QLD Market on road to recovery

Written by Dan Molloy in Property News on August 25, 2011

Median House Prices Queensland - Q2 June 2011Queensland’s residential property market has regained some of the ground it lost following the natural disasters earlier this year, according to the Real Estate Institute of Queensland (REIQ).

The REIQ June quarter median house price report found that preliminary sales numbers in many areas across the State are on the road to recovery, however, property price growth remains relatively subdued.

The median house price in Brisbane decreased 1 per cent to $510,000 over the June quarter but recorded a 0 per cent change over the year ending June. Whilst the median slightly decreased the preliminary number of house sales in Brisbane over the June quarter was up 7 per cent compared to the March quarter, the standout for increased house sales in South East Queensland was the Logan region, which recorded a 22 per cent increase over the period.

Gladstone is again the top performer for price growth across the State with its median house price increasing 6.1 per cent to $440,250 over the quarter. The region has recorded an impressive median house price increase of 10.8 per cent over the year ending June.

The multibillion-dollar investment in Queensland’s resources industry in the Central Queensland region is again behind Gladstone’s strong performance but we are also seeing this market strength radiate out to its neighbours of Mackay and Rockhampton in this quarter as well.

Mackay’s median house price increased 4.4 per cent to $413,500 over the quarter, while the number of preliminary house sales in Rockhampton was up 23 per cent compared to the previous quarter.

The strength of Queensland’s resources sector would underpin the Queensland property market more broadly from the second half of 2012 or early 2013.

Across the state, however, buyers continue to be mostly hesitant given the steady stream of poor economic indicators being released both here and overseas.

The high Australian dollar also continues to impact Queensland’s premier tourist destinations with sales numbers down 9 per cent and 10 per cent on the Gold Coast and Cairns respectively over the quarter. Sales in the Sunshine Coast, however, were up slightly over the same period.

The Queensland property market also continues to be impacted by lower consumer confidence and the uncertain nature of the global economic situation, including the recent pronounced stock market jitters around the globe.

The number of buyers active in the Queensland marketplace is still well below long-term averages and until there is more certainty surrounding interest rates and the global financial landscape generally this circumstance is unlikely to turnaround before next year.