Queensland residential market back into growth phase: REIQ
The Queensland residential house market is on the move with sales growing and prices firming in many areas, according to the Real Estate Institute of Queensland.
Further evidence of recovery is in reduced vendor discounts in most regions and the rapidly falling days-on-market. For example, in Brisbane, the average vendor discount has fallen over the past year from 7.9% to 6.5%. Likewise, days-on-market has reduced from 90 days to 78.
The REIQ September Quarter Median House Price Report, released yesterday, found that preliminary numbers of house sales across the state grew by 9% over the September quarter. Quarterly sales growth was recorded across south-east Queensland as well as in far north Queensland.
However, the run of good times for mining districts appears to be slowing with quarterly sales volumes falling in Central Queensland and associated regions over the past year.
REIQ CEO Anton Kardash said that, as the Queensland market had been posting promising results for the past year, there was now no doubt that most of the market was well into a growth phase.
“REIQ accredited agents had been waiting a long time – nearly five years in some areas – to finally experience some good times again,” he said.
“Unfortunately, the Queensland market has never been consistent across the board. We often experience phases of recovery and growth in some regions, while others simultaneously experience patches of more stable activity.
“Of course, our mining districts were performing exceptionally while the majority of the state was in the doldrums not so long ago. It’s good to see that we all still get a turn at the good times at some point.”
But Kardash said that, unlike Sydney and Melbourne, which appeared to be experiencing levels of relatively unsustainable price growth, the Queensland market was taking a more measured approach.
“The majority of our regions experienced mostly unchanged median prices over the September quarter, although over the year we are starting to see some healthy median increases,” he said.
“It’s also important to remember that house prices in Queensland still remain slightly below their most recent peak, so we are not talking about significant gains taking place over short timeframes.
“Given the price increases in the southern states, there is no doubt that Queensland remains one of the most affordable places to buy or invest in property. With this in mind, we are likely to see an increase in interstate investors and migrants taking advantage of these excellent opportunities.”
Over the quarter there was an increase in sales for under $350,000 across the state – potentially to investors – which has temporarily impacted some median house prices.
According to the report, the median house price in Brisbane rose 0.6% to $530,000 over the quarter. Over the year ending September, Brisbane’s median house price rose 3.4%. The preliminary numbers of house sales in Brisbane rose 13% over the quarter and were up 18% over the year.
The median house price on the Gold Coast dipped by 0.6% over the quarter but increased 4.8% over the year. Likewise, on the Sunshine Coast, the median house price fell 1.3% over the quarter but grew 2.3% over the year. Both regions had more house sales – up 12% and 10% respectively over the quarter.
The Cairns property market continued its recovery over the September quarter with the numbers of house sales increasing 10%. Over the year, sales numbers rose by 7%. Median house prices dipped 1.8% over the quarter but rose 1.1% over the year.
The Gladstone, Mackay and Townsville markets had fewer house sales over the year ending September. But Mackay posted a 5% increase in activity over the quarter, as well as a steady rise in medians.
The heat in the Gladstone market continues to dissipate with its median house price dropping 8.5% in the quarter to $437,000. More affordable house prices, however, are likely to attract buyers back into the market in 2014.