Property Prices Are Climbing Again—What’s Fueling the Surge?
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
There’s been a lot of noise in the media recently following the RBA’s surprise decision to cut the cash rate by 0.25%. And while opinions vary, what we’re seeing on the ground is clear—buyer confidence is back, and momentum in the property market is building.
Since the rate cut, enquiry levels across the Sunshine Coast have surged. Open homes are busier, offers are stronger, and properties—especially those priced under $800,000—are receiving significant attention. In fact, one of our recent listings in that price bracket saw over 1,200% more enquiry than average, reinforcing just how competitive the affordable end of the market has become.
National data backs this up. According to PropTrack, house prices increased by 0.39% in May, pushing annual growth to 4.12%. Since March 2020, national dwelling prices have climbed by nearly 50%. Closer to home, Brisbane prices rose by 0.24% in May and are up 8.38% year-on-year. Since the onset of the pandemic, Brisbane has experienced an extraordinary 85.3% price increase.
But price growth continues to be underpinned by a persistent problem—lack of supply. Housing approvals are falling. In April alone, dwelling approvals dropped by 5.8%, following a 9.1% drop the month before. Unit approvals are now 49% below their 2016 peak, and approvals across the capital cities have declined by 30%. This ongoing slowdown in new builds will only deepen the supply shortfall over the coming years.
Michael Matusik recently highlighted this issue, suggesting that Southeast Queensland will need between 38,000 and 54,000 new homes annually to meet the needs of a growing population—especially with around 700,000 new residents expected by the 2032 Olympics. At the moment, we’re simply not building fast enough to keep pace.
Affordability continues to be squeezed. The median house price in SEQ is sitting around $1 million, and the lower quartile is now approximately $800,000—up 60% since 2021. Back then, 60% of house sales were under $700,000. Today, only 15% fall within that price range. This puts immense pressure on buyers, especially those trying to enter the market for the first time.
The challenge now is to find workable solutions. We’re seeing a shift toward smaller lot sizes under 350m², and a growing push for more high-density living. But these alternatives are often accompanied by higher build costs and increased ownership expenses like body corporate fees, making them less accessible than they appear.
What’s really needed is the development of more land for detached homes at accessible price points—alongside strategic planning and support for genuine affordable housing options. Without this, the imbalance between demand and supply will continue to drive prices higher.
Looking ahead, there’s growing confidence that this spring could be one of the busiest selling seasons we’ve seen in a while. Many experts are predicting more rate cuts later this year—potentially up to 0.5%—which could further stimulate demand and push prices even higher. Whether you’re buying or selling, timing matters.
For buyers who are already pre-approved and ready to go, acting now could put you ahead of the competition. If you’re selling—especially if your property sits under the $800,000 mark—there is a strong pool of qualified, motivated buyers actively looking.
And if you’re preparing to sell, I’ve also written a detailed Seller Preparation Guide to help you get the most from your sale. It’s available via the link below and is worth a read if you’re considering a move. CLICK HERE
As always, I’m here to help if you have any questions about the market or your next property step.
-
Request Your Free Market Appraisal Today!
-
SUBSCRIBE to stay up to date with all the latest property insights and news.
-
The Sunshine Coast Seller’s Guide to Choosing the Right Agent
-
If you are in buying or selling mode, I’ve also created this free resource – Sunshine Coast Home Sellers and Buyers Guide.
