just looking for yields (the rental vacancy rate remains under 1 per cent). They’re ringing (agents), getting rental appraisals on the property to see if the yields (returns) stack up to 6 per cent and then they’re taking them.”

This Schmidt St house in Frenchville, North Rockhampton sold for $1.2m in January 2025. It contains 4 bedrooms, 2 utility rooms, 2 bay shed, side access, rumpus, large garage, internal stairs.

Mr Livingston said Rockhampton, Townsville (26.45 per cent), Gladstone 23.8 (per cent) Mackay (22 per cent) were the top performing regions for the 12 month period, well in front of the bigger South Queensland metro markets with Brisbane at 11.8 per cent.

An indication of demand for cheaper regional homes was a surge in Mount Morgan’s median price of 39.3 per cent to$340,000 for the March quarter.

“That’s affordability once again,” Mr Livingston said.

“That’s what will drive some people out of the capital cities. You might find it becomes easier to get professionals to the regions because they can get into the property market here.”

This Agnes Street home sold for $1.07 million in the March quarter 2025.

Mr Livingston, the manager of client relations in sales and marketing at Pat O’Driscoll Real Estate, said the new home market was also beginning to pick up as building competition increased.

“The construction industry is coming into its own,” he said.

“Our building costs are still relatively high but what you’re going to see is the southern builders starting to move into our market.

“So these construction prices will trim right up and building will become a viable option.”

Originally published as Affordability drives demand as investors and first home buyers fight over homes