One year on from the floods and Cyclone Yasi, the Queensland residential property market has stabilised.
The REIQ December quarter median house price report found property prices in South East Queensland recording mostly steady results, while the strong resources sector is driving demand and price growth in Central Queensland and the Darling Downs. Over the December quarter, the median house price in Brisbane recorded a negligible fall of 0.2 per cent to $499,000 – the lowest fall in our capital city’s house price since September 2010.
Across Queensland, investor and first home buyer activity continues to strengthen with buyers recognising that prices have plateaued in many areas. These improving results show that our state had begun to move on from 2011.
Last year was a very tough one for everyone in Queensland with the series of natural disasters having a drastic impact on our economy as well as on confidence levels overall. With the first anniversary of these events now passed, it certainly appears that Queenslanders are feeling more optimistic about the future and this is starting to have a positive effect on our property market.
While it is too soon for the two interest rate reductions in November and December last year to be reflected in these results, we anticipate more positive news on our property market in the months ahead as these rate cuts flow through to our wider economy. Queensland’s mining regions were the stand-out performers this quarter with Gladstone, Mackay, Rockhampton and Toowoomba all posting median house price growth. Gladstone’s median house price increased 8.6 per cent to $478,000 over the quarter and was up 15.6 per cent over the year ending December.
While demand for property in Queensland’s mining centres is a positive, continual assessments need to be conducted to lessen the impact on residents of these areas who are not employed in the mining sector. Queensland’s tourism regions may have experienced reductions in their median house prices over the December quarter, but local agents are reporting more enquiries and an increase in buyers taking advantage of subdued prices.
The Sunshine Coast appears to be turning a corner with it recording a very small median house price fall of 0.6 per cent this quarter, compared to a drop of 4.4 per cent over the September quarter.
In Cairns, REIQ accredited agencies say that investors are recognising the historically low prices that are currently available as well as a rental market that is starting to have more demand than supply.
By Anton Kardash, CEO, REIQ