When deciding where to buy property in Queensland, one of the most important considerations is how far your dollar will stretch. Brisbane, as the state’s capital, offers a bustling urban lifestyle and strong economic opportunities, but regional Queensland has become increasingly attractive for its affordability and lifestyle benefits. With CoreLogic data showing distinct trends in both markets as of March 2025, let’s explore where your dollar goes further and what it means for your mortgage.
Brisbane: A Competitive Market with Rising Costs
Brisbane continues to be one of Australia’s strongest-performing property markets. According to CoreLogic data from March 2025, Brisbane’s median house price has reached $977,381, reflecting an annual increase of 9.4%. Meanwhile, the median unit price in Brisbane stands at $690,650, with units outperforming houses in terms of annual growth at 15.2%.
This growth is driven by several factors:
- Population Growth: Brisbane remains a magnet for interstate migration, with Queensland leading the nation in net migration.
- Infrastructure Development: Projects like Cross River Rail and the Brisbane Metro are enhancing connectivity and boosting demand.
- Low Supply: Listing volumes remain below long-term averages, intensifying competition among buyers.
However, this demand comes at a cost. With interest rates hovering around 5.89% variable for owner-occupied loans, buyers face higher monthly repayments. For example:
- A $977,381 house with a 20% deposit would require a loan of approximately $781,905.
- At 5.89%, monthly repayments over 30 years would be around $4,620.
For many buyers, particularly first-home purchasers, these figures make entering the Brisbane market a significant financial challenge.
Regional Queensland: Affordability and Lifestyle Appeal
In contrast to Brisbane’s high prices, regional Queensland offers significantly more affordable housing options. CoreLogic data shows that median house prices in key regional centres like Townsville and Rockhampton are approximately:
- Townsville: $552,640
- Rockhampton: $525,000
- Toowoomba: $510,000
These prices represent substantial savings compared to Brisbane and make regional areas particularly appealing to first-home buyers and investors.
For example:
- A $525,000 house in Rockhampton with a 20% deposit would require a loan of $420,000.
- At 5.89%, monthly repayments over 30 years would be around $2,490—a saving of more than $2,100 per month compared to Brisbane.
Beyond affordability, regional Queensland offers other advantages:
- Higher Rental Yields: Investors can benefit from stronger rental returns due to lower purchase prices and steady tenant demand.
- Lifestyle Benefits: Regional areas provide a slower pace of life with access to natural attractions like beaches and national parks.
- Economic Growth: Infrastructure investments and local industries (e.g., mining in Mackay or agriculture in Toowoomba) are supporting regional economies.
Where Your Dollar Goes Further
The choice between Brisbane and regional Queensland ultimately depends on your priorities—whether you value urban amenities or affordability. Here’s how the two compare:
What It Means for Your Mortgage
The differences between these markets have significant implications for your mortgage:
- Affordability and Borrowing Power:
- In regional areas, lower property prices mean smaller loans and reduced financial stress.
- In Brisbane, higher borrowing amounts may stretch budgets further.
- Interest Rates Impact:
- With interest rates at approximately 5.89%, even small differences in loan amounts can lead to significant variations in monthly repayments.
- Investment Potential:
- Regional areas often offer higher rental yields due to lower purchase costs.
- However, Brisbane’s long-term capital growth prospects may appeal more to investors seeking equity gains.
- Lifestyle Considerations:
- While affordability is crucial, lifestyle factors like proximity to work or schools may influence your decision.
Market Trends to Watch in 2025
Both markets are expected to see continued growth this year but at varying rates:
- In Brisbane, CoreLogic forecasts steady price increases as demand outpaces supply.
- Regional areas like Townsville could see sharper gains due to affordability-driven demand and interstate migration.
Interest rate movements will also play a key role. If rates stabilize or decrease later in 2025 as anticipated by some analysts, buyer confidence could improve across both markets.
Conclusion
The decision between Brisbane and regional Queensland comes down to your financial goals and lifestyle preferences. If you’re looking for long-term capital growth and can manage higher repayments, Brisbane remains a strong contender. On the other hand, if affordability and reduced financial pressure are your priorities—or if you’re seeking an investment with strong rental yields—regional Queensland might be the better choice.
No matter where you decide to buy, understanding how your dollar stretches in each market is crucial for planning your mortgage effectively. Working with an experienced mortgage broker can help you navigate these decisions and secure the best loan for your circumstances. Click Here to arrange for one of our Specialist Brokers to give you a call and answer your questions. CALL NOW – (07) 3889 9250
