Noosa on Queensland's Sunshine Coast has surpassed the Gold Coast as the frontrunner in the state's property market with the strongest growth, the latest industry report from the Real Estate Institute of Queensland (REIQ) says.

REIQ chief executive officer Antonia Mercorella said Noosa was clearly now the state's "most prestigious" property market.

"The supply there is quite limited — the demand is always strong because it's such a special place," Ms Mercorella said.

Property owner Paul Turner, who is based in Sydney, has seen the value of his investment at Little Cove at Noosa Heads skyrocket over the past five years.

"It was just a matter of time — it's in a good location and it's a demand and supply situation," he said.

The average house price in Noosa for the June 2018 quarter was $695,000 with growth of 6.9 per cent, compared with an average price of $622,000 on the Gold Coast and growth of 4.5 per cent.

The average house price in Noosa for the June 2018 quarter was $695,000. ( Supplied: realestate.com.au )

Brisbane market's growth sustainable, not 'frenzied'

Prices on the Sunshine Coast were also around $22,000 more expensive than the median house price in Brisbane, which also broke sales records.

The average home in the Brisbane area sold for $673,000 — a 2.5 per cent increase on last year.

Logan, Ipswich, Moreton Bay and Redland areas also saw considerable growth, between 2 and 4 per cent over the 12-month period.

The REIQ said Brisbane's steady and sustainable growth had increased buyer confidence.

"That's what makes our [Brisbane] market quite attractive, we haven't seen that frenzied, accelerated growth that's been seen in Sydney and Melbourne," Ms Mercorella said.

"There's optimism there, but it's also not frenzied, so it doesn't provoke that fear of a boom and bust cycle."

The top performing suburb in Brisbane's southside was Holland Park West, where prices grew by 24.5 per cent over the past quarter.

The average home in the Brisbane area sold for $673,000 in the June quarter. ( ABC News: Nic MacBean )

Darren West, a sales agent in the area, attributed the growth to the highly sought-after schools and facilities around Holland Park.

"We get a lot of teachers, police and a lot of nurses," Mr West said.

"We've got a lot of families moving in — we've got beautiful workers' cottages which are primed for renovating.

"It's just such a family area — that's why we get a lot of sales coming through."

Ms Mercorella said the REIQ had really never seen this level of transformation in Brisbane before.

"We know that our population is on the rise, we know that there's lots of really exciting, very large-scale projects that will fundamentally change our city," she said.

Former frontrunner, the Gold Coast, continued performing well for both sales and rentals for the June 2018 quarter.

Brisbane's unit market struggled, with a continued reduction in demand.

The REIQ said the oversupply had triggered an annual price fall of 2.2 per cent to $440,000.