For first-home buyers in Queensland, the end of 2025 has brought a mix of excitement and uncertainty. Property values have risen sharply, housing supply remains tight and many buyers are weighing up whether building a new home or buying an existing one makes the most sense.

Understanding where the Queensland housing market sits right now, and what is likely to shape conditions in 2026, can help first-home buyers make more confident decisions and avoid common mistakes early in their journey.

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Where the Queensland Housing Market Sits at the End of 2025

Queensland has been one of the strongest performing property markets in Australia throughout 2025, with Brisbane leading the charge. Over the past year, house values have increased by around 15% while unit values have surged more than 26%, according to SQM Research. At the same time, housing supply remains extremely tight, with fewer properties on the market compared to last year and well below historical averages.

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For first-home buyers, this environment can feel overwhelming. Competition is high, prices are moving quickly, and many established homes sell before buyers even have a chance to properly assess their options. In this context, building a new home is becoming an increasingly appealing alternative, particularly when established stock is scarce or outside your budget.

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Why Units Are Leading Growth and What That Means for Buyers

One of the standout trends in 2025 has been the stronger performance of units compared to houses. Units have benefited from lower price points, strong rental demand and increased investor interest as affordability pressures push buyers to look for more accessible options.

For first-home buyers, this trend highlights two important considerations. First, affordability matters more than ever, and compromises on property type or location may be necessary to enter the market. Second, long-term value is increasingly tied to supply levels, infrastructure and liveability rather than just property size.

Buyers considering building should keep these factors in mind when choosing land and designing their home. Location, transport access and future growth corridors can have just as much impact on long-term value as the home itself.

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Government Incentives Supporting First-Home Buyers in Queensland

Government support continues to play an important role for first-home buyers in Queensland. Programs such as the First Home Owner Grant and the First Home Buyer 5 per cent Deposit Guarantee can significantly reduce the upfront costs of buying or building a home.

The First Home Owner Grant provides a one-off payment for eligible buyers purchasing or building a new home, while the Deposit Guarantee allows eligible buyers to enter the market with a smaller deposit and avoid paying lenders mortgage insurance.

While these incentives can be valuable, they also come with eligibility criteria, price caps and conditions that buyers need to fully understand. How these schemes interact with your borrowing capacity, build costs and long-term budget is not always straightforward, particularly for buyers building for the first time.

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Building Versus Buying in a Tight Market

Deciding whether to build a new home or buy an established property is one of the biggest decisions first-home buyers face in Queensland’s current market.

Buying an established home can offer immediate access to a suburb and community, but it often comes with strong competition, limited stock and little flexibility around layout or design. Renovation and maintenance costs can also add up quickly, particularly in older homes.

Building a new home allows buyers to design a space that suits their lifestyle, budget and future plans. In a tight market, this can be an appealing alternative to competing for existing homes. However, building requires careful planning. Site costs such as soil testing, slope and drainage vary across Queensland, and upgrades can quickly push the final price beyond the advertised base cost if they are not considered early.

Building also involves contracts, deposits and progress payments, all regulated under Queensland law. For first-home buyers, this can feel unfamiliar. The Queensland Building and Construction Commission’s contract checklist outlines deposit limits, payment stages, variations and buyer rights and responsibilities, making it a useful reference before and after signing.

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Understanding these differences early helps buyers choose the path that best suits their situation, rather than reacting to pressure in a competitive market. For a deeper comparison of costs, risks and timing, our Build vs Buy guide for first-home buyers in South East Queensland explores these considerations in more detail.

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Suburbs and Regions First-Home Buyers Are Watching

Across South East Queensland, several regions continue to attract strong interest from first-home buyers, driven by affordability, infrastructure investment and long-term growth potential.

Moreton Bay remains a standout for buyers looking to balance value and lifestyle. Suburbs around North Lakes, Mango Hill and Ripley are seeing continued demand thanks to established transport links, schools and shopping precincts, alongside new residential developments offering house and land packages that suit first-home buyer budgets. Ongoing upgrades to the Bruce Highway and rail connections continue to strengthen the area’s appeal for commuters.

Ipswich continues to draw attention as one of South East Queensland’s most affordable growth corridors. Large-scale developments in areas such as Ripley Valley and Springfield are reshaping the region, supported by new schools, health facilities and retail centres. With population growth forecast to remain strong and significant government investment already underway, Ipswich is seen by many first-home buyers as a practical entry point into the market with long-term upside.

The Sunshine Coast remains highly desirable, particularly for buyers drawn to lifestyle and employment growth linked to the health and education sectors. Areas around Caloundra South and Aura continue to attract interest due to planned infrastructure, including transport upgrades and community facilities. However, limited land supply means competition is strong and buyers often need to act quickly when suitable opportunities arise.

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For a closer look at where first-home builders are finding the best opportunities, see our guide to the best suburbs in South East Queensland for first-home builders in 2026.

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Choosing the right suburb is about more than price alone. Access to transport, proximity to employment hubs, planned infrastructure and everyday lifestyle needs all play a role in shaping both liveability and long-term value. For first-home buyers, understanding how a location is expected to grow can be just as important as what it offers today.

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What to Expect as the Market Moves Into 2026

Looking ahead, property values across Queensland are expected to continue rising into 2026, although the pace of growth is likely to slow. Affordability pressures, high value-to-income ratios and elevated interest rates are expected to place natural limits on how quickly prices can increase.

For first-home buyers, this makes planning more important than ever. Understanding your borrowing power, allowing room in your budget for site and upgrade costs and designing a home that can adapt to future lifestyle changes all help protect against financial stress down the track.

Flexible layouts, adequate storage and multi-use spaces are becoming increasingly important as buyers look to build homes that can evolve with them over time.

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A Smarter Way to Navigate Your First Home Journey

Whether buying or building, entering the Queensland property market as a first-home buyer can feel overwhelming. The key is having clear information, realistic expectations and support early in the process.

At Nesta, we help Queensland first-home buyers understand their options, compare builders and navigate the building journey with confidence. With the right guidance and preparation, building or buying your first home does not have to be stressful.

Start your journey with confidence. Talk to a Nesta broker for free today.

Want more tips? Check out our blog and start planning your dream build with Nesta today.