The REIQ’s March quarter Queensland Market Monitor found that against a backdrop of cooling southern markets and falling listings volumes, Brisbane house sales demonstrated “admirable” resilience, buoyed by steady population growth driving demand and underpinned by good economic fundamentals.
REIQ media and communications manager Felicity Moore said that anyone thinking of selling was going to find willing buyers in good supply.
“In this market, we could potentially see a rise in off-market sales as eager buyers pressure sales agents to see property before it hits the market,” the manager said.
The unit market eased over the 12 months to March 2018, losing 1.8 per cent off the annual median price of $442,000.
Ms Moore said that the unit market was at the tail end of an unprecedented level of supply. Rising demand would undoubtedly absorb excess stock, and the only question remaining was just how long that would take.
“Queensland has become the number-one destination for internal migration, taking over from Victoria in the latest ABS Census data, and our overseas migration is at its highest level in years, which means demand for accommodation will continue,” Ms Moore said.
The rental market is operating in the healthy range, with vacancies at 3.1 per cent for the March quarter and rising demand levels easily absorbed almost 3,200 new rental properties hitting the rental pool this quarter.
The Ipswich house market grew by 3.0 per cent to a new annual median house price of $340,000. March was a quiet quarter for this market, falling by 1.5 per cent, but over the year, it performed well.
The growth in the house market was offset by falls in the unit market, contracting by 3.0 per cent over the 12 months to March 2018 to an annual median unit price of $319,900.
The Logan house market delivered among the strongest performances for all markets in the March report, adding 4.0 per cent to the annual median house price to $395,000.
The unit market was one of the few markets to grow, adding 0.7 per cent to an annual median unit price of $271,000. However, over the past five years, the unit market has fallen by 7.5 per cent.
The Moreton Bay annual median house price grew a steady 2.4 per cent over the 12 months to March to deliver a median house price of $435,000. This growth is the smallest in Greater Brisbane.
The unit market felt the pain of the combined factors of strong supply and the affordability of houses, with a 3.8 per cent contraction in the annual median unit price to $346,250, down from $359,900 this time last year.
Redland LGA delivered “rock star” growth of 3.9 per cent for the year to a median house price of $530,000. The heavy lifting was done in the suburbs of Birkdale and Cleveland, which delivered 6.3 per cent and 6.7 per cent growth, respectively. The lifestyle and affordability options in this region are proving very popular with buyers.
Similar to the house market, the Redland unit market delivered stellar growth over the 12 months to March 2018, adding 3.4 per cent growth to a new median unit price of $409,500. This was by far the strongest unit growth in all of Greater Brisbane.
The Gold Coast has taken the gold medal for annual median house price growth again, adding 6.0 per cent growth to a median house price of $620,000, the highest growth in the state.
The unit market added 1.9 per cent to deliver a median unit price of $428,000 for the year.
The Toowoomba market has been a consistently steady performer, delivering 1.1 per cent growth for the year to March 2018 to a median house price of $355,000.
The unit market has defied regional trends throughout most of 2016 and 2017; however, gravity is now catching up and this market contracted 2.9 per cent to $300,000. The market remains 17.6 per cent larger than it was five years ago.
The house market of the Sunshine Coast Statistical Division (SD), incorporating the Sunshine Coast LGA and Noosa Shire, has delivered moderate and sustainable growth for the quarter, the past year and the past five years.
A typical house in the Sunshine Coast SD increased in value by $31,250 for the past year to reach an annual median price of $576,250. Noosa continued holding the title of the most exclusive market compared to the Sunshine Coast local government area as Noosa houses generally cost $100,000 more.
In March 2018, the Noosa median house price reached $665,000 compared to the Sunshine Coast median house price of $563,000.
The Noosa unit market also performed well for the past 12 months, growing a stunning 7.1 per cent to reach an annual median price of $525,000 and remaining as the most expensive unit market in Queensland.
The Fraser Coast house market continues to be a steady performer, with annual median prices holding steady for the past quarter and increasing very modestly (only 1 per cent) for the past year. A typical house in Fraser Coast had an annual median price of $315,000 in March 2018.
The unit market performance was weak in the March quarter. However, its performance for the past year was better compared to the house market as the annual median unit price increased by 2.2 per cent. A typical unit in Fraser Coast had an annual median price of $259,500 in March 2018. Only about 11 per cent of the regional dwellings were units.
The Bundaberg house market has held its ground over the past five years, with a house costing about the same today as it did five years ago. However, the market showed small growth levels of 1.8 per cent over the past 12 months, which is encouraging.
A house in Bundaberg cost an annual median price of $285,000 in March 2013 and March 2018.
The unit market performed a bit better than the house market over the past five years. A unit in Bundaberg increased in value from $251,400 in March 2013 to $259,000 in March 2018.
Gladstone has stared down some of the most challenging market conditions in the state. This market lost 8.5 per cent over the 12 months to the March quarter to have a median house price of $280,000. This market is more than 38 per cent below where it was five years ago.
The unit market fell by 36 per cent over the past 12 months to an annual median unit price of $167,500.
The Rockhampton property market slipped moderately for the past year, with house prices falling by 1.9 per cent to $265,000 and unit prices contracting by 1.3 per cent to $295,000.
Units continued to outperform houses, as they’ve done for much of the year, and ended the year more expensive than houses. This atypical performance may be the consequence of the limited unit market, which represents less than 10 per cent of the region’s dwellings.
The Mackay house sales market has delivered an outstanding 4.1 per cent growth to the annual median house price to reach $333,250 and live up to last quarter’s forecast of a stronger start to 2018.
This market is now officially in recovery.
However, the unit market performance remained weak as unit prices fell by 7.8 per cent to $212,000 for the past year. Mackay is the second most affordable unit market in the state.
Townsville delivered a surprising fall of 3 per cent in the annual median house price for the year to March to reach $325,000.
Even more surprising, units grew a massive 5.7 per cent for the year to March to $280,000.
Cairns delivered steady growth of 2.5 per cent over the past 12 months to arrive at an annual median house price of $410,000 in March 2018.
The Cairns house market has been one of the top two regional performers (excluding the south-east corner) for the past five years of all the areas analysed in the Queensland Market Monitor. House prices increased by 17.1 per cent, or $60,000, from $350,000 in March 2013.
The unit market was weak in the year to March, with the annual median unit price falling by 1.7 per cent to $232,000.
Gold Coast Property attracting buyers
The Gold Coast may be famous for attracting millionaire buyers, but it’s also home to a host of affordably-priced properties that make the most of their heavenly surroundings.
Whether you’d like to see and be seen at celebrity-favourite Surfers Paradise or unwind at the peaceful sands of pristine Palm Beach, these apartments offer the enviable Gold Coast lifestyle without the lavish price tag.
Just moments from the sea and sand, these five properties cost under $500,000 — a sensible spend for your first-home buyer, down-sizer or investor.
80 The Esplanade, Surfers Paradise QLD 4217
Spectacular views on a budget: On the balcony of 80 The Esplanade, Surfers Paradise.
2 bed, 2 bath, 1 car
Agent: Ray White Surfers Paradise Group, Jordan Thams 0414 602 022
This spacious apartment in the heart of Surfers Paradise has a glorious outlook over the beachfront and the skyline, viewable from an extended wrap-around balcony.
Featuring both an indoor and outdoor pool, a spa, tennis court, entertainment area, spa and steam room, the complex is perfectly positioned to provide a host of lifestyle and leisure options.
Agent Jordan Thams said its location and amenities made the block increasingly popular for owner-occupiers.
“There [are] 164 apartments in the building and there [are] only about 38 properties that are still in a holiday pool, and that number’s been decreasing for the past ten years,” he said.
“It’s extremely close to the Cavill [Avenue] Mall. It’s only probably a three minute walk down the road, so close enough to walk in to all the facilities of Surfers Paradise, but far enough away that you don’t have any noise issues.
“The light rail is directly behind the building as well, so there is a back entrance gate to the building where you can step straight out to Surfers Paradise Boulevard and the light rail stop is right there.”
27/1941 Gold Coast Highway, Burleigh Heads QLD 4220
Views and vibes: 27/1941 Gold Coast Highway, Burleigh Heads.
2 bed, 2 bath, 1 car
Agent: PRD Nationwide Burleigh Heads, Braiden Smith 0413 203 626, Mark Smith 0418 768 053
This bright, cheerful apartment has a secret feature: its own private walkway to the white sands of the beach.
Its two spacious bedrooms offer unfettered views of the ocean and hinterland, while the open plan living space spills out to a sunny north-facing entertaining deck.
For sale fully furnished, it’s the perfect weekend getaway or investment opportunity, just a short walk away from Burleigh’s popular retail and dining precinct at James Street.
Further along the coastline, there’s also easy access to the famous surf break of Burleigh Heads Beach, the striking headland and lush nature reserve.
25/8-12 Marine Parade, Miami QLD 4220
Live at the beach for less: 25/8-12 Marine Parade, Miami.
Price: Interest over $499,000
2 bed, 1 bath, 1 car
Agent: Kingfisher Realty, Juliana Gomes – LREA 0409 205 012
This contemporary north-facing unit is set on the top floor of a boutique complex of just 27 apartments, minutes from Miami’s vibrant cafe culture.
Currently leased for $400 a week, it would make a low-maintenance addition to an investment portfolio.
Agent Juliana Gomes said the home’s strong bones and stellar location made it highly desirable.
“The apartment has high ceilings so it’s very airy and bright, and you do have a glimpse of the ocean from the balcony,” she said.
“It has very spacious bedrooms and it’s an older style apartment, so the construction is very solid.
“The location is fantastic. It’s just across the road from Piccolo [coffee shop] and Miami Surf Lifesaving Club — it’s really an area that’s growing and emerging, and it’s really popular.
“That’s a very desirable position to be in: beachside at Miami.”
1F/973 Gold Coast Highway, Palm Beach QLD 4221
Unit 1F/973 Gold Coast Highway, Palm Beach, is located in the iconic Royal Palm complex.
Price: Over $450,000
2 bed, 2 bath, 1 car
Agent: McGrath Palm Beach, Brendan Andrews 0417 788 882, Rebecca Leo 0419 880 822
If you’ve ever dreamt of living in a resort befitting of an island paradise, this may be your lucky find.
This immaculately-kept apartment is part of the luxurious and iconic complex “Royal Palm” which features an enormous pool, spa, tennis courts and mini-golf.
Minutes from the beach, shops, cafes and the picturesque Currumbin Creek, the two-bedroom unit is bright, functional and a perfect blank canvas for your inner interior designer.
It was recently updated with new paintwork and carpets, so would make an easy move for the keen owner-occupier.
8F/50 Old Burleigh Road, Surfers Paradise QLD 4217
Unit 8F, 50 Old Burleigh Road, Surfers Paradise.
2 bed, 2 bath, 1 car
Agent: HC Realty, Jim Mylonas 0459 922 066
It doesn’t really get more beachfront than this.
This apartment complex offers green lawns and lounges just metres from the sand — not to mention a tennis court, pool, sauna, spa and barbecue area.
Set on the eighth floor, this home’s compact floor plan is ideal for those looking to de-clutter or enjoy a low-maintenance lifestyle.
An added bonus? Investors would barely have to change a thing, as the property is currently tenanted for $500 a week.
Hinterland areas rising in demand
Analysis by CoreLogic has highlighted locations in close proximity to capital cities which have seen interest due to ‘tree changes’, that has been the result of a wide number of factors.
Analysed by Tim Lawless, CoreLogic’s head of research, there were three main factors behind the increased demand in tree changes.
The first was due to the ‘wealth effect’, with home owners – especially those in Sydney and Melbourne – previously seeing their own finances increase due to their property, as well as the rising number of baby boomers looking for holiday homes or downsizing options.
Telecommuting was the second factor, which allows for employees to work from home, thereby de-emphasising the need to travel to a physical location for employment.
Affordability is always an important choice, and in this case is Mr Lawless’ third factor, as analysis showed hinterland properties tend to be priced lower than those in coastal or big city areas.
The analysis took a look at key hinterland markets in six states:
Unsurprising to some, the hinterlands markets in NSW are on the more premium end of the market; the Southern Highlands area currently has a median price of $735,371, the Blue Mountains is currently at $619,778, while theValley – Hinterland is more on the affordable end of the scale with a median price of $335,718.
In the short-term of the last 12 months, these three areas have seen limited value growth, with the former two rising by 1.4 per cent and 3.2 per cent respectively, while the Blue Mountains entered negative territory, declining 0.7 of a percentage point.
Looking more mid-term over the last five years, a different picture is painted, with values in the Southern Highlands rising 9.3 per cent, the Blue Mountains rising 9 per cent, and the Richmond Valley – Hinterlands area saw a rise of 3.9 per cent
Also in the more premium side of the market, noteworthy hinterland markets in Victoria are the Yarra Ranges and the Macedon Ranges with median dwelling values of $674,944 and $700,664 respectively. In the short term of the last 12 months, the Macedon Ranges has performed exceptionally with a rise of 7.5 per cent in value change, while the Yarra Ranges have been underperforming, declining by 0.6 of a percentage point. In the mid-term of the last five years however, the top performer switches with the Macedon Ranges growing only 2.6 per cent, while the Yarra Ranges have seen values rise by 7.8 per cent.
Moving into more affordable territory, theCoast Hinterland and Gold Coast Hinterland regions have median dwelling values of $539,292 and $593,954 respectively. Both these areas have experienced solid growth in the short- and mid-term; in the last 12 months, the Sunshine Coast Hinterland value rose by 2.2 per cent while the Gold Coast Hinterland rose by 8.1 per cent; the largest rise out of all of the key hinterland markets. Over the last five years, the ranking stays the same but the percentages normalise slightly; Sunshine Coast Hinterland saw values grow by 4.5 per cent and the Gold Coast Hinterland rose by 6.8 per cent.
The main hinterland regions for metropolitanfollow a similar trend to that of Perth itself – continued softening. Mundaring and Kalamunda currently have similar median dwelling values of $452,224 and $457,055 respectively. In the short-term of the last 12 months, these values have declined by 4.3 per cent and 5.7 per cent respectively, while in the mid-term of the last five years the declines are less severe with drops of 3.8 per cent and 2.6 per cent respectively.
The Adelaide Hills region is the only noteworthy hinterland area according to CoreLogic, which has seen little success, but success none the less. With a median dwelling value of $494,166, this has been a rise of just 0.8 of a percentage point in the short-term of the last 12 months, and a rise of 2.1 per cent for the mid-term of the last five years. This puts Adelaide Hills as the smallest value growing hinterland market for both the short- and mid-terms.
The Central Highlands of Tasmania is the most affordable hinterland region analysed with a median dwelling value of $214,000, but it is delivering solid growth. In the short-term of the last 12 months, the Central Highlands saw dwelling values rise by 6.8 per cent, and in the mid-term over the course of the last five years, dwelling values rose by 5.1 per cent.
Gold Coast among the most expensive regional QLD cities to rent property
A new report reveals the Gold Coast is one of the most expensive regional Queensland cities to rent property.
RENTERS on the Gold Coast are forking out some of the highest prices for properties in regional Queensland.
A new report released by non-government social housing provider, Compass Housing Services, reveals the Gold Coast has the second highest median rent in regional Queensland.
The report lists the median rent each week on the Coast as $440, meaning tenants would need a weekly income of $1467 to be able to afford it.
While also in the top five of least affordable areas are; Noosa at $457.50, Gympie at $285, Hervey Bay at $320 and the Sunshine Coast at $430.
REIQ Gold Coast zone chairman Andrew Henderson said one of the main factors affecting prices was the lack of properties available for rent as owner-occupiers were the region’s dominant buyers.
He said the fluctuating number of tourists and transient workers also contributed to the property shortage as well as the type of those available, while the slow release of land for new housing estates put added pressure on the rental market.
“The Gold Coast has got some unique factors,” Mr Henderson said.
“That diversity is also a bit of a challenge when trying to break down those figures.”
Latest data from the Residential Tenancies Authority shows suburbs in the 4217 postcode — including Benowa, Bundall, Main Beach and Surfers Paradise — were the most expensive areas to rent with $850 the median price per week for a four-bedroom house.
That is $120 more than the same period the previous year.
The cheapest place to rent was the 4209 postcode — which included Coomera, Pimpama and Willow Vale — with $179 the median price per week for a one-bedroom flat.
Coomera, Pimpama and Willow Vale are among the cheapest suburbs to rent on the Gold Coast.
Lucy Cole Prestige Property managing director Lucy Cole said areas in the northern corridor were cheaper because there were plenty available.
“Because there’s so much competition up there, (rent) is lower,” she said.
She said quality homes at the heart of the city were harder to find and offered the best of the coast lifestyle, which made them more expensive.
“We know that there’s a scarcity of good properties,” she said.
“The size and (number of) rooms also plays a big part.
“If it’s a multimillion-dollar home … that’s where you’d expect to pay more.”
CoreLogic research analyst Cameron Kusher said while house value growth was slowing across the Coast, rental growth looked to remain strong.
“This is potentially reflective of the increasing number of residents moving to the region but they are choosing, at least initially, to rent rather than buy,” he said.
“Rental growth is expected to continue along at a fairly strong pace, especially considering that migration to southeast Queensland remains strong.”
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