PHOTO: GOLD COAST, AUSTRALIA. FILE
Australian Regional Housing Markets Set to Surge in 2025 as Big City Prices Decline
As the Australian property market enters 2025, regional Queensland cities are emerging as clear winners in a landscape where house prices in major metropolitan areas like Sydney, Melbourne, and Canberra are predicted to stagnate or decline. Propertyology Research Director Simon Pressley has forecasted double-digit price growth in select regional markets, presenting opportunities for both homeowners and investors seeking value in a shifting housing market.
Regional Queensland: The Rising Stars of 2025
Affordable and picturesque, Queensland’s regional cities are capturing the spotlight. Among the standout performers are Townsville, Mackay, and Cairns, with Townsville leading the charge.
Townsville: Leading the Boom
With projected house price growth of 25-30% in 2025, Townsville is set to dominate Australia’s property market. Known as the largest city in northern Australia, Townsville offers an attractive blend of affordability and lifestyle. The median house price in South Townsville is $539,771, following a 24% rise in 2024, making it attainable for buyers earning an $83,000 salary with a 20% deposit.
House prices across affordable regional Queensland cities are expected to keep surging by double-digit figures in 2025 as they fall in Australia’s biggest cities (pictured is a house in South Townsville on the market in the low $500,000s)
Mackay: High Yields and Strong Growth
Mackay is another northern Queensland gem expected to grow by 12-16%. Investors are drawn to the city’s above-average rental yields and affordable housing. South Mackay’s median house price sits at $462,902, reflecting a 16.5% rise last year. It remains accessible to buyers earning $71,216 annually.
Cairns: Strategic Growth in the Tropics
Cairns, known for its tropical climate and strong employment base in construction, health, and defense, is projected to grow 7-11% in 2025. The suburb of Parramatta Park offers affordable options, with a median price of $596,882, up 7.2% last year.
Cairns in far north Queensland was expected to have growth of 7 to 11 per cent. Parramatta Park near the city still has an affordable mid-point house price of $596,882 (pictured is a house in that suburb that sold for $631,000 in November 2024)
Southern Queensland: Toowoomba and Beyond
Toowoomba, Queensland’s inland hub, continues its upward trajectory with anticipated growth of 9-13%. Known for its affordable housing and strong regional economy, the city remains a hotspot for investors and homebuyers alike. Inner-city suburbs like Newtown have seen prices rise by 17.5% to a median of $580,097.
Sunshine and Gold Coasts: Lifestyle Appeal Fuels Growth
The Sunshine Coast and Gold Coast are also expected to perform well, with forecasted growth of 12-16% and 10-13%, respectively.
- Moffat Beach, Sunshine Coast: This picturesque suburb recorded a 14.2% rise, bringing its median house price to $1.464 million.
- Burleigh Waters, Gold Coast: The median price climbed 13.2% to $1.681 million, highlighting the continued demand for coastal living.
The Sunshine Coast was expected to see a 12 to 16 per cent boost. Moffat Beach near Caloundra was a particularly strong performer, seeing a 14.2 per cent rise to $1.464million (pictured is a house that sold for $1.6765million in September)
Beyond Queensland: Perth and Adelaide Shine
While Queensland dominates the regional growth narrative, other parts of Australia are also set for strong performance.
- Perth: The West Australian capital is forecast to see 10-14% growth, building on 2024’s remarkable 20.7% rise, with a current median house price of $842,227.
- Adelaide: With growth expected between 8-11%, Adelaide continues its steady ascent. Its median house price increased 13.4% last year to $865,563.
The Struggles of Australia’s Largest Cities
In stark contrast, Australia’s biggest cities face challenges in 2025.
Sydney
Sydney’s house prices are expected to fall by 3-5%, following a modest 3.5% rise in 2024. The city’s median price of $1.483 million and low rental yields have deterred investors.
Melbourne
Melbourne, grappling with high taxes and state debt, is predicted to see prices fluctuate between a 1% rise and a 2% decline. Its median price fell by 2.3% last year to $923,422.
Canberra
The national capital is expected to see a 1-4% decline, reflecting its cooling market. With a median price of $972,753, Canberra has faced outmigration and declining demand.
Drivers Behind Regional Growth
Several factors contribute to the robust performance of regional markets:
- Affordability: Regional cities offer significantly lower entry points compared to metropolitan areas, attracting first-time buyers and investors.
- Lifestyle Appeal: Proximity to beaches and natural attractions continues to draw Australians seeking a change from urban living.
- Employment Opportunities: Infrastructure investments and job availability in sectors like health, construction, and defense fuel regional growth.
- High Rental Yields: Cities like Mackay and Townsville provide attractive returns for property investors.
Outlook for Investors and Homebuyers
With 2025 shaping up to be a transformative year for the Australian property market, regional Queensland offers some of the most compelling opportunities. As interest rates potentially ease, these areas provide a combination of affordability, lifestyle, and growth potential.
For those considering entering the property market or expanding their portfolios, the trends are clear: regional Queensland cities are the places to watch. Whether it’s Townsville’s record-breaking growth, Mackay’s high yields, or the Sunshine Coast’s coastal allure, the smart money is heading north.
25 house price predictions for 2025
SOURCE: THE DAILY MAIL