Momentum is continuing to build in the Queensland market with sales activity and house prices strengthening. The REIQ June quarter median house price report, found the numbers of sales have increased significantly compared to the previous quarter and compared to last year. The preliminary numbers of house sales across Queensland increased 22 per cent in the June quarter compared to the March quarter and the improvement in the market is even more pronounced when you contrast it to the same period last year with sales numbers up some 40 per cent compared to the June quarter in 2012.
It is the fourth consecutive quarter of positive news. The September quarter last year was a particularly strong one for the Queensland market and that momentum has been sustained throughout the following three quarters of sales activity.
The June quarter historically yields the lowest numbers of residential sales activity during the year but this data shows house sales are notably much higher compared to the same three months in 2012. The September quarter and the upcoming spring selling season is typically a great period for the Queensland real estate market and with such good price and sales results for the June quarter, as well as historically low interest rates, it’s shaping up to be another strong period as our market continues to build momentum.
Over the June quarter, REIQ data shows the median house price in Brisbane increased 1.6 per cent to $527,250 and increased 3 per cent over the year ending June. The numbers of house sales in Brisbane also increased significantly compared to the previous quarter and last year – up 32 per cent and 44 per cent respectively. The median house prices in Logan City, Moreton Bay and Redland City all also increased over the June quarter.
Quarterly median house prices can fluctuate depending on the types of properties that are selling over that three-month period and this latest REIQ data does show some median price variations.
Over the year ending June, however, the majority of regions posted positive median results which provide a better benchmark for price movements than quarterly data-sets.
Toowoomba posted yearly median house price growth of 4.5 per cent, the Gold Coast increased by 3.1 per cent, and the Sunshine Coast median price grew by 2.3 per cent. No doubt the influence of historically low interest rates and increased perceptions of housing affordability have seen more people move off the sidelines and back into the property market of late.
REIQ estimates of Queensland investor activity also shows that the numbers of investment dwellings financed is tracking at about the historical average. No doubt, investors have recognised the strong rental market, including low vacancy rates, and are taking the plunge while first home buyers remain relatively absent.
The numbers of first home buyers in Queensland remain well below historical averages at just 11 per cent of dwellings financed in June – a decrease of 35 per cent compared to June last year.