Trends Shaping 2025 – Gold Coast, Queensland, Australia, and Beyond
Gold coast
The Gold Coast property market is poised for continued growth in 2025, building on the strong performance of 2024, which saw home values increase by up to 18%. PropTrack data reveals widespread price rises across the region in the last quarter of 2024, with Surfers Paradise (+3.9%) and Parkwood (+3.1%) leading the charge. Mermaid Beach recorded the most significant annual increase, with house prices jumping by 17%.
This strong demand is reflected in Propertyology’s 2025 outlook, which predicts a 10-13% price boom and a very tight vacancy rate of just 1.1%. This makes the Gold Coast an attractive prospect for both homeowners and investors, with median house prices now at $1.1M and apartments at $760,000.
However, this desirability is further fuelled by a critical land shortage. As reported by The Australian, vacant residential lots are in short supply, with high demand and lengthy approval processes creating a bottleneck. This scarcity has pushed the average price per square meter for vacant land above $1500, a figure compounded by a shortage of available builders.
On the commercial front, the Gold Coast is experiencing a boom, with industrial and logistics vacancy rates at historic lows, driving up prices. Retail is also thriving, thanks to innovative resort-style shopping experiences that are drawing in crowds. The tourism sector has rebounded strongly, with both domestic and international visitors flocking to the coast. These factors combined make the Gold Coast a particularly exciting prospect for investors.
QUEENSLAND
Queensland’s property market is booming, with strong growth evident in both major cities and regional areas. This positive trend is driven by a confluence of factors, including population growth, infrastructure development, and favourable economic conditions. Razor-thin vacancy rates across the state underscore the high demand for homes, making Queensland an attractive destination for both renters and buyers. If there was ever any doubts about just how much location and a view can hike up a property’s price, the record breaking ocean view cottage in Moffat Beach is the perfect example. The hot new record for the coastal town emphasised that sometimes it’s not so much what it is but all about where. The tiny 1970s cottage sold at auction for $6.72M, starting the year off with a bang.
Brisbane’s property markets are thriving, driven by population growth, infrastructure investment, and evolving buyer needs. The commercial sector is tightening, with premium developments like 205 North Quay and 360 Queen Street boosting office supply, while older stock faces refurbishment or conversion. The industrial market remains robust, particularly in logistics hubs along the Logan Motorway and Yatala, and retail is recovering, led by transformative projects like Queens Wharf Brisbane.
Residential development is surging, with inner-city projects such as Queens Wharf Residences and suburban master-planned communities in Ripley Valley and Springfield Lakes addressing affordability and growth.
Sustainability and build-to-rent initiatives are reshaping the market, supported by transport upgrades like the Cross River Rail. With strong demand for premium and affordable housing, Brisbane is poised for continued growth in 2025.
AUSTRALIA
Australia’s property market experienced widespread price growth in 2024, with further increases anticipated in the coming year. Core Logic reported a significant milestone in May, with the national Home Value Index achieving its highest monthly growth since 2021, driven by a 1.2% rise in home values.
While this upward trend continues across the country, regional areas are outpacing capital cities, fuelled by factors like affordability, lifestyle appeal, and the rise of remote work. However, a national housing shortage persists, contributing to the ongoing affordability crisis. Despite this demand, new home approvals are declining, creating a concerning imbalance in the market.
As of July 2024, the national office vacancy rate stood at 14.6%.
Major cities showed a mixed picture, with vacancy rates decreasing in Sydney to 11.6%, Melbourne increased to 18%, Brisbane fell below 10% for the first time in a decade, Gold Coast decreased to 6.2%, Adelaide decreased to 17.5%, Perth increased to 15.5%, and Canberra increased to 9.5%.
BEYOND
The US property market is undergoing a period of adjustment. Residential property, in particular, is cooling down after a period of rapid growth, largely due to rising interest rates. Many areas are experiencing price declines, especially those that saw significant increases during the pandemic.
The commercial sector faces its own challenges, with office vacancy rates soaring due to the rise of remote work. A 2023 report showed the US office vacancy rate at a concerning 18.4%, significantly higher than Australia’s 12.8% and the UK’s 9.5%. By late 2024, this rate had climbed to 19.4%, highlighting the ongoing shift in workplace dynamics. Demand is now focused on premium spaces that cater to modern needs, leaving older, less desirable buildings struggling to attract tenants.
Looking ahead, potential tax cuts and policy changes under the new administration could stimulate investment and development in the US market. However, uncertainty surrounding the 1031 exchange rules and potential restrictions on foreign ownership could also impact investment strategies. While the US might be nearly 15,000 kilometres away, changes in their market can still have ripple effects on Australian shores.
China’s property market faces challenges with high vacancy rates and an oversupply of properties, particularly in major cities where vacancy rates exceed 20%. There’s reports of a substantial surplus of residential property, some estimates suggesting up to 90 million empty units. They are seeing the repercussions of the end of the 2000 to 2020 commodity Supercycle. Over the 20 years, China saw rapid urbanization and industrialisation, driving unprecedented demand for raw materials. Notably, Australia experienced particularly high benefits of this demand for raw materials.
In contrast, Japan’s commercial real estate market is thriving, with office vacancy rates around 3%.
This resurgence is attributed to low interest rates, a booming tourism industry, and a strong post-pandemic recovery. In the first half of 2024, Japan saw record real estate transactions totalling $23.6B, the highest since 2007. This growth is attracting significant foreign investment, including Blackstone’s $2.6B acquisition of the Tokyo Garden Terrace Kioicho, Japan’s largest-ever real estate investment by a foreign entity.
While Japan’s central bank has started to raise interest rates, they remain low compared to neighbouring countries, further stimulating investment. However, with a declining population and reduced domestic demand, Japanese developers are increasingly looking overseas for opportunities. Markets with growing populations, such as Southeast Asia, Australia, and North America, are particularly attractive, offering diversification and potential for strong returns. This strategic shift allows Japanese firms to offset domestic economic stagnation and pursue sustainable growth in the global market.
So to sum things up
We’ve seen small beach cottages break records in Queensland, a surge in demand continuing right across Australia which is only exacerbated by a lack of builders and crowding in the most desirable spots, and shifts in the US, China, and Japan that have ripple effects around the globe. As always one thing is certain: knowledge is key. So, stay informed, embrace the opportunities, and remember – when it comes to real estate, it really is all about location, location, location… and maybe a little bit of luck!