Queensland home buyers retreated from the property market in the June quarter as they waited for the return of stamp duty concessions but house prices held their ground, according to the latest REIQ data.
The REIQ June quarter median house price report shows house prices remaining steady in the face of lower sales activity across the State.
Outside of the southeast, Townsville recorded median house price growth of 4.2 per cent to $375,000 over the June quarter. Townsville’s economy continues to fair well due its mix of industries.
Townsville is in the enviable position of having a number of different industries to underpin its economy.
Therefore, unlike other regional areas it is not reliant on one particular industry, which is why its economy has continued to perform solidly. Also as Townsville is a garrison city, sales activity from defence force personnel continues to provide some added buoyancy to its property market.
REIQ Townsville zone chair Suella O’Donnell said local agents had been reporting increased activity since 1 July.
“It certainly appears that many buyers were holding off buying until the stamp duty concession was reinstated,” she said.
“Some agents have been reporting very strong activity levels over the past six weeks which is great news for our region.”
A solid performer over the June quarter was Currajong which recorded median house price growth of 8.7 per cent to $299,000.
Median house price growth appears to have plateaued in Gladstone for the second consecutive quarter however the region still posted an increase of 14.6 er cent over the year ending June.
Toowoomba posted its second quarter of positive results with its median house price increasing 3.8 per cent to $299,000.
REIQ Toowoomba/Darling Downs zone chair Denis Duffy said buyers had flocked back to the market from 1 July.
“Over the June quarter, we did have some people holding off buying because they were waiting for the return of stamp duty concessions,” he said.
“Since the start of the new financial year we have experienced strong demand, but not just from owner-occupiers who had the most to gain from the educed stamp duty rate.
“There has been increased demand from investors, especially for properties priced between $300,000 and $400,000. Investors are recognising that the market here is very good and you can achieve good rent for your property because vacancy rates are low.”
A solid performer over the quarter was North Toowoomba which posted median house price growth of 8.1 per cent to $300,000.
Ryan Connors is the REIQ research analyst