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The median lot price in South-East Queensland surged to historical highs over the first quarter of 2025, surpassing Melbourne’s land prices for the first time on record.
New research from property services group Oliver Hume has shown that the price of a median lot in South-East Queensland grew 11 per cent over the first quarter of 2025 to a new median price of $437,900.
The latest price growth saw South-East Queensland reach its historically high median land prices, surpassing Melbourne’s.
Additionally, the quarterly growth also saw the region’s land values register $30,000 above Melbourne’s median lot price of $408,000.
Across South-East Queensland, the strongest median lot price growth of the quarter was the increase of 11 per cent in Ipswich, followed by Moreton Bay at 10 per cent and the Redlands at 5 per cent.
Queensland and Northern Territory general manager at Oliver Hume, Dan Ross, said the surge in the median lot price in Ipswich was driven by a tightening of housing supply in the area.
“The strong price growth in Ipswich is due to limited supply from large projects controlled by a small number of market players,” Ross said.
Ross noted that Ipswich’s constrained supply has shaken up the market dynamics in South-East Queensland and helped the Logan market to regain its status as the most affordable corridor in the region.
Additionally, Oliver Hume’s data showed that South-East Queensland’s median lot price grew by 27 per cent over the last 12 months, which exceeded the Greater Brisbane market’s easing annual price growth of 8.6 per cent.
The report also observed that South-East Queensland’s core growth markets of Brisbane, Ipswich, Logan and Moreton Bay all registered annual price growth of between 16 per cent and 30 per cent.
South-East Queensland sales moderate over March 2025 quarter
Over the March quarter, South-East Queensland land sales held steady with 1,196 transactions, slightly higher than the 1,201 sales of the previous quarter.
Despite the steady transactions, the report noted that the most recent quarter’s sales volume was still down from the average quarterly rate of sales recorded in 2024.
However, on a rolling 12-month basis, the volume of land sales in South-East Queensland registered 6 per cent higher compared to the previous 12-month period.
Across the region’s markets, the geographic composition of sales in South-East Queensland significantly changed over the quarter, with sales falling in Ipswich but contrastingly rising in Logan to rank the latter as number one for land sales in South-East Queensland in the March quarter.
Over the first quarter of 2025, chief economist at Oliver Hume, Matthew Bell, said that sales volumes in South-East Queensland “moved sideways” despite strong price growth, and could be indicative of broader shifts in the region’s market.
“The affordability advantage over Melbourne was completely eroded with the median land price exceeding Melbourne’s for the first time on record and by nearly $30,000,” Hume said.
“This loss of its historically significant affordability advantage over Melbourne is likely to mitigate the impact of rate cuts and ongoing population growth,” he added.
Nevertheless, Bell emphasised that the outlook for future growth in South-East Queensland is still positive due to the positive economic conditions reinforcing the region’s property prospects.
“We still expect resilience in the South-East Queensland market, with interstate and overseas migration levels to remain strong and falling interest rates to support sales rates and median price growth,” Bell concluded.
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