Many media headlines continue to forecast decline in Australian property prices as higher interest rates and 2026 Budget changes place pressure on investors.
However, savvy property investors understand that Australia’s property market is much more complex. Property prices move differently across states, cities, and even suburbs, each influenced by its own economic drivers, demographics, housing supply, and rental demand.
While some locations may experience slower price growth or even price declines, others with strong underlying fundamentals are expected to remain resilient and continue performing strongly.
For example, Sydney and Melbourne are expected to record declines, while Brisbane and wider SEQ are expected to continue benefiting from price growth. According to Nerida Conisbee, chief economist of Ray White, this is largely due to SEQ’s strong population growth, which continue to outpace new housing supply.
This means that even with higher interest rate and budget changes, areas with strong population growth, housing shortages, affordability advantages, and strong rental demand may remain highly attractive to both renters and investors.
Ipswich could be a prime example of a market where strong fundamentals continue to create attractive opportunities despite broader economic headwinds.
The Impact of Rising Interest Rates
Higher interest rates increase borrowing costs, reduce borrowing capacity, and often make buyers more cautious. As a result, they often delay buying decisions, which can reduce demand in certain markets.
However, buyer demand does not decline evenly across all locations. Locations offering affordability, employment opportunities, job accessibility, lifestyle appeal, and access to infrastructure often remain resilient because these are the areas that people would always want to live in.
Ipswich may continue to benefit from these fundamentals as it becomes Queensland’s fastest growing regional city. 7News reports that in 2025 alone, the city welcomed more than 10,000 new residents. As housing affordability deteriorates across Brisbane, increasing numbers of residents are relocating to Ipswich in search of more affordable accommodation while maintaining access to major employment hubs.
The Impact of Affordability Issues
One of the most significant trends influencing South East Queensland’s housing market is affordability.
As rents and property prices rise throughout Brisbane, many renters and first-time home buyers are being priced out of inner-city and middle-ring suburbs. They are moving into neighbouring and more affordable growth corridors.
Ipswich has become one of the primary beneficiaries of this migration trend.
In Cotality’s Quarterly Rental Review for Q1 2026, several Ipswich suburbs ranked among the 30 most affordable locations to rent within commuting distance of Brisbane. These included Raceview, Goodna, Brassall, and Redbank Plains.
Aside from affordability, these suburbs are also strong population growth. The latest Estimated Resident Population (ERP) Report from the Australian Bureau of Statistics show considerable population growth in many Ipswich suburbs.
Recognising these trends, the HYPC has recently secured development sites and/or completed rooming house projects in these high-demand suburbs in Ipswich, positioning investors to benefit from this long-term demographic shift.
Housing Supply and Demand Imbalance
Australia’s ongoing housing shortage continues to place pressure on rental markets.
This imbalance is particularly evident throughout Ipswich, where vacancy rates have remained tight in the recent years, less than 1% across Ipswich according to SQM Research.
For renters facing affordability challenges, rooming houses provide a practical solution through quality accommodation at a lower weekly cost compared to traditional rental homes or units.
Meanwhile, for investors, rooming houses generate multiple income streams, create stronger cash flow, and improve portfolio resilience against market fluctuations. In many Ipswich locations, rooming houses can generate returns of 8%+ per annum, significantly outperforming traditional residential investments with 3% to 5% returns.
Why Ipswich May Continue to Attract Investors
Ipswich’s strong fundamentals are already reflected in property values. According to PropTrack’s April 2026 Home Price Index, Ipswich is among the highest growth regions with 21.5% growth from April 2025 to April 2026, the highest in regional Queensland. This growth has been supported by strong population inflows, affordability relative to Brisbane, and persistent housing undersupply.
While broader market conditions may create challenges for some property markets, Ipswich continues to demonstrate the key fundamentals driving long-term housing demand and investment performance. Strong population growth, relative affordability, ongoing infrastructure investment, tight rental supply, and persistent housing shortages continue to support both property values and rental demand. For rooming house investors, these conditions create a compelling opportunity to provide affordable accommodation solutions while benefiting from strong cash flow and occupancy rates.
As housing affordability pressures intensify across South East Queensland, well-located rooming houses in growth corridors like Ipswich may remain well positioned to thrive regardless of wider market fluctuations.
Looking for a Rooming House Investment Opportunity?
At the High Yield Property Club, we work with investors who want balance strong occupancy and income potential with high-quality affordable housing. If you’re ready to explore how this strategy can fit into your investment goals, contact us to learn more about available opportunities.
Contact us today for available opportunities (land-and-build packages and completed build) in Brisbane and Ipswich.