The Queensland property market recorded mixed performance throughout H2 2025, with divergent trends across sectors.
Industrial markets rebounded, supported by strong occupier demand and modest yield compression, while retail benefitted from improved liquidity, strong leasing spreads and low vacancy. Hotels experienced stable conditions, with upward pressure on room rates amid constrained supply. During 2025, improved liquidity led to a wave of Shopping Centre transactions which has paved the way for continued performance of the sector in 2026.
Office markets continued to strengthen particularly across the CBD, even with add supply leading to slight increase in vacancy. Alternative sectors such as healthcare continued to attract investor interest, underpinned by strong fundamentals and defensive income characteristics.
The residential sector remained a key pillar, with strong population growth, low vacancy and constrained supply supporting price growth, although development activity was hindered by feasibility challenges, elevated construction costs and labour shortages.
There is a degree of market uncertainty across all markets in early 2026 driven by geopolitical tensions in the Middle East, and ongoing trade policy adjustments. This environment has contributed to heightened volatility across equity markets and, notably, US Treasury yields. Oil prices are currently rising with impacts to cost of living. Continuing geopolitical instability may place upward pressure on inflation. Early evidence of tariff related inflationary pressure has been reported in the US and is expected to continue during 2026 as businesses pass on higher input and substitution costs. Australia’s economy continues to be influenced by broader economic conditions, contributing to a cautious domestic market.
Looking to the remainder of 2026, rising interest rates and global uncertainty are expected to temper demand and transaction volumes. However, capital will remain focused on prime and supply-constrained sectors, with market conditions gradually moving toward a more balanced position.
Our experts across valuation sectors share their analysis and insights in our latest Queensland Market Snapshot covering the second half of 2025, as well as what to look out for during the remainder of 2026.
Click the link below to read the full Snapshot.
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