As one of the most investor-heavy states in the country, Queensland’s property market has entered a complex phase following the federal budget, with agents being pushed into a stronger advisory and education role as supply, tax settings, and buyer behaviour shift.
Agents in Queensland could be among the most affected by federal budget reforms, with softer sentiment and shifting conditions making client guidance more critical.
According to Place CEO, Damian Hackett, despite concerns buyers would sit on the sidelines following the proposed tax changes, early post-budget activity showed surprising resilience.
“We weren’t sure how it was going to go following the budget, but there were a lot of people out and about,” Hackett told REB.
He said that open home attendance remained strong, with much of the activity believed to be driven by owner-occupiers rather than investors.
“People are thinking, well, the best tax-effective investment residential now is my principal place of residence.”
He said that many buyers were now reassessing the role property would play in their long-term wealth strategy, particularly as changes around negative gearing and investment incentives begin to reshape sentiment.
“Agents will need to become educators and advisers,” Hackett said.
With many buyers, sellers, and investors still unclear about the full implications of the budget reforms, Hackett said agents would increasingly act as a key source of guidance and reassurance.
“It’s all about providing the right information, explaining the market as a whole, and backing up advice with accurate local data rather than opinion alone.”
As changes occur, he said that agents now need to explain not only current market conditions, but also broader supply and demand trends, tax implications, and buyer behaviour shifts.
For investors, this meant understanding how the reforms could affect holding strategies, rental supply, and future purchasing decisions.
For vendors, it meant resetting price expectations as some markets softened and stock levels increased.
According to Hackett, Queensland’s investor-heavy market could see a major behavioural shift, with its reliance on interstate investors meaning any changes to confidence could significantly reshape market dynamics.
He said that one of the immediate consequences may be fewer investors selling their existing properties.
“The incentive is for them now not to sell.”
Rather than exiting the market, he said that many landlords may choose to hold on to current assets in order to preserve existing negative gearing arrangements and avoid losing grandfathered tax benefits.
He said that investors holding long-term could reduce listing volumes across established housing markets, particularly in Brisbane and South East Queensland suburbs with high investor ownership.
At the same time, he said that investors who continue buying may increasingly favour off-the-plan apartments, townhouses and newly built homes, where tax advantages and incentives remain stronger.
“The incentive for an investor to buy a secondhand property is not there compared to a new build.”
According to Hackett, Queensland’s investor-heavy market could see a major behavioural shift, with its reliance on interstate investors meaning any shift in confidence could materially reshape market dynamics.
Despite the market beginning to soften, Hackett said that Queensland’s underlying housing shortage had not disappeared.
Hackett argued that demand remained extremely strong due to interstate migration and ongoing population growth, while housing construction continued to lag behind.
“I don’t think the demand is the issue; it’s more the supply.”
Although both state and federal governments were introducing incentives designed to stimulate housing construction, he warned that supply constraints would not be solved quickly.
“That doesn’t turn around overnight.”
According to Hackett, the long-term imbalance between supply and demand was expected to continue underpinning pricing across many parts of Queensland, even if activity levels slowed in the short term.
Simultaneously, Hackett said that a softer market could expose inexperienced agents, as they had only worked through the state’s golden years.
He said that over the past few years, many Queensland agents had entered the industry driven by a period of rapid price growth, intense buyer competition and strong investor activity.
“People who have entered the market in the last few years have only seen really strong conditions.”
“It’s about really being able to provide the up-to-date information, and a more balanced market would require a different skill set.
Hackett said that some newer agents may struggle if they have not yet developed the negotiation, communication, and advisory skills needed in softer conditions.
“They might not have developed the skills to advise their clients best in a more balanced market.”
He encouraged younger agents to reinforce their training and urged leaders to provide ongoing education inside agencies.
“We’ve always said we’re a learn-it-all culture, not a know-it-all culture.”
“Agents who can combine strong communication skills with data-driven advice and market experience will be best positioned to build trust and retain clients,” he concluded.
Want to see more stories from trusted news sources?Make Real Estate Business a preferred news source on Google.
