The Real Estate Industry Association quarterly report said some regional markets were running particularly hot. Bundaberg’s annual growth was above 15 per cent and Toowoomba was up 10 per cent for the 12 months to the end of June.

Fraser Coast houses rose 10.7 per cent and its units were up 17 per cent for the year. Ipswich house prices grew by 11.3 per cent and units by 13.6 per cent.

The median price for a Queensland house was now $650,000 and in Brisbane the median house price was $980,000. The median unit price in Brisbane reached a record of $510,000.

Noosa retained the number one position for house prices with a median of $1.3 million. The Gold Coast was up 3.2 per cent for the year to $960,000, while the Sunshine Coast fell by 0.5 per cent to $940,000, Cairns produced annual growth of 8.6 per cent to $565,000.

Noosa also took the crown for units with a median price of slightly more than $1 million.

Rockhampton prices were up 10 per cent for the year to $365,000, Gladstone 2 per cent to $405,000, Mackay 3 per cent to $440,000 and Townsville 3.9 per cent to $400,000.

REIQ chief executive Antonia Mercorella said the results were surprising and contrary to speculation that the market would go belly-up.

“While these results are somewhat surprising given rising interest rates, Queensland’s market is buoyed by population growth and a lack of listings hitting the market,” she said.

Listings in Queensland were down 18 per cent on the previous year.

“It’s slim pickings for buyers hoping to secure a slice of the Sunshine State and this creates competition and puts upward pressure on prices,” Mercorella said.

“The dust has settled and we’ve returned to a much more stable market with steady growth for owners and more time for buyers and that’s a great market to be in.”

She said the unit market had provided a relative bargain entry point and the gap between its prices and those of houses had never been bigger.