Queensland’s Property Landscape Is Changing. Here’s How It Affects You

If you're buying or selling property in Queensland right now, you've probably been following the news closely about interest rates and transfer duty changes. Let's break down what's really happening and how it might affect you, whether you're looking to buy your dream home or sell your current property.

Interest Rates: Where Are We Now?

Remember those historically low interest rates we enjoyed not too long ago? Well, times have changed.

The Reserve Bank of Australia (RBA) cash rate is currently 3.85%. This comes after a RBA Board meeting on 20 May 2025, where the official interest rate was cut by 0.25%.

The Reserve Bank has been on quite a journey with interest rates, and we've now entered what appears to be a stabilisation period after those consecutive increases that made headlines.

What does this mean in real terms? If you're shopping for a home loan today, you're looking at standard variable rates typically between 5.75% and 6.5% from most major lenders. That's a significant jump from what we saw a couple of years ago.

For buyers, this translates to a different borrowing landscape. That property price range you were considering? You might need to recalculate what's affordable now, and what is sustainable moving forward. Your borrowing capacity has likely changed.

For sellers, understanding this shift is crucial. Potential buyers walking through your open home are working with different budget constraints than they would have previously. This might affect your pricing strategy and expected timeframes for selling.

Queensland's Transfer Duty Changes: Some Good News

Now, let's talk about those transfer (stamp) duty changes. The Queensland Government has made some adjustments that could put a smile on your face if you're a buyer.

If You're a First Home Buyer

Great news! The exemption threshold has been increased, meaning if you're buying your first home valued up to $700,000, you could be completely exempt from transfer duty. That's a significant saving that might just put that dream home within reach despite the higher interest rates.

If you're purchasing a new home, recent changes to transfer duty from 1 May 2025, means that first-time buyers who purchase a newly built home or vacant land to build their first home will no longer have to pay any transfer duty. For more information about the strict eligibility criteria, check out our recent article.

If You're Buying in Regional Queensland

Are you considering a sea change or tree change? Some regional areas now have targeted concessions designed to encourage property purchases outside major urban areas. This could make a significant difference to your total purchase cost if you're looking at properties in these areas.

Thinking of Upsizing or Downsizing

For those moving to their next home, the adjusted home concession thresholds could mean lower transfer duty than you might have expected. It's worth calculating exactly what these changes mean for your specific situation.

What Does This Mean For Sellers?

If you're planning to sell your Queensland property, these changes affect your potential buyer pool:

Understanding Your Buyer's Position

With interest rates higher but transfer duty concessions improved, different buyers will be affected differently. First home buyers might have renewed enthusiasm thanks to duty savings, while investors might be more cautious due to higher financing costs.

Pricing Strategy Matters More Than Ever

In this adjusted market, strategic pricing is crucial. Being realistic about how these financial factors affect what buyers can afford will help you set expectations and potentially achieve a faster sale. We recommend engaging a reputable and experienced real estate to ensure the best approach for your type of property and area is being used.

Marketing to the Right Audience

Highlighting the transfer duty benefits that apply to your property could attract more interest. For example, if your property is within the first home buyer price range, making this clear in your marketing can draw attention from this motivated buyer segment.

Practical Steps for Navigating These Changes

For Buyers

• Reassess your budget and consider current interest rates and how they affect your borrowing capacity.

• Calculate your potential transfer duty savings based on your buyer category and property location.

• Consider regional opportunities where both property prices and transfer duty concessions might work in your favour.

• Get finance pre-approval before house hunting to understand exactly what you can afford in this new environment.

• Factor in potential future interest rate movements when assessing affordability.

For Sellers

• Understand how your property aligns with transfer duty concessions to identify your most likely buyer segments.

• Adjust your price expectations to reflect the current interest rate reality.

• Highlight applicable duty benefits in your property marketing.

• Consider timing and understand seasonal factors alongside these financial changes (e.g. end of financial year, school holidays).

• Be prepared for more negotiation as buyers work within new financial constraints.

We're Here to Guide You

Navigating these changes can feel overwhelming, but you don't have to figure it all out alone. Every property situation is unique, and the legal implications of these changes can vary significantly depending on your specific circumstances.

As a seller, engaging a real estate agent when you are considering selling your property is an excellent way to gauge the broader market, how realistic your goals are, and strategies to implement to ensure the best possible result.

Whether you're buying your first home, upgrading to accommodate a growing family, downsizing for retirement, or building an investment portfolio, getting proper legal advice early can help you make informed decisions and potentially save significant money in the process.

Our team stays on top of these changes so you don't have to, translating complex legal and financial developments into practical advice for your property journey. Don't hesitate to contact us if you have any questions about our affordable fixed fee conveyancing, and how our friendly team can help you moving forward.

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Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.

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