Housing prices in QLD vs NSW

Rates and Fees verified correct on May 1st, 2017

Both NSW and QLD have experienced growth in property prices in recent years, but it's clear that NSW’s higher than average property prices have contributed to low levels of FHB activity


While we wait to cheer on our respective states in the upcoming State of Origin, we’ve compared the housing prices of NSW and QLD to better understand how property prices influence first home buyer activity in each state.

A recent study by Mortgage House (2015) found that NSW has the lowest percentage of first home buyer activity compared to any other state in Australia. With first home buyers accounting for only 3.85% of overall loans in February 2015, these low levels of first home buyer activity can be attributed to the fact that Sydney features the highest national median dwelling price of $760 000.

On the flip side, QLD has reported strong first home buyer activity with a 17% first home buyer participation rate. In contrast to Sydney, Brisbane hosts a much lower median dwelling price of $452 000.

ALSO READ: Which state is better to buy your first home in?

Property Prices: Blues VS Maroons




Median house prices in Sydney have increased from 7% in 2012-2013 to 17% in 2013-2014, and this growth is forecast to continue throughout 2015.  As a result, housing affordability has deteriorated as owner occupied demand has plateaued.

Industry experts expect that Sydney’s median house price will peak at $915 000 by June 2016. However, as variable interest rates are likely to rise to 6.8% by 2016, housing affordability within Sydney will weaken considerably.

Moreover with the tightening of monetary policy, the rate of price growth for Sydney housing is expected to slow down in the near future, as evidenced by the graph below. Rising interest rates may dampen first home buyer activity as mortgage repayments become more expensive.

Regional New South Wales

Price growth of housing in regional areas of NSW such as Newcastle and Wollongong have been more stable.

The growth of house prices in Newcastle increased by 8% in 2013-2014 while the price growth of property in Wollongong was 10% during this time.

However, housing in these areas has become more affordable relative to Sydney, with the median Newcastle house price being 52% of the Sydney median price in June 2014.




Brisbane has experienced 5.6% growth in median house prices during 2013-2014, with housing affordability for Brisbane residents at its best level since 2003. With increased demand in recent years, the price growth of housing is forecast to strengthen for the remainder of 2015.

Industry professionals forecast that Brisbane property prices will increase by 17% over 2014-2015 and 8% over 2015-2016.

It is predicted that Brisbane’s median house price will reach $560 000 by June 2017; a 17% increase from June 2014, as represented below.

Regional Queensland

Regional areas of Queensland including the Gold Coast and Sunshine Coast have experienced relatively stable growth in housing prices in recent years.

Median house growth in the Gold Coast witnessed 11% in 2013-2014 and is forecast to grow by 7% in 2014-2015.

Whereas the Sunshine Coast experienced an 8% rise in the median house price in 2013-2014, with property prices expected to increase by 6% for 2014-2015.

Compared to Brisbane, population growth in both the Gold Coast and Sunshine Coast is influenced by interstate migration, which rises during times of soaring house prices, as FHBs deviate towards these regional areas.

It is clear that both NSW and QLD have seen significant rises in the price of property in recent years. While median property prices in Sydney have increased by 7% in 2012-2013 to 17% in 2013-2014, Brisbane has also recorded strong growth of 5.6% in 2013-2014 to 17% in 2014-2015.

However, as the Reserve Bank is expected to increase the cash rate early next year, this may have a drastic impact on the growth of property prices, the value property, as well as first home buyers’ ability to service their loans in each state.

Belinda Punshon

Belinda is a journalist here at finder.com.au. Specialising in the home loans and property sections, she is passionate about helping Australians improve their financial wellbeing.

Was this content helpful to you? No  Yes

Related Posts

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)

A fixed rate package loan with flexible repayments options. NAB Rewards Points offer available, terms and conditions apply.

IMB Budget Home Loan - LVR <=90% (Owner Occupier)

A competitive budget rate without any unwanted bells and whistles.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question