Brisbane Surrounds – Market update

Brisbane Surrounds – Market update

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SALES MARKET

All four of Brisbane’s surrounding council areas posted median house price over the December quarter while also recording greater numbers of sales compared to the previous quarter.

The top major region across Queensland over the period was Moreton Bay which posted median house price growth of 7.7 per cent to $387,750. The region is attractive for first home buyers and investors given its relative affordability and also has the lion’s share of new housing developments across the Brisbane area. Its numbers of preliminary house sales also increased by 8 per cent over the year.

The Ipswich City council area recorded median house price growth of 4.4 per cent to $308,000 over the quarter. Its preliminary numbers of house sales was also up by 4 per cent compared to the historically more voluminous September quarter.

Redland City posted a median house price increase of 3.5 per cent to $455,500 and 8 per cent more preliminary house sales over the quarter. Logan City recorded house growth of 3 per cent to $345,000 with preliminary house sales up more than 10 per cent over the year. Of all four major regions, Redland City now has the lowest days on market at 84 – down from 99 a year before. In Logan and Moreton Bay, the average discounting is now 6 per cent while in Redland City and Ipswich it is 7 per cent.

When it comes to the unit and townhouse market, it was a mixed bag for the Greater Brisbane region but this is probably due to the size of the unit markets in each area.

Logan’s median unit and townhouse price increased 5.7 per cent to $240,000 over the quarter but this was positively impacted by two new developments – one in Beenleigh and one in Browns Plains – which were sold over the period.

Moreton Bay has the largest unit market in Greater Brisbane and recorded 184 preliminary sales over the December quarter. Its median and unit price posted a minimal reduction of 0.3 per cent to $299,000 over the period.

Redland City’s median unit price grew by 3.4 per cent to $351,000 over the quarter but this was based on less than 70 preliminary sales.

The smallest unit market is in Ipswich, which posted just 50 preliminary sales and recorded a median unit price fall of 7.8 per cent to $219,000 over the period due to the varying quality of stock sold.

RENTAL MARKET

For the surrounding Brisbane local government areas, rental markets still remain tight despite a slight easing in vacancy rates. All areas recorded vacancy rates under 2.5 per cent, with Redland City the only area to record an increase of more than one percentage points in its vacancy rate.

Across the Greater Brisbane area, around 40 per cent of REIQ agents surveyed reported an increase in investor activity; however tenant demand remains strong in most areas, keeping vacancy rates at low levels. The increased investor activity was most notable in the Moreton Bay area.

Median weekly rents across the Greater Brisbane area saw small increases for two bedroom units and three bedroom houses, with all regions posting increases of either $5 or $10 since September. Ipswich City continues to post the most affordable median weekly rents across all rental property types.