As Queensland starts to defrost and a new flock of early morning runners attempt to get in shape for summer*, we have now also begun to see the emergence of various housing statistics for the month of June 2013. And if the latest updates to Housing and Lending Finance data (as well as the most recent REIQ house sales data) is any indication, the Queensland property market did anything stay hidden underneath the bed sheets over the most recent June quarter.
The amount of non-First Home Buyer (non-FHB) or owner-occupier and estimated investor dwellings financed fell during the month of June, while the first home buyer segment saw an unexpected increase. June normally represents a cooling off from May anyway, so the non-FHBs and investor activity isn’t a real shock. Though we’ve yet to see any update regarding the uptake of the Great Start Grant, this monthly increase in FHB activity is promising.
For a better perspective on how the Queensland property market is performing however, let’s compare the June quarterly periods of 2012 and 2013. Non-FHB activity continues to sprint ahead as the year rolls on, up 25.4 per cent to 25,395 dwelling financed. After a slow start to the year, property investors are also getting back on track, with activity up 11.6 per cent to an estimated 14,060 dwellings financed in the three months to June 2013.
Sadly the FHB segment is still overshadowed by its former self – down 41.4 per cent from the June quarter 2012 to 2,998 dwellings financed. A quick look at owner-occupiers housing loans by purpose of finance suggests no significant increase in the amount of newly constructed dwellings bought since the Great Start Grant was introduced in October 2012.
Taking these housing finance results into account, it is no surprise then to see the amount of preliminary house sales activity increasing significantly versus the same period last year. The June quarter historically yields the lowest amount of residential sales activity during a given year, however preliminary houses sales for Queensland were up 40 per cent on last year.
Looking at the composition of these preliminary sales, there’s been a definite increase in the proportion of $500,000 to $1 million houses sold, particularly in the Brisbane City market where this price point now represents 50.4 per cent of preliminary house sales. Not surprisingly, results have also shown a 3.0 per cent increase in Brisbane City’s median house price for the 12 months to June 2013 compared to 2012.
Results for other regions and individual suburbs around the State, as well as for units/townhouses and land, can be found in our upcoming June quarter 2013 edition of the new-look Queensland Market Monitor , due out on September 6.
*Speaking of early morning runners, various staff and friends of the REIQ are joining together to take part in this Sunday’s Bridge to Brisbane, raising money for the Institute’s charity partner The Smith Family. If you would like to donate, please head on over to the Team REIQ page.