Gold Coast units still struggling, Noosa Heads still a lemon: the Queensland quarterly wrap

Brisbane's year of recovery and the ongoing struggle of the Gold Coast unit market are standout features of the latest quarterly Market Monitor from the Real Estate Institute of Queensland.

Also noteworthy are the solid 2014 performances of regional cities Toowoomba, Cairns and the Sunshine Coast.

Despite the general uplift in market activity on the Gold Coast, the unit market is still struggling to recover from the oversupply years in terms of prices.

The Gold Coast's median unit price up 4.4% in annual terms, but still 2% below the price levels of five years earlier, according to Market Monitor.

Specific markets have yet to move into positive territory on prices. The median unit price for Surfers Paradise is 4.2% lower than a year ago and it remains 6.3% below the level of five years ago.

Broadbeach has dropped 1.7% in 12 months and remains 3.8% lower than in 2009. Main Beach has shown a 0.9% annual rise, but is still 6.7% below the price levels of five years ago.

It's a more positive story in the housing market. Most housing suburbs have recorded annual growth in median prices, double-digit growth in a few cases – and most, though not all, now have price levels above those of five years earlier.

This tallies with the trend we've notice with sales levels. There's been a steady rise in sales activity in many of inland housing market on the Gold Coast over the past 12-18 months. Prices have reacted more recently.

Another Queensland icon Noosa continues to struggle. The unit market in the Noosa LGA has dropped 1.3% in 12 months and price levels remain 7% lower than in 2009.

The suburb of Noosa Heads is still a basket case, despite the rhetoric of local agents. The median unit price dropped 12% in the past 12 months and is 29% lower than five years earlier.

This is why we refer to Noosa Heads as the biggest lemon in Australian real estate. How did this place ever get its lofty reputation with investors?

Our previous comments about the need for caution in the Brisbane inner-city unit market appear to be reflected in price data in Market Monitor. The median apartment price for the Brisbane CBD fell 10.1% in the September Quarter. Others to record quarterly decline were Kangaroo Point (down 8%), Woolloongabba (2.5%), West End (13%) and Fortitude Valley (7%).

The result for the wider Brisbane City local government area was better, with a 0.6% quarterly rise and a 5% annual rise in the median unit price.

Houses generally are doing much better. The median house price for the Brisbane City Council area rose 8.7% in 12 months, including a 1% rise in the September Quarter.

Many of the better individual performers - suburbs that out-performed the city average – are in the northside areas of Brisbane City, including Chermside (up 13%), Kedron (up 15%), Sandgate (up 12%) and Stafford (up 15%).

The more distant reaches of the Brisbane metropolitan area are showing some life, with annual growth in median house prices in Logan City (up 4.5%), Moreton Bay (up 4%) and Ipswich City (up 3.2%). I'm expecting bigger numbers from these areas in 2015.

Toowoomba's recent solid performance is reflected in the figures. The median house price rose 1% in the quarter and 7.2% over 12 months. Price levels are now 24% higher than five years ago. Units are up 8.5% in annual terms, including a 2.5% rise in the September Quarter.

The recovery on the Sunshine Coast is also evident. The median house price rose 1.2% in the quarter and is up 6.3% in annual terms. Buderim, always the most popular housing market, has risen 7% in the past 12 months.

Cairns' revival is apparent, with house prices up 6.2% and units up 7.5%. Other places showing some spark after several poor years include the Fraser Coast, flood-affected Bundaberg and the Whitsundays, including Bowen. Townsville and Rockhampton remain sluggish.

Gladstone dropped a further 4% in the September Quarter and is 8% down on a year earlier. Mackay has taken a big hit on rentals but prices are down only moderately (3.5% in annual terms).

Isaac Shire, which includes boom-bust icon Moranbah, is down 38% in annual terms, while Emerald is down 15%.

Terry Ryder is the founder of hotspotting.com.au. You can email him or contact him on Twitter.