The number of suburbs in Queensland with median house values below $500,000 has dramatically decreased, now standing at just 118. This figure marks a significant decline from 510 suburbs five years ago, reflecting a nearly 77 percent reduction in affordable housing options, according to an analysis by News Corp. With a total of 1,008 house suburbs in the state, the current statistics reveal a growing disparity in housing affordability.
In stark contrast, the market has seen a surge in higher-priced properties. Currently, 387 suburbs have median house prices exceeding $1 million, and a staggering 41 suburbs now boast prices above $2 million, with eight suburbs exceeding $3 million. The REA Market Trends report highlighted that in 2020, only 62 suburbs had median values exceeding $1 million.
Price Increases Impacting Homebuyers
The final PropTrack Home Price Index for this year indicated that Brisbane’s median house price surged by 13.68 percent, translating to an increase of $136,300, bringing the total to $1.15 million. This growth outpaces Melbourne’s rate, showcasing the rapid escalation of property values in Queensland. The combined median house value across regional Queensland also rose by 12.52 percent or $94,300 over the past year.
Predictions indicate that the number of suburbs with prices below $500,000 may dwindle even further in 2026. Anne Flaherty, a senior economist at REA Group, stated that the volume of homes selling for less than this threshold has sharply declined. “This number is expected to drop even further in 2026 with prices predicted to continue rising across the state,” Flaherty said. She noted that some regions have experienced home values doubling within the last five years due to factors such as high interstate migration and low interest rates during the pandemic.
Regional Disparities in Affordability
Among the few remaining suburbs with median house values under $500,000, only three are located in the Greater Brisbane area: Russell Island at $445,000, Lamb Island at $457,500, and Macleay Island at $495,000. All three have experienced price increases exceeding 111.9 percent over the past five years, with Lamb Island alone seeing a growth of 28.7 percent in the last year.
The Sunshine Coast has no suburbs left under the $500,000 mark, and only two remain on the Gold Coast: South Stradbroke Island, priced at $235,000, and Stapylton at $420,000. The majority of properties on South Stradbroke Island are located within the now-closed Couran Cove Resort, which has faced severe service disruptions due to ongoing legal disputes.
In the Cairns region, 18 suburbs still list at or below the $500,000 threshold, with prices ranging from $281,000 in Mourilyan to $500,000 in Innisfail Estate. However, no suburbs in Cairns itself remain under this price cap. The Townsville area currently has 12 suburbs falling within this price range.
The Real Estate Buyers Agents Association of Australia representative in Queensland, Melinda Granzien, remarked on the resilience of the Sunshine State’s property market, noting strong buyer activity and limited supply. “There has been a significant rise in demand for townhouses and units, as buyers adjust expectations to align with current borrowing capacity,” Granzien stated. She anticipates that while affordability issues will persist, Queensland’s market is positioned for steady conditions moving forward.
As 2026 approaches, Flaherty warned of ongoing price increases, particularly in southeast Queensland. “Without faster planning, more land releases, and a step-up in construction, affordability will continue to worsen,” she explained. Recent findings from Canstar reveal that housing costs remain the top concern for Australians, a sentiment echoed for four consecutive years.
Data insights director Sally Tindall emphasized that while interest rate cuts have provided some relief, they are insufficient to counteract years of soaring mortgage costs. Additionally, over one-quarter of property owners are contemplating selling within the next two years, often due to unsustainable repayment burdens.
The annual PropTrack Housing Affordability report confirms that housing affordability remains near its worst levels on record, despite slight improvements nationally this year. “Meaningful price relief in Queensland is unlikely in 2026,” Flaherty concluded, emphasizing that robust demand coupled with limited new housing supply will continue to drive property prices upward.
