High property prices and a tight rental market in south-east Queensland are forcing some renters and first-home buyers to move south for cheaper housing in relatively affordable locations, such as Melbourne and Tasmania.
According to the latest data from the PropTrack Home Price Index, capital city prices rose 9.1% annually, marking the fastest pace of growth since 2022.
Property price growth remains unevenly distributed, however, with Brisbane recording double-digit annual growth at 15.9% for the year to February, while Melbourne rose by a meagre 3.4%.
Mikaela Carroll, 28, and her partner, Ryan, have felt the impact of the runaway price growth in south-east Queensland first-hand.
When Covid hit and prices began to climb, the pair left Brisbane and travelled to Bunbury a regional town in WA, before eventually settling in Launceston, where the price of an average home is $688,000. Within eight months, they had bought a house within close commuting distance to both their workplaces.
“We couldn’t imagine this level of liveability if we had stayed in Southeast Queensland,” Ms Carroll said.
“We have a little house on a block with a backyard, and we have been able to get a dog as well.
Launceston in Tasmania has a median house price of $688,000. Picture: realestate.com.au
“If we'd stayed in Brisbane, I don't think we would have been able to get a house with a backyard, or anything convenient to our workplaces, for at least 10 years.”
But as more buyers get priced out of Queensland, property prices in Tasmania appear to be staging a turnaround. Hobart's annual price growth has now cracked the 10% mark for the first time since August 2022. Further north, the Launceston and north east region has seen price growth of 12.2%.
A tale of two cities
Cheaper rental costs in Tasmania— the median rent in Launceston is $550 per week—also enabled the couple to save money for their first home.
“When we were renting at Burleigh Heads (on the Gold Coast), we would go through the open for inspection and then sit down in the car immediately after and submit the application as quickly as possible because they were assessed on a first-in basis,” Ms Carroll said.
Property prices and rents have surged across southeast Queensland. Picture: Getty
“Not having that over our heads anymore is a huge relief because we are no longer at the whim of the volatile rental market.”
According to PropTrack data, it costs an average of $850 and $670 per week respectively to rent in the Southeast Queensland hotspots of the Gold Coast and across greater Brisbane, while Melbourne rents average $575 a week and Hobart is slightly cheaper at $573.
Ms Carroll said several of her friends had relocated from Southeast Queensland to Melbourne for greater affordability, while others are considering moving to the Northern Rivers region of NSW, which offers cheaper housing due to flooding and fire events.
“They're having to consider more volatile housing situations just because that's where they can afford,” she said.
The national median weekly rent reached a record $650 in December 2025. Source: PropTrack
Research from the Regional Australia Institute revealed some 49% of Australians surveyed who are aged between 18 to 29 are willing to leave the city for the regions, with 50% citing cheaper housing as key drivers.
Melbourne becomes one of the most affordable capital cities
Senior Economist at PropTrack, Anne Flaherty, said that while the pace of rent growth has slowed in recent years, “the dollar amount that people are paying nationally is over $10,000 a year more, on average, compared to five years ago”.
It’s not surprising, she said, that faced with exorbitant rents and high property prices, many residents would choose to leave southeast Queensland for cheaper locales down south, even if it means leaving behind friends and family.
“This has been happening for well over a decade in Greater Sydney, in which people move out for cheaper regions in Greater Melbourne or Greater Brisbane,” she said.
Melbourne has become of the most affordable capital cities for both buyers and renters. Picture: Getty
“Melbourne has long been seen as the second most-expensive capital city, and I think that perception is still there, but it’s now one of the most affordable capital cities in the country.”
Ms Flaherty said that over the five years ending December, Melbourne’s home price increased 12.7%, while Brisbane’s growth exceeded 95.8%.
The affordability disparity is driven partly by a greater supply of properties in Melbourne than Brisbane.
“Population growth and migration to places such as Southeast Queensland has far exceeded development activity,” Ms Flaherty said.
PropTrack senior economist Anne Flaherty.
“The fundamentals of Melbourne are good over the long run: it is the second-biggest city in the country it has a diverse economy and strong population growth so over the longer term that will support Melbourne’s property prices.”
First-home buyers circle Melbourne
Chaice Paterson is the founder of first-home buyer service Low Doc Homes, and is similarly bullish on the Melbourne market’s prospects.
He and his team have recently opened an office in Melbourne because of its attractive prospects for first-home buyers.
“Melbourne has strong long-term fundamentals, good affordability relative to Queensland, and a city that's well overdue for a comeback,” Mr Paterson said.
Get your realEstimate™
Track your property's value and unlock insights and data tailored for property owners.
Mr Paterson said Melbourne and Queensland have tended to move in opposite cycles, and “right now we're seeing that play out clearly”.
“Melbourne is a market that's due for its next cycle, while Queensland is running hot,” he said.
“That's almost exactly where Queensland was around seven years ago, before it took off.”
Read more:
'One of the best opportunities around': Why investors are heading back to Melbourne
English (US) · 