Beachfront markets lead Queensland price growth surge: REIQ

Southeast Queensland’s world-class beaches are driving median price growth for our coastal housing markets, according to the REIQ.

Noosa continues to reign supreme with 9.6 per cent annual growth, followed by Gold Coast with 7.3 per cent annual growth and Sunshine Coast LGA with 6.8 per cent annual growth to median house prices. 

REIQ CEO Antonia Mercorella said the growth surge was helped along by a boost in tourism numbers. 

“Tourism is one of the largest contributors to Queensland’s gross state product (GSP), with almost 8 per cent of GSP coming from tourism.

"This is roughly $25 billion in the year to June 2016, which means when that sector grows it offers employment opportunities and this attracts workers who need somewhere to live,” she said. 

The strong performance of the southeast corner’s coastal markets has helped drive Queensland’s growth over the past 12 months, with more than 58,000 houses sold and an annual median price growth of 2.4 per cent. 

Brisbane LGA: Brisbane LGA enjoyed another year of steady sustainable growth, with the annual median house price increasing 3.1 per cent to a new high of $660,000. 

This market has grown almost 30 per cent over the past five years, demonstrating solid financial returns for property owners. 

The unit market has continued its softening, with the market contracting 2.6 per cent over the past year.

The new annual median house price is $440,750, down from $452,500 a year ago. With more supply expected online over the next 12 months we expect this market will not firm up until mid-2019 at the earliest. 

The million-dollar club welcomed new entrants this quarter, with 18 suburbs claiming a median of $1 million or above, compared with 15 suburbs last quarter. This quarter solidified growth for the sole two-million-dollar club entrant of Teneriffe and its median of $2.6 million. 

1. Ascot: $1.52 million
2. Auchenflower: $1.09 million
3. Balmoral: $1 million
4. Bulimba: $1.26 million
5. Chelmer: $1.08 million
6. Clayfield: $1.15 million
7. Fig Tree Pocket: $1.18 million
8. Hamilton: $1.19 million
9. Hawthorne: $1.2 million
10. Hendra: $1.02 million
11. Highgate Hill: $1.14 million
12. Kalinga: $1 million
13. New Farm: $1.4 million
14. Paddington: $1 million
15. St Lucia: $1.27 million
16. West End: $1.13 million
17. Wilston: $1.15 million

At the current rate of growth, around 32 per cent over the past year, and if market conditions remain static, Teneriffe will be Queensland's first $3 million suburb and this will happen in the next 12 months. This is not a sure thing, but it is a possibility. 

Queensland has the highest proportion of first-home buyers, with these new property seekers making up about 20 per cent of the buying population, according to ABS lending data. 

The unit market in Ipswich is more volatile. The market has grown 5.8 per cent over the past 12 months, to an annual median of $329,000, however suffered a quarterly loss of 20.3 per cent, reflecting slowing demand.