Greater Brisbane market update

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Sales activity increased within the surrounding council areas of Brisbane for the June quarter, although this appears to have not translated into any significant median price growth for the individual areas. A closer look at preliminary sales results however suggest that overall the proportion of sales within the $500,000 to $1 million bracket were higher than recorded for the same period last year.

Ipswich’s median house price fell 4.7 per cent over the quarter to $285,000. The region did record a more significant decrease in its unit and townhouse median price, however because these dwelling types account for a relatively low amount of sales, large variations are to be expected.

The median house price of Logan City increased by 0.3 per cent to $327,000. Rochedale South was a popular suburb to purchase a home in during the June quarter and recorded a median price increase of 6.6 per cent to $421,000. A large fall in the region’s unit and townhouse median over the same period can be attributed to the increased numbers of sales of new low-cost unit developments in the Beenleigh and Woodridge areas.

In the Moreton Bay region, the median house price was unchanged over the June quarter at $375,000. Preliminary sales results suggest that the number of homes sold in the June quarter had improved by around 50 per cent compared to the same period last year. Deception Bay was a standard performer with high sales and a median price increase of 6.0 per cent to $293,500.

Redland City’s median increased by 1.1 per cent to $450,000. Wellington Point saw good sales activity and median price growth of 9.8 per cent to $562,500 over the quarter. One of the older suburbs in the region, Wellington Point, features access to many recreational amenities that include boating ramps and picnic parks that overlook the Bay areas.

All rental markets around the Greater Brisbane region recorded tight vacancy levels, with demand increasing further in some areas. Unsurprisingly most markets also saw slight increases in median weekly rents.

Ipswich City’s vacancy rate increased from 2.1 for March to 2.6 per cent as at the end of June. Survey responses indicated that on average it was taking around two weeks to lease properties, however one agent noted that some NRAS residences available were affecting the vacancy lengths within certain price brackets. Over the June quarter, the median rent for three and four bedroom houses within the area remained unchanged at $290 and $345 per week respectively, compared to March.

The vacancy rate for Logan City dropped to 1.5 per cent, representing a significant fall from 3.0 per cent recorded one year ago. Thankfully survey respondents noted an increase in investors over the last two months, in particular from Sydney and Melbourne buying into the lower end of the market. Latest median rents show that both two bedroom flat and three bedroom houses remained unchanged at $250 and $330 per week, compared to the June quarter 2012.

Vacancy levels decreased in the Moreton Bay region, now at 1.9 per cent, due to fall in vacant rental stock across all areas. According to agents, the Caboolture rental market is very busy with enquiries however the quality of tenants is poor. Meanwhile around the Redcliffe area, there has been consistent rental market activity with April and May proving to be strong letting months.

Seeing improvement in vacancy levels, the Redland City region slightly increased to 1.5 per cent overall for June. On the mainland, vacancy rates edged higher to 1.1 per cent while around the Bay Islands this figure rose to 4.5 per cent. Average vacancy length is around two weeks with minimal investor activity. For the region as a whole, the median rent for a three bedroom house was recorded at $380 per week, representing a $15 increase from the previous quarter.


Brought to you by the REIQ’s Queensland Market Monitor