According to the Real Estate Institute of Queensland (REIQ), median house prices rose 1.8% from July to September 2021. Local government areas (LGAs) with tourist attractions and Greater Brisbane are popular among buyers , and growth in some regions remains strong despite Market volatility.
According to REIQ Managing Director Antonia Mercorella, the remarkable surge in property prices in Queensland is the result of a variety of factors fueling huge demand from buyers.
“Queensland has never seen this sustained level of demand and accelerated growth before, but after years of modest growth prices here are catching up,” Ms Mercorella said.
Brisbane recorded the highest number of home sales in the quarter with 3,912 homes sold. Just behind were Gold Coast, with 2,419 homes sold, Moreton Bay at 1,945, Coast SD at 1,510, Logan at 1,413 and Ipswich at 1,366, proving that the way of life and the outskirts of the city remain popular.
Ms. Mercorella attributed the sales success to interstate migration: “With cashed interstate buyers comfortable with auctions and able to snag properties with competitive bids, it’s no wonder interstate migration to Queensland has peaked nearly 20 years ago, so that southerners are settling in droves here. “
Median house prices
With the opening of borders, it’s no surprise that median house prices have reached record highs.
The median price of homes in Brisbane rose 4.7% in the third quarter to a new record high of $ 900,000, an increase of 15.5% from the previous year. And even with a quarterly increase of 2.8% to $ 640,000, Greater Brisbane remains affordable for people looking to live on the outskirts of the capital.
Noosa apparently stood out in terms of growth in the quarter, with a double-digit increase of 13%, following the 19.8% growth recorded in the June 2021 quarter.
Strong growth performances were also seen in Ipswich at 8.7 percent, Redland and Fraser Coast, both of which rose 6.5 percent, and Bundaberg at 6.4 percent.
Noosa scored a double win, recording the highest quarterly median sale price of $ 1.3 million, followed by $ 900,000 in Brisbane, $ 850,000 in Sunshine Coast SD (a statistical division comprising the Sunshine Coast LGA and Noosa Shire), $ 825,000 in Sunshine Coast and $ 810,500 in Côte d’Or.
Despite soaring house prices, it hasn’t dampened buyers’ desire to own property in Queensland, and the CEO of REIQ explained why: “Even as our median prices rise, our state is still showing better value for money, with investors looking to boost their real estate dollars and southerners keen to take advantage of our state’s incredible quality of life factor. “
However, the entire Sunshine State did not see growth, with regional centers Rockhampton down -3.2 percent, Gladstone -5.6 percent and Townsville down -0.1 percent. Mackay, on the other hand, remained motionless.
Nonetheless, those LGAs have grown at a respectable pace over the past year, with Gladstone leading the way with a big jump to 15.7%, a possible indication that his decline this quarter is a correction after three quarters of strong growth.
Median unit prices
Moving on to the median performance of unit prices in the quarter, Queensland saw a 3.5 percent increase.
Mackay made a strong comeback with double-digit growth of 17.4% (after swings up and down in previous quarters), Sunshine Coast at 12.1% and Sunshine Coast SD at 11, 1% also saw double-digit growth.
Cairns at 9.1%, Logan at 8.7% and Gold Coast at 6.3% are not left out. Greater Brisbane’s median unit price rose moderately 1.8 percent to $ 420,000.
Unit prices were more volatile in some areas, with median LGA unit prices declining in Gladstone to -14.8%, Rockhampton to -9.8%, Bundaberg to -8%, Noosa to -4% and Ipswich to – 2%. cent for the September quarter.
It should be noted that these LGAs have seen significant median unit growth in the previous quarters, with Gladstone increasing by 33.4% and Bundaberg increasing by 22.9% in March 2021, respectively, with Noosa increasing by 17.4% and Rockhampton. increasing by 14.6% in the June 2021 quarter.
Due to the popularity of coastal areas, it makes sense that the highest unit prices are in the coastal districts of Noosa ($ 850,000), Sunshine Coast SD ($ 600,000), Sunshine Coast ($ 560,000) and Gold. Coast ($ 510,000).
“It’s no surprise that Queensland property is still extremely attractive, given our state’s enviable lifestyle coupled with a sense of relative security and freedoms during the pandemic, and of course our relatively high affordability compared to to our counterparts in the cities of the south, ”Ms. Mercorella said.
Players in the Queensland real estate market can expect the state to shine brighter, Ms Mercorella added, after news that South East Queensland will host the 2032 Olympics and Paralympics, inevitably leading to a acceleration of investments and deadlines for infrastructure.
In addition, Ms. Mercorella stressed that “low inventory levels, record interest rates, high levels of consumer confidence and household savings, remote working arrangements more flexible than ever before and the fear of missing out are all additional factors that are driving the rapid growth in house prices and are fundamental ingredients for a strong market as we approach 2022. ”
Weighing on these growth factors, the CEO of REIQ concluded: “While predicting the next step is just a crystal ball, the market remains strong with 12-month growth averages indicating markets are up across the board. With the reopening of interstate borders and the opening of international borders coming soon, there is a good chance that we will see a surge of activity and increased demand at the start of the new year. “
Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.