Brisbane’s new median house prices have hit a new high of $655,000, said the Real Estate Institute of Queensland (REIQ).
REIQ’s Queensland Market Monitor: December 2016 quarter report showed that the sunshine state’s housing market had shown moderate growth throughout last year, with a final quarter revealing a strong result for houses in the south-east corner with weaker demand for units.
The annual median house price grew 4.1 percent over the past year, and the Brisbane residential home market was a dependable performer, said its CEO Antonia Mercorella.
“This is the consistent, sustainable growth that the Brisbane house market has become known for and it is great that it’s such a solid performer,” she said.
The apartment market performed less well, falling 4 percent this quarter, with supply issues finally gaining traction that many had forecast. However, in comparison with the last 12 months the unit market has only fallen 1.1 percent, and over the past five years, the market is still in positive territory, having grown 11.3 percent.
“These supply issues have, as expected, had a small impact on prices, how
ever, we know that the market is an excellent self-regulator and developers are already scaling back projects scheduled for this year and 2018,” Mercorella said.
Here is the low-down on how the property market in Queensland performed throughout the state’s suburbs and cities according to REIQ”s report.
The Ipswich median house price increased marginally this quarter, by 0.8 percent, to $332,700. This market is holding steady. While it has only grown by a slender 0.9 percent over the past 12 months, it is about 5.5 percent higher than five years ago. The Ipswich unit market is much more volatile than the housing market, and this is partially due to the stuttering nature of supply coming onto the market. The median unit price fell 10.6 percent this quarter, to $272,750, however, over the past five years the market is still showing modest growth of 7.1 percent.
Logan and Moreton Bay
Logan and Moreton Bay houses were the strongest growth markets in the Greater Brisbane region this quarter, with Logan’s median home price growing 2.4 percent to $384,500 and Moreton Bay’s median house price growing 1.8 percent to $422,250.
Logan’s unit market is the most affordable in Greater Brisbane and fell 1 percent in the December quarter, to $250,500.
Moreton Bay’s unit market fell 2.9 percent this quarter, however, with a median price of $330,000 it remains the second-most expensive unit market in Greater Brisbane after Redland.
The Redland house market is the cream of the Greater Brisbane crop. With a quarterly median house price of $510,000, even though this market showed zero growth over the quarter, it remains the most expensive home market after Brisbane LGA. The Redland annual median house price grew 4 percent over the year, which is similar to Brisbane LGA levels, and has increased almost 15 percent (14.8 percent) over a five-year period.
Similarly, the unit market is also the most expensive in Greater Brisbane. Even though the quarterly price fell a startling 10.2 percent in just one quarter, the market is 7 percent higher than it was five years ago. It would be fair to say this is a weak market at the moment.
The Gold Coast house market has outperformed almost every region in Queensland over the past 12 months, with the annual median home price growing 5.8 percent to $575,000. Only the Sunshine Coast outstripped this market for annual growth. The Gold Coast market also had a strong quarter, growing 2.6 percent to reach a quarterly median of $590,000.
The Gold Coast unit market bucked the statewide trend of falling unit prices, adding one percent over the quarter and 5.5 percent over the past 12 months. The continued massive infrastructure and construction programs have attracted workers and been a significant driver of population growth.
Over the past five years, Toowoomba has been a solid performer, with its residential housing and unit market adding between 21 and 23 percent price growth. However, we see this market as potentially levelling off as demand begins to contract. The median house price grew just 0.9 percent this quarter, to $355,000 and over the past 12 months, the market has fallen 1.1 percent.
The Toowoomba unit market has stalled with just 0.4 percent growth this quarter and a fall of 0.2 percent over the past 12 months. The quarterly median unit price is $290,000.
The Sunshine Coast LGA has taken first prize for market growth this quarter and the year. The market grew 4.8 percent this quarter, to a median house price of $545,000 and a hefty 6.1 percent for the year. Over the medium term, (five years), it is 20.7 percent higher.
The unit market has held its own in a climate of healthy supply, and although it only grew 0.2 percent, to a median price of $375,750 this quarter, it added a modest 1.6 percent for the year and is 10.3 percent higher than it was five years ago.
The Fraser Coast median house price fell 2.3 percent for the quarter, to $303,000 and over the past 12 months, it has demonstrated zero growth (and no contraction either). Five years ago the annual median house price was $285,000 which means it has grown 7 percent over five years. This is modest growth.
The unit market in the Fraser Coast is tiny, with just 52 sales this quarter. The median unit price fell in the December quarter, by 6.7 percent, to $230,000 and this makes it one of the most affordable markets in Queensland. Only Cairns, Mackay and Gladstone have more affordable unit markets.
Bundaberg has had an extraordinary quarter, with the quarterly median house price growing by a significant 14.1 percent to $291,000. This brings the market back to almost where it was five years ago. In 2011 the annual median house price in Bundaberg was $278,000, which is just 1.1 percent higher than the annual median house price today of $275,000.
The unit market has been somewhat volatile over the past 12 months and by December 2016 the quarterly median unit price, off just 28 sales, was $235,000 which is a market contraction of six percent. Looking to the medium term data, Bundaberg unit prices in 2011 were 6.7 percent higher than in 2016.
The Gladstone median house price fell 3.2 percent this quarter, to $290,000 and over the past 12 months, the market has lost 10.7 percent.The unit market fell 20.3 percent, to $185,000.
This market continues to feel the impact of the resources downturn and news last week that the Boyne Island Smelter was scaling back production levels and reducing its staff by up to 100 workers due to soaring electricity costs will only add to market pressures.
Despite some promising signs in the September quarter, the December quarter brought more pressure on the Rockhampton quarterly median house price, with a fall of 5.9 percent to $273,000. This market has fallen 5.2 percent this year and 10.8 percent over five years and is now the most affordable market measured in the QMM report.
The unit market was too small to record a median unit price, with just 16 transactions this is not a meaningful sample size.
While there is good news on the horizon with Mackay being named a FIFO base for the Adani mine, the market is still finding its footing. The quarterly median house price of $318,000 is just 0.2 lower than the September quarter. However, this market remains 20.9 percent lower than five years ago, when the median house price was $411,000.The unit market is small, as it is in almost every regional Queensland town. The quarterly median unit price of $200,000 (off 32 transactions) is 6.3 percent lower than the September quarter. The market is 18.2 percent lower than 12 months ago and 29.9 percent lower than five years ago, when the median unit price was $321,000.
The Townsville market has had a buoyant final quarter of 2016, with the median house price growing an impressive 4.6 percent to $345,000. The area is set to benefit from essential infrastructure and government spending programs, including the $250 million football stadium and planning for the $1.6 billion Port of Townsville project, which will help employment figures and stabilise business confidence.The unit market held steady this quarter at $260,000, and while there was zero growth this quarter, there was also zero contraction. Unfortunately, the market has contracted 4.3 percent over the year and compared with five years ago, has contracted 16.2 percent.
The Cairns market is one of the few regional markets that has performed moderately well over the past five years. The quarterly median house price did not grow this quarter, holding steady at $395,000, but compared with 2011, increased 12.2 percent.
The unit market fell 6.1 percent over the quarter to $225,000, however, for the year the market has grown four percent and rose 6.8 percent over the past five years. This is remarkable when compared with other regional unit markets.