In 2025, the Australian real estate market continued to show interstate divergence. Among them, Queensland outperformed New South Wales with strong population growth, stable rental returns and long-term infrastructure planning, becoming a focus state for local and international investors.
Brisbane becomes a hotbed of migration as migration continues to rise
According to the Australian Bureau of Statistics (ABS), Queensland is expected to experience the highest net population inflow in the country between 2023 and 2024, with over 120,000 people moving to the state, primarily from New South Wales and Victoria. Brisbane, the Gold Coast, and the Sunshine Coast are the main destinations for this influx.
This demographic dividend directly boosted residential demand. According to data from June 2025, Queensland house prices rose by 7.8% year-on-year, with the area with the lowest house price of 25% seeing an increase of 14%, far higher than Sydney's average growth of about 3%.
Stable rental income and one of the lowest vacancy rates in Australia
In addition to rising house prices, Queensland's rental market also performed strongly. In May 2025, Brisbane's residential rents saw an annual increase of 12.11% per 3T, while the local rental yield reached 4.51% per 3T, ranking among the highest among Australian capital cities.
Vacancy rates in Brisbane and surrounding areas are generally below 1%, with the Gold Coast even dropping to 0.7%. This tight rental market helps secure cash flow, making it attractive to highly leveraged investors.
Infrastructure and Olympic dividends boost medium- and long-term potential
The Queensland government is actively investing in major infrastructure. The 2032 Brisbane Olympics will drive long-term development of roads, rail, and sports venues. Projects like the Cross River Rail, Brisbane Metro, and the Kuraby to Beenleigh rail upgrade will enhance transportation accessibility and enhance property value.
At the same time, the state government's "SEQ Regional Plan 2023" has included the Brisbane metropolitan area in several key growth corridors, such as Logan, Ipswich and Caboolture. These areas are known for their low overall prices and shortage of supply, making them potential hotspots for investors to deploy long-term investments.
A more friendly tax and regulatory environment attracts foreign capital
Compared to New South Wales, Queensland offers more relaxed stamp duty policies and real estate transaction approval processes. There's no Vacant Residential Land Tax, and development application processing times are shorter, facilitating faster project turnarounds.
In addition, Queensland has adopted an encouraging attitude towards Build-to-Rent (BTR) projects, providing tax exemptions and land use flexibility, opening up market opportunities for institutional investors.
NSW market remains high but not stable, investment risks rise
In contrast, the New South Wales market is facing downward pressure. Sydney housing prices have yet to fully recover from their peak, and several districts are forecast to weaken further by 2025. This, coupled with high living costs and increased holding costs for investment properties, is weighing on investor confidence.
Several real estate research institutions have even predicted that some mid- to high-priced areas in Sydney may record negative growth of 0 to 2% in the next 12 months, in stark contrast to Queensland.
Investment strategies for capital and population moving north should be adjusted accordingly
The housing market trend in 2025 is clearly pointing towards Queensland. For both local and international buyers looking to expand their portfolios or invest in the long term, Queensland offers superior housing price bases, rental returns, and policy incentives compared to New South Wales. Combined with macro factors such as urban infrastructure development and demographic shifts, the overall return potential of Queensland real estate is expected to further expand.
If investors want to seize this turning point, they should plan early and focus on emerging core areas such as Brisbane's south, Logan, Ipswich, or explore innovative holding models such as Build-to-Rent to welcome the new golden decade of the Australian property market.
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