In most capital cities, home prices are expected to rise once again, reaching record levels.

Among Queensland’s Sunshine Coast and Gold Coast, Perth, Adelaide, Sydney and Brisbane are expected to set fresh house price records in the 2025 financial year.

During the 2025 financial year, median house prices in Perth will reach $850,000, $1.7 million in Sydney, $984,000 in Adelaide, and $999,000 in Brisbane, according to the property marketplace.

Regional Australia is also expected to see record median house prices.

Unit prices are expected to rise the most in Sydney, Brisbane, and Adelaide.

The forecast unit growth in Sydney is set to remain similar to the 2023 calendar year and 2024 financial year, while growth in Melbourne and Canberra is expected to accelerate slightly.

During the 2025 financial year, unit prices are forecast to reach new records in Sydney, Brisbane, Perth and Adelaide, with Sydney’s median price forecast to be $855,000.

Population growth, construction challenges and low borrowing power will be the reasons behind Australia’s expected price growth, says Domain research and economics chief Nicola Powell.

Increasing single-person households and decreasing household sizes are causing housing demand to increase, further compounded by migration, Powell said.

Because of land scarcity, weak building approvals, and high construction costs, home building has also struggled to keep up with population growth.

According to Dr Powell, the third and fourth stages of tax cuts come into effect on July 1, meaning more money will hit Australian households and increase borrowing capacity.

Depending on the budget, that could mean more borrowing capacity and a push into the market for some.

According to Powell, Australia’s home prices will be further pushed up by all three factors.

The continued rise in property values is good news for Australians who own homes, but getting into the property market has become increasingly difficult for many Australians.”

In order to balance the housing market, Dr Powell said that the government should accelerate development approvals and incentivize construction.

The domain pointed to stagnant wages, rising unemployment, and deteriorating consumer sentiment as downward price drivers.

The market is now pricing in potentially four rate cuts next year with inflation at three percent, so we may see a rate cut by year’s end. In a market where Perth and Brisbane house prices remain highly divergent from Melbourne and Sydney, what would be the impact of a price cut?

Various methods exist to calculate the impact, and it is difficult to distinguish between the impact of a cut and the impact of other factors such as population growth, state-based economic growth, and construction costs. Our approach has been very simple, however. How have rate cuts affected pricing the month after they were made? Especially when there haven’t been any rate cuts for a while.

This analysis looked at house prices across Australia and by capital city, and what happens to pricing after a cut. Only cuts occurring after six months of no movement will be considered. In November 2011, February 2015, May 2016 and June 2019, this has occurred four times since January 2011.

There is no surprise in the results. Following a rate cut in January 2011, Sydney has seen the biggest jump, followed by Melbourne, then Canberra. It makes sense that these cities would be more sensitive to borrowing costs since they are all the most expensive in Australia. As a result of relatively stagnant markets and lower interest rate sensitivity, Perth and Darwin saw no increase.

Is there a possibility that it will happen again? There will likely be a slight difference, as they are every cycle.
Our strongest markets, Perth and Brisbane, are currently less sensitive to interest rates and are likely to gain even more strength from a rate cut.
Pricing has fallen in some months this year in Sydney and Melbourne, which are comparatively weak.
Once rates are cut, it is likely that conditions will improve somewhat.

Located just two hours from Sydney and one hour from Canberra, Goulburn is a city on the rise. In addition to a strong economy and booming infrastructure, residents have access to country-style living, rich heritage, and plenty of recreational opportunities.

‍

Opportunities for employment

‍
A wide variety of industries are located in Goulburn, which offers scenic, countryside drives. Health care, retail, and public administration businesses make up around 2,432 businesses. Among the largest employers are Goulburn Mulwaree Council, NSW Health Service, NSW Police Academy, and Coles Supply Chain.

Many government employees rent or own property in Goulburn due to its easy commute to Canberra. Additionally, many residents commute to Sydney via train from Campbelltown station to avoid the city traffic, which is a 1.5-hour drive. In the future, agriculture, forestry and fishing, and manufacturing will be the fastest-growing sectors.

Local economies are boosted by infrastructure

The future Canberra-Sydney fast rail corridor passes through Goulburn. Commuters will be able to travel in 30 minutes instead of 2.5 hours. This network continues to progress with the establishment of the High-Speed Rail Authority and $500 million of Federal Government support for the initial Newcastle-Sydney section.

As the population grows, healthcare demands will rise. A $150 million investment was recently made in Goulburn Hospital as part of the Health Service Redevelopment. More jobs in health will boost the local economy, while residents will receive high-quality healthcare.

‍

Population growth projections

The population of Goulburn is expected to grow rapidly over the next two decades. By 2022, 32,500 people will live in the city. A 14.4% increase is expected by 2036, bringing the number to 37,200. To meet demand, over 2050 homes will need to be built over the next 15 years. This equates to 140 dwellings per year. Currently, the NSW Government is in the process of planning infrastructure, housing, and services.

There are five Queensland regions that have been identified as “stand-out” investment hotspots and labelled as the next places to buy “before the boom”.

According to InvestorKit’s Overvalued or Undervalued research, the top affordable locations will boom over the next 12 months across capital cities and regional areas.

According to InvestorKit founder Arjun Paliwal, over 80 percent of overvalued cities and regions experienced a housing price decline last year. Over 90 percent of undervalued cities and regions experienced average growth of more than 7 percent.

While the Australian housing market has certainly been tough, our data suggests there are still opportunities to find a growth investment at an affordable price if you look for undervalued markets with solid fundamentals.”

In Queensland, InvestorKit recommends Bundaberg, Townsville, Rockhampton, Warwick and Gatton for investors.

“The local economies of these regions are either strong or strengthening,” Mr Paliwal said.

Their unemployment rates are at their lowest level since over a decade ago

There is a rapid increase in GRPs (gross regional products) and population growth rates in all of them are higher than the last five years.”

The high demand in each of the regions identified contributed to limited supply, and Mr Paliwal added that each town had great growth prospects in addition to being affordable. All five regions have low inventory levels, under three months of stock, indicating high market pressure.

In comparison with pre-Covid times, there is a decline in available stock on the market.”

According to the LGA, Bundaberg is the most expensive; Townsville is the most expensive; Rockhampton is the most expensive.

The median house values at a suburb level in Warwick and Roma were $395,000 and $430,000, respectively.

Compared to Melbourne, the median house price in Brisbane LGA is now $1.1 million.

In Queensland, tight rental markets have created more demand for rentals, according to Mr. Paliwal.

According to REIQ’s Residential Vacancy Report for March 2024, vacancy rates in Queensland were as low as 0%, with rental availability remaining dangerously low across most of the state.

RELATED: QLD vacancy rate “dangerously low”

There is a rapid increase in rents in these regions, according to Mr Paliwal.

The crisis-level vacancy rates in four out of five regions are less than one percent, while the vacancy rate in the fifth region (Gatton) is below the two percent high-pressure benchmark.

We expect the fast-growing rental prices, coupled with the affordable housing prices and high yields, to drive more renters to buy and attract more investors, driving housing values upward.

Recent research by Digital Finance Analytics (DFA) found that close to one million households in Queensland were under financial stress due to the housing crisis and rising costs of living.

More than 320,000 homeowners (more than 45%) in the state were in mortgage stress, spending more than 37 percent of their income on home loan repayments, while nearly 490,000 tenants — 72 percent — were in rental stress, spending an average of 36 percent of their monthly income on rent.

According to Finder, a Queensland school leaver would need to save for 21 years to afford a house deposit.

Graham Cooke, Finder’s head of consumer research, said: “The days when one income earner and a stay-at-home parent could raise a family at home are long gone.”

“Wage growth simply isn’t keeping up with skyrocketing property prices for most people.

“The bank of Mum and Dad makes it easier for some to enter the real estate market, but not all will be able to do so.

According to Paliwal, Queensland remains affordable when compared to other states on the east coast, despite the dire results of both research projects.

The southeast Queensland (SEQ) cities of Brisbane, Gold Coast, and Sunshine Coast are among the most expensive markets in the country.

It is primarily due to incoming migrants from the two major capital cities and overseas that they are so hot.

Prices are approaching the affordability ceiling, which will slow down house value growth.”

Meanwhile, he noted that other parts of the state are more affordable.

According to him, 23 of the 26 SA3 regions outside of SEQ have a median house price under $650,000, while 19 have a median house price under $500,000.

There is much room for improvement in these regions since their last 10-year growth is much lower than the long-term average.

Many of them are very hot due to the combination of affordability, lifestyle, and thriving local economies, so hot that many buyers fear missing out on a great deal.

According to Mr Paliwal, Queensland’s population and economy are among the fastest growing across all states, as well as its property market.

The markets in SEQ and the rest of the state, however, are very different.

In 2020, Bhavi Desai purchased her first piece of real estate. Since then, she has acquired nine more properties, accumulating a portfolio of $10 million.

She has secured a 15 per cent rental yield on her highest cash-flow property to house participants in the fast-growing National Disability Insurance Scheme (NDIS).

“I should be able to reach 25 [properties] without too much stress … after that, I will have to work my magic to keep going,” the Sydneysider said.

AFR Weekend’s analysis of annual Tax Office data shows the 46-year-old investment lending manager is among 20,000 so-called “super investors” who own six or more properties. In 2021-22, hardcore property speculators made an average rental profit of $15,900.

Despite owning just 1% of the 2.27 million rental properties, super investors bought 4.6% of all investment properties with 151,086 properties between them.

Ten percent of investors had at least three properties, and collectively, they held one quarter of all rentals.

With her growing confidence in her investing abilities, Ms Desai began purchasing non-standard assets, including the property that will house NDIS participants next month.

Cash flow was the main reason for buying this NDIS property. Approximately 15% of the rental income is generated there. This is one of the advantages of owning a NDIS [property].

In addition to holding high-growth, low-yield properties, Ms Desai also purchased lower-growth assets with healthy cash flows.

Investors were increasingly likely to be positively geared as they purchased more assets, according to ATO data. Approximately two-thirds of super investors were cash-flow positive in 2021-22, meaning their rental income exceeded various expenses, including interest and strata fees.

However, after 13 interest rate increases by the Reserve Bank of Australia since May 2022, Ms Desai said her portfolio is now negatively geared.

Ms Desai’s “biggest hit” came in 2023 when her fixed terms expired and a 2.5 percent interest rate went straight to 6.5 percent.

While negotiating Labor’s housing shared equity scheme, the Albanese government has said it will not change negative gearing.

In spite of owning ten properties, Ms Desai lives in a rental apartment with her husband. Originally, the couple planned to buy a property for themselves to live in, but in 2020 they switched their focus to investing.

“I wouldn’t describe it as easy. Her advice was to increase your income constantly to be able to support [more borrowing].

Rental property expenses recorded by the ATO in 2021-22 totaled $43.8 billion, with loan interest ($15.8 billion), capital works deductions ($4.3 billion), and council rates ($3.9 billion) being the largest.

She said although her investment journey had been fairly smooth, there had been a few obstacles along the way, such as issues with valuations preventing her from securing financing.

The portfolio’s $10 million value is equivalent to about 50% of her debt, so Ms Desai doesn’t worry about something going wrong.

As long as they can, she and her husband will continue to invest.

There is a lot of pressure on my son right now. As soon as you turn 18, I will give you a mortgage as a birthday gift. I’ll pay your 20% deposit, but you must earn enough to cover your mortgage.”

• Despite rising house prices in the Wide Bay region over 80 percent since 2020, experts say they’re still comparatively affordable.
• Regional house prices and rental markets are under pressure due to migration.
• Where do we go from here? People are looking for “the next Sunshine Coast” and discovering “hidden gems” like Bargara, Moore Park Beach, and Burnett Heads.

Property prices in a sleepy beachside town have soared by more than 80 percent in four years, but an analyst says it’s still “extraordinarily cheap” compared to those in capital cities.

Moore Park Beach in Bundaberg is five hours north of Brisbane, nestled between cane fields and the ocean.

Following a lifestyle change last year, Ms King, 28, and her husband are among the area’s newest residents.

Their mortgage in Brisbane was swapped for an “oasis” complete with kookaburras and a private beach.

“We found this beautiful little town at Moore Park Beach, just 20 minutes from Bundaberg, and found this beautiful house,” she said.

Price comparison

According to PropTrack data, regional Queensland is experiencing the strongest market since the pandemic onset, with home prices surging by 66.5 percent since 2020.

Wide Bay between Gympie and Bundaberg topped the list with values soaring by 80.5 percent.

More than 70 percent of house values rose in Ipswich, Logan-Beaudesert, and the Gold Coast as well.

The median house price in Bundaberg is $522,607, Gympie is $629,775 and Maryborough is $484,153, according to Corelogic.

There is a median price of $1,461,581 in Noosa, and a median price of $817,564 in Greater Brisbane.

As a result of the pandemic, coastal areas have experienced extraordinary growth, according to CoreLogic research director Tim Lawless.

There has been an increase of 82.5% in home values at Moore Park Beach – one of the more affordable coastal suburbs in the Wide Bay region.

In spite of the increase, Mr Lawless said coastal homes in the region were still affordable.

The median or house value at Moore Park Beach or Bargara or Innes Park is still well below $750,000, he said.

“Compare that to a coastal market around south-east Queensland and you’ll see that it’s extremely inexpensive.”

Increasing prices

Migration was a major factor putting pressure on the regional property market, as well as the rental market, although it had slowed in the wake of the pandemic.

Mr Lawless said Queensland is seeing a very strong influx of migrants from interstate as well as overseas.

Despite the fact that regional Queensland is mostly driven by interstate migration, overall population growth is still very strong in the region.”

According to him, there is not enough housing supply to meet demand.

According to Mr Lawless, the number of new homes being built is insufficient to accommodate the number of people moving to the state.

“This means we are seeing … constraints both in the purchase of homes, as well as in the rental of homes, since rental rates are also rising consistently and rapidly.”

A Bundaberg real estate agent said the local market was attracting buyers who had sold and made profits elsewhere, and were seeking a beachside lifestyle at a lower cost.

He said they were looking for the next Sunshine Coast.

The little hidden gems of Bargara, Moore Park Beach and Burnett Heads are starting to gain popularity.”

A traditional characteristic of the region is its “slow and steady” market pace, which appears to be returning after the pandemic boom.

Hotspot of the future on the coast

The Sunshine Coast’s James Jenkinson has purchased land at Bundaberg’s Innes Park and plans to build a house and relocate with his family.

Coastal lifestyle and planned infrastructure projects, including the new $1.2 billion Bundaberg Hospital, attracted the owner of a pipeline plumbing construction company.

In the early 1990s, he compared Bundaberg to areas along the Sunshine Coast.

Initially, we intend to move to a rental and then start building.

The only negative I can mention is finding rentals in Bargara can be a little challenging.”

Beaches instead of Brisbane

They built their first home in Mango Hill before the pandemic and sold it last year to move to Moore Park Beach.

The experience of living here has been absolutely amazing, she said.

My backyard does not normally have turtles laying eggs, but I saw them laying eggs last December.

Through a “security swap”, Ms King said they were able to transfer their mortgage with their lender.

Mortgagees can keep their existing loan structure by changing the property used as collateral.

Our mortgage was not changed, but since the property we bought in Moore Park Beach was at a lower value than what we sold in Mango Hill, we were able to keep the same mortgage,” she said.

Despite the fact that we are not better off financially, we are in a better physical, mental, and emotional place.”

• As population growth and a lack of homes push up prices in regional Queensland, property values are surging. 
• Locals say Wide Bay’s beaches, hot weather, and “bang for your buck” properties are particularly attractive. 
• Property analysts predict the trend will continue.

One coastal region in Queensland is experiencing the most rapid growth in property prices.

In the past five years, property prices in Wide Bay, which includes Bundaberg, Hervey Bay, and Maryborough, have risen between 65-75 percent.

Wide Bay has an “incredibly exciting set of ingredients,” said property analyst Simon Pressley.

A big draw for someone looking to relocate from a big, congested city, such as Sydney or Melbourne, is the cost of housing combined with the lifestyle.

I would argue that it has the best weather in the country.

It’s an economic story, a lifestyle story, and a shortage of housing supply story.”

How does the drawcard work?

According to locals, the boom is due to the region’s beaches, good weather, and large backyards.

After putting two houses on the market in recent years, Bundaberg builder Jake Chappel has experienced growth at work and in his personal life.

It was nice to be on the selling side, he said.

“I feel sorry for the young people who are buying now. But I do not believe [prices] will go down any time soon.

It was probably cheap land and cheap properties at the beginning.

“The climate is usually good. It’s a bit hot right now, but it’s usually pretty comfortable and liveable.”.

As compared to the [Gold and Sunshine] coasts and Brisbane, we have great beaches, great people, and reasonable prices.”

• Beaches, good weather, and big backyards are credited with the boon. (ABC Wide Bay: Johanna Marie)

Growth in the market

Over the past five years, Bundaberg’s property values have increased nearly 75 percent to a median value of nearly $480,000, according to CoreLogic’s report.

A jump of more than 67 per cent had occurred at Hervey Bay to over $615,000, while a jump of almost 66 per cent had occurred at Maryborough to almost $395,000.

With a median value of more than $965,000, the Sunshine Coast has overtaken the Gold Coast region for the highest median value in regional Queensland.

Tim Lawless, head of research at CoreLogic, attributed the high prices to Queensland’s strong population growth.

“We’re also seeing an ongoing trend in internal migration rates where more people are looking for regional housing or being driven to the regions due to job growth or affordable housing.”

Mr Lawless, however, said that high property prices were not good news for everybody.

According to him, home owners have built up quite a bit of equity across the market.

On the other hand, affordability is becoming more difficult for those who do not own a home.

“Household incomes haven’t risen near that amount.”

Preparing to pay a premium

The data didn’t surprise veteran Gold Coast real estate agent David Hamilton.

In his work, he has seen those numbers reflected and does not expect the market to slow down anytime soon.

“The big jump was in COVID years. It’s going to keep going up,” he said.

There has been an increase in interstate arrivals cashing in on the Gold Coast market, which he believes is adding to the already tight market.

Byron Bay, Sutherland Shire, or the eastern suburbs of Sydney are no different from us, Mr Hamilton said.

People want to live here and walk to the beach, and they are willing to pay a premium for it.”

Imagine buying a duplex on your own land at about half the price of a house. Think we’re joking? Think again.

For a much lower price than two similarly situated detached houses, duplexes often produce strong value growth and healthy rental yields.

Here’s a full explanation of how duplexes compare to other types of property and which one could be a better investment.

How does a duplex work?

In a duplex, two homes are joined by a common wall and either exist on a single land title and are owned and sold together, or they exist on separate land titles and are owned and sold separately.

A duplex’s owners must agree to an insurance policy covering both sides.

It depends on the age and jurisdiction of the duplex whether a body corporate is required.

For more information, contact the relevant authority in your state or territory.

How do duplexes and houses differ?

The difference between a house and a duplex is that houses only have one dwelling, whereas duplexes have two dwellings, each with its own entrances.

Is it possible to own half of a duplex?

If the duplex has been divided into two separate titles, you can only buy one half if they are on the same title.

What are the benefits of buying a duplex?

If you are an investor, buying a duplex means you’ll get two rental incomes from one property. If you’re a regular buyer, buying a duplex has several benefits. Building one means you’ll earn almost as much rental income as you would from two detached houses, while saving thousands on land costs, since a duplex requires a lot less space than two detached houses.

If you are a regular buyer, the main benefit is the price tag, which is often half of what you would pay for a similar detached house in the same location. Those seeking a low-maintenance lifestyle in a premium location, such as retirees and downsizers, will be pleased with this news.

“This means you can either get into a better location for cheaper than buying a house in the same area, or, to put it another way, you can buy a house with your own strata land instead of buying an apartment in a similar area without land,” says Eureka Buyers Agents’ Nicole Marsh.

Marsh gives the example of a client with a $700,000 budget who wants to buy a house in a prestige waterfront suburb like Burleigh Waters.

It’s almost half the price for this client to buy a duplex in this premium suburb for under $400,000.

There are also the following perks:

• A single adjoining owner rather than a large number of neighbours;
• As there is only one duplex neighbor to consult, it’s potentially easy to make changes to your own home;
• Marsh says living next door offers the security benefits of having a close neighbor without living “in each other’s pockets.”
• Since you own your own land, you don’t have to give away pets;
• Absence of body corporate fees could boost rental income;
• Your garden requires little upkeep since you own a half-block (300-400sqm rather than 700+sqm).

The benefit of saving lots of money must be weighed against the reduction in privacy.

The following are potential pitfalls:

• According to March, duplex configuration is crucial – “I don’t like duplexes with one unit at the back as the back neighbours might walk past your bedroom windows at night” – side-by-side or corner units are better;
• Consider buying in an area where duplexes are the exception rather than the rule;
• To maximize value, avoid duplexes with different front facades.

Depending on the location, Momentum Wealth’s Damian Collins also believes duplexes are good investments.

A duplex property in the right location can definitely be a good investment option for the right client.

Traditionally, properties with a higher land component value appreciate faster than properties with a lower land component value. People often compare duplexes to apartments.

There are also some downsides to investing in duplexes, according to Collins.

“If you own only one duplex, you are often restricted from doing external work to the property since it is a strata complex. This limits the ways you can make the property more valuable,” he says.

In order to make a great duplex investment, you need to do thorough research, just as you would with any other property you buy.