Regional Queensland Property Market Update: Toowoomba & Lockyer Valley Surging Ahead

Queensland’s property market continues to show remarkable resilience and growth. According to the latest Real Estate Institute of Queensland (REIQ) data, statewide median house prices rose by 3.66% in the June 2025 quarter to $850,000, while units climbed 3.41% to $698,000.

Ipswich topped the growth charts with a quarterly increase of 4.19% to a $771,000 median house price, but the real story for many buyers and investors is playing out across our regional centres. Rockhampton, Townsville, Gladstone, and Mackay have all delivered extraordinary annual growth exceeding 23%, outpacing Greater Brisbane’s 8.98%.

Toowoomba: A Market on the Move

Toowoomba continues to attract strong demand, fuelled by affordability relative to Brisbane and its appeal as a lifestyle and employment hub.

Median house price: $762,352 (+9.5% year-on-year)

Median unit price: $533,050 (+26.9% year-on-year)

Rental growth: ~6.3% over the past year for houses

Vacancy rate: 0.5% (one of the lowest in Queensland)

The combination of rising values and ultra-low rental vacancies highlights a market under significant pressure. For investors, rental demand remains robust, while first-home buyers are finding fewer opportunities below $500,000.

Lockyer Valley: Rapidly Closing the Gap

The Lockyer Valley has transformed from a more affordable alternative to Ipswich and Toowoomba into a market showing strong, sustained growth of its own.

Median house price: $709,000 (+9.8% year-on-year)

Median house rent: $550/week

Median unit price: estimated between $350,000–$450,000 (based on recent sales), with yields above 5% in many cases

Annual rental growth: ~6.5% for houses

This region is increasingly popular with buyers being priced out of Brisbane and Ipswich, drawn by larger block sizes, lifestyle benefits, and relative affordability. However, prices here are climbing steadily, with many suburbs experiencing $8,000–$12,000 increases month-on-month.

The Impact of Upcoming First Home Buyer Changes

From 1 October 2025, new government measures will come into effect for first-home buyers in Queensland, including:

Raised stamp duty concession thresholds

Abolition of stamp duty for first-home buyers purchasing new builds

Extension of the $30,000 First Home Owner Grant for new builds

While these initiatives are designed to support affordability, they are also likely to increase demand at the entry level of the market. In markets already experiencing strong price growth, this additional demand may push prices higher yet.

What This Means for Buyers

For both owner-occupiers and investors, timing is critical. Every month of waiting in today’s market could mean paying significantly more for the same property or compromising on location and features.

Supply is lagging well behind demand, with total dwelling completions in Queensland 32% below the government’s National Housing Accord target. Until new stock meaningfully enters the market, conditions will remain tight.

Final Thoughts

The property market in Toowoomba and the Lockyer Valley is moving quickly. With prices climbing by up to $12,000 a month in some areas and the October First Home Buyer changes set to stimulate demand further, buyers need to act decisively and strategically.

At Precision Property Buyers, we are on the ground every day, seeing what the data cannot always capture. We combine this insight with thorough due diligence to help clients Find Their Ideal Property, whether that is a first home, an investment, or a lifestyle acreage.

If you are considering buying in Toowoomba, the Lockyer Valley, or surrounding regions, now is the time to prepare your strategy and move with confidence.