Apartment prices weaken in Brisbane: REIQ

Apartment prices weaken in Brisbane: REIQ
Apartment prices weaken in Brisbane: REIQ

The housing market in Queensland grew moderately in 2016 with Q4 results showing a weaker result for units, according to the REIQ.

The REIQ Queensland Market Monitor: December 2016 quarter report found the Brisbane LGA median house price grew 1.6 percent this quarter, to a new high of $655,000.

The annual median house price grew 4.1 percent over the past 12 months. The unit market performed less well, falling 4 percent this quarter. CoreLogic has Brisbane's unit median price currently at $488,000.

Antonia Mercorella, chief executive officer, REIQ  said this is the consistent, sustainable growth that the Brisbane house market has become known for and it is great that it’s such a solid performer.

"The unit market performed less well, falling 4 per cent this quarter, with supply issues finally gaining traction that many had forecast.  

"However, over the past 12 months the unit market has only fallen 1.1 percent and over the past five years the market is still in positive territory, having grown 11.3 percent.

“These supply issues have, as expected, had a small impact on prices, however, we know that the market is an excellent self-regulator and developers are already scaling back projects scheduled for this year and in 2018," she said.

Ipswich: The Ipswich median house price increased marginally this quarter, by 0.8 percent, to $332,700.

"This market is holding steady. While it has only grown by a slender 0.9 per cent over the past 12 months it is about 5.5 per cent higher than five years ago," she said.

"The Ipswich unit market is much more volatile than the house market and this is partially due to the stuttering nature of supply coming onto the market.

"The median unit price fell 10.6 percent this quarter, to $272,750, however, over the past five years the market is still showing modest growth of 7.1 percent.    

"Logan and Moreton Bay: Logan and Moreton Bay houses were the strongest growth markets in the Greater Brisbane region this quarter, with Logan’s median house price growing 2.4 percent to $384,500 and Moreton Bay’s median house price growing 1.8 percent to $422,250.  

"Logan’s unit market is the most affordable in Greater Brisbane and fell 1 percent in the December quarter, to $250,500.

"Moreton Bay’s unit market fell 2.9 percent this quarter, however, with a median price of $330,000 it remains the second-most expensive unit market in Greater Brisbane after Redland.

"Redland: The Redland house market is the cream of the Greater Brisbane crop.

"With a quarterly median house price of $510,000, even though this market showed zero growth over the quarter, it remains the most expensive house market after Brisbane LGA.

"The Redland annual median house price grew 4 percent over the year, which is similar to Brisbane LGA levels, and has grown almost 15 percent (14.8 percent) over five years.

"Similarly, the unit market is also the most expensive in Greater Brisbane.

"Even though the quarterly price fell a startling 10.2 percent in just one quarter, the market is 7 percent higher than it was five years ago.

"It would be fair to say this is a fragile market at the moment.

Tags: 
Queensland Property market

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