RBA’s “bubble” warning doesn’t apply to South East Queensland: Ausbuild

The Reserve Bank of Australia’s warning of a housing bubble doesn’t apply to South East Queensland, according to leading house and land developer Ausbuild.

The Reserve Bank's meeting minutes revealed some concern around house prices and said that they were putting them under “close observation”, but Ausbuild's joint managing director Matt Bell said that South East Queensland’s situation is not a replica of Melbourne and Sydney.

“The housing construction sector is moving at a steady, sustainable pace, with land being released at a rate that is meeting demand in a responsible way,” Bell said.

“Prices are still competitive, and will continue to be so, given the steady and continuous rate of supply by developers in the market.”

The last thing Queensland needs, said Bell, is buyers getting the jitters when they’re just getting confidence to enter the marketplace post-GFC.

“Confidence is everything when people are looking to make what is the most significant purchase of their lifetime,” he said.

It appears observer Terry Ryder agrees with the comments that there isn't a bubble, particularly when you take Sydney out of the equation.

"The statistics suggest that all [the markets] are up by 10%, when in fact if you take Sydney out of the equation it's clear that this isn't the case," Ryder said. He notes that Sydney is playing catch up after many years of stagnancy.

While Ryder says that South East Queensland isn't "immune" to the effects of the market, at present it represents some of the strongest growth opportunities in the country with more growth markets in the area than in any other location in Australia.

He doesn't necessarily recommend the Gold Coast, but says that South East Queensland as a whole includes some of the more dynamic markets in the country.

Buyer's agent Todd Hunter, from Sydney-based wHeregroup, noted that there are many markets within South East Queensland, including areas where houses are undervalued at sub-$400,000.

He said that prices are starting to head northbound, and while Sydney and Melbourne have been booming for two years, South East Queensland is only just starting to heat up.