Queensland property market takes a breath after years of rapid growth

The Queensland property market is experiencing a subtle shift as it adjusts to new economic realities, according to the latest data from the Real Estate Institute of Queensland (REIQ). The June 2026 quarter revealed a modest easing in the state’s residential property median sale prices, a change attributed to higher borrowing costs and recent taxation adjustments.

The REIQ’s report highlights a statewide median house price decrease of 0.91% over the quarter, bringing it just shy of the $1 million mark at $983,000. Despite this quarterly dip, the annual growth remains robust at 16.57%. Similarly, the median price for units fell by 1.22% to $810,000, yet still reflected a 17.29% increase from the previous year.

Antonia Mercorella, CEO of REIQ, described the current market as one characterised by “minor movements,” especially when compared to the exceptional growth Queensland has experienced in recent years. “Queensland’s property market has spent several years operating at full throttle, so any return to a more regular pace will take a bit of adjustment – especially when it comes to buyers and sellers’ expectations,” Ms Mercorella noted.

Despite the quarterly decline, Brisbane and Townsville’s house prices held firm at $1.48 million and $700,000, respectively. In contrast, Toowoomba continued its upward trajectory, with a 3.03% increase to $850,000, reflecting a shift towards more affordable areas outside the southeast corner. “Looking at the major house markets within Queensland this quarter, our capital city remains unchanged, Toowoomba continues to forge on quite strongly, and we’re still seeing prices rising across most regions despite the slight dip in statewide figures,” Ms Mercorella added.

The report also indicates a change in market dynamics, with feedback from agents suggesting a return to more traditional real estate practices. “Agents are telling us the buying frenzy is well behind us and we’re seeing the return of a more measured marketplace,” Ms Mercorella said. “For experienced agents, these conditions aren’t unusual at all. It’s a return to traditional, old-fashioned real estate with more rounded campaigns, more due diligence being undertaken, and longer days on market.”

The shift is not only seen in property prices but also in lending activity. Queensland’s new housing loan commitments fell by 5.9% to 29,543 in the June 2026 quarter, slightly exceeding the national decline of 5.4%. First home buyer commitments declined by 1.2%, with property investor commitments leading the fall at 10.1%. Ms Mercorella highlighted the cautious environment, saying, “As for buyers or sellers, the current cautious environment is not a particularly advantageous position from either point of view.”

The market’s current state is also influenced by consumer confidence, which Ms Mercorella views as crucial moving forward. “Some households are delaying major financial decisions because they want greater certainty around the economy, tax policy, interest rates, and their personal finances,” she explained. However, she remains optimistic about the future, citing Queensland’s population growth, employment opportunities, and lifestyle factors as ongoing support for housing demand.

While the current conditions may be less intense than recent years, Ms Mercorella emphasised that the underlying fundamentals of the Queensland property market remain strong. “While conditions may be less intense than we’ve become accustomed to, the fundamentals underpinning Queensland property remain remarkably solid,” she concluded.

This period of adjustment comes after a significant growth phase, marking a return to a more balanced market environment. As the state continues to navigate these changes, stakeholders remain watchful of the upcoming quarters to determine whether this moderation is a temporary blip or the start of a longer-term trend.