Queensland property market defies slowdown

Queensland’s property market is still experiencing “healthy growth” and continues to defy the slowdown seen elsewhere, according to the Real Estate Institute of Queensland (REIQ).

CoreLogic data shows median home prices in Queensland rose 3.23% and median unit prices rose 2.17% in the first quarter of 2022.

REIQ CEO Antonia Mercorella said the stage was set for continued growth in Queensland after a positive start to the year.

“Over the past two years, the history of the Queensland property market has been extraordinarily positive from a seller’s perspective, and the latest quarterly data tells us that the market in the sunny state is still a rising star,” said said Ms. Mercorella.

“The first quarter of 2022 has been fraught with challenges such as the COVID-19 outbreaks, the flood disaster, the series of long weekends including the Easter shutdown, the impending federal election and signs indicating a rise in interest rates, with some banks adjusting early in anticipation.

“Despite all of these disruptive events that may have caused some buyers to pause their search, the market continued to show healthy growth, and I’m sure the median prices achieved this quarter will surprise some of us.

“For example, the median property price in Brisbane (LGA) exceeded $1 million this quarter, and while this may be grim news for some, it still represents relative affordability compared to southern states, and no doubt our capital is long awaited. for its time in the sun after years of steady but modest growth.

Mercorella said widespread growth across the state has been one of the most positive aspects of today’s market.

“What’s pleasing about the latest results is that, again, it’s not just our capital that’s performing well – our real estate markets and regional hub communities also continue to benefit from an increase in growth,” she said.

“Of course, it can be easy to become disillusioned and discouraged as a buyer seeing these prices reach new highs, but it’s important to remember that these are median sales figures over a relatively short and that there are always more affordable options in areas with a median of $1 million – so it’s worth doing your research before assuming an area or suburb is out of your reach.

Mercorella said the outlook for the state’s housing market continues to be positive.

“Our state still has all the fundamental ingredients for continued growth – a booming population, very low supply, strong and cashed-in buyer demand, relative affordability and low interest rates,” she said. declared.

“So even if we face further interest rate hikes, we expect it will take time to have a noticeable impact on buyers’ pockets and selling prices, and in the meantime, the obvious shortage procurement will continue to tip the scales in favor of sellers, as buyers compete to secure a property.

“We expect there will also be buyers waiting in the wings who may decide the time is right to rush in while they can still get low fixed rates.

“Certainly, with the extreme tightness of the rental market, the transition to ownership would be increasingly attractive for tenants.

“We recognize that at some point the rate of growth we see in Queensland will start to level off and level off, simply because it would be difficult to sustain that level of accelerated growth – but for now, there is still plenty of wind in the Queensland sails. real estate market.”

Queensland Home Market

During the March 2022 quarter, the median home price in the Brisbane Local Government Area (LGA) topped $1 million based on almost 3,000 sales, rising 5.31% during the quarter to hit a new high of $1,090,000.

Brisbane suburbs joining the ‘median million dollar homes club’ based on sales in this quarter alone include Parkinson, Sunnybank, Mount Gravatt East and Upper Mount Gravatt on the south side, and Upper Kedron, McDowall , Stafford and Stafford Heights on the north side.

Greater Brisbane also saw an uptick in median home value in the quarter, rising 2.84% to $760,000, which is fairly consistent with the bigger picture of $685,250 for the price. median sales over 12 months (a 20.22% increase over 12 months). .

By far the best quarterly performer for homes was Noosa LGA, with a whopping quarterly increase of 15.38% to a mouth-watering median of $1.5 million based on almost 200 sales.

Logan was next with a quarterly increase of 7.75% to $598,000, followed by Toowoomba (up 6.67% to $480,000), Gladstone (up 6.58% to $405,000) and Ipswich (up 6.38% to $500,000) to complete the top five major LGAs with the biggest jumps in the quarter.

Conversely, the median house price in Mackay’s LGA fell 2.3% in the quarter, but importantly, still achieved growth of 7.69% looking at its performance over a period of 12 months.

Similarly, Rockhampton (up 1.69%) and Cairns (up 1.96%) both saw minimal growth in the quarter, but remained in double-digit 12-month growth territory. at 10.34% and 12.5% ​​respectively.

Queensland Unit Market

Brisbane LGA’s median unit price reached $490,000, up 2.08% from the March 2022 quarter (based on 2,694 sales), consistent with the overall picture of growth in 8.29% over 12 months to reach an annual median selling price of $470,000.

Greater Brisbane’s median unit price was not far behind, rising 2.22% to $460,000 in the quarter (based on 3,800 sales) and rising 8.11% to $440,000 in 12 month.

The top five performing units in terms of growth for the quarter were Gladstone (jumping 18.37% to a median price of $290,000), Fraser Coast (up 16.18% to $395,000), Logan ( double-digit growth of 10.91% to $305,000). ), Sunshine Coast (up 7.21% to $646,000) and Moreton Bay (up 6.05% to $403,000).

This March quarter saw some median unit prices decline, in the case of Bundaberg a considerable drop of 13.11%, while Noosa was down 5.10%, Rockhampton was down 3.3% and Toowoomba experienced a slight drop of 2.97%.