The property market in the southeast corner of Queensland returned to positive territory this quarter, following last quarter’s contraction, and the Brisbane LGA median house price has grown 1.3 per cent to a new high of $635,000, the highest this has been in history.
The data in the REIQ Queensland Market Monitor also revealed some surprises in the June quarter, including almost three per cent growth in the Townsville market – its second quarter of growth in the past year – a two per cent fall in the Toowoomba market, which brings the city of flowers its second contraction in two consecutive quarters, and an unusual twist in Bundaberg where the median unit price is more expensive than the median house price. It’s cheaper to buy a house than a unit in Bundaberg.
REIQ CEO Antonia Mercorella said it had been a challenging quarter for the Queensland property market, with factors such as the lengthy federal election campaign and extensive uncertainty around the negative gearing debate impacting heavily on most markets.
“We know from our agents that listings volumes were down and the whole market really just hit pause while they waited for a result in the election, which would also give certainty around negative gearing for investors,” she said.
“Most of Queensland has struggled through this uncertainty and we have seen more markets contract than grow, which, of course, is disappointing,” she said.
“However, there has been significant focus on Queensland’s affordability and we have anecdotal evidence that investors from the southern states are once more returning to our markets,” she said.
“The Queensland housing market is doing what it does best – growing in a steady, sustainable way, consistently over the long term and it is a very good thing that we have not followed the peaks and troughs that occupy the graphs of other property markets,” Ms Mercorella said.
Brisbane’s unit market fell just a fraction, 0.2 per cent, to $440,000 for the quarter. However, the annual median sale price grew 0.3 per cent compared with June 2015, to $441,300, and this is 7.6 per cent greater than five years ago.
The Gold Coast powered to a new median house sale price of $580,156, representing quarterly growth of 3.6 per cent. The annual median sale price, of $560,000 is 6.7 per cent higher than 12 months ago and 14.9 per cent higher than five years ago, establishing the Gold Coast as one of the best performers in the state.