What’s happening to the property markets around Queensland? Michael Matusik link here
This missive continues on from last week’s national sales volume wrap-up & focuses on the Queensland regional markets.
So what is happening, sales volume-wise, across the Sunshine state?
Improving markets
Let’s start with the Gold Coast.
Overall, sales volumes (which includes settled house, attached dwelling & land sales) on the Gold Coast have increased by 4 per cent on last year, to 7,100 settled sales over the past 12 months, according to the REIQ.
Another market which has improved in terms of sales volumes is Toowoomba, with 2,000 sales this year, which is up 9 per cent on 2012.
Other improving Queensland markets include the Sunshine Coast, with 4,450 sales this year, up 13 per cent on the year before. Also doing well – and despite the recent flooding – is Bundaberg with 1,100 sales this year, up also 9 per cent on 2012.
But the big surprise is Cairns, where sales volumes, on an annualised basis, are up a big 18 per cent to 2,250 transactions over the last 12 months.
Stalled markets
Markets which have stalled – sales-wise – across Queensland include Rockhampton, with little or no change in annual sales volumes over the last couple of years; 1,620 sales settled across Rocky last year.
The Townsville market saw a 2 per cent drop in sales volumes this year. 2,260 sales settled in Townsville during the 12 months to 31st March.
Mackay has also stopped, with a 4 per cent drop in sales this year. 1,700 sales settled across Mackay over the last 12 months.
Declining markets
The Hervey Bay region is doing it a bit tough with sales volumes down 6 per cent on last year. There were 930 sales in this region over the last year.
Gladstone has now entered a downturn, with a 39 per cent fall in sales volumes & with just 820 settled sales over the past 12 months. More pertinently, the fall in sales has been across the wider market with sales falling 36 per cent for houses; down 43 per cent for apartments/townhouses & down 45 per cent for vacant land.
No other major Queensland region, despite having sales volumes drop overall, had a clean sweep across all three key markets. Investors now need to be very careful of what they buy & how long they hold property for, when it comes to the Gladstone market.
Overall, there were 47,500 sales across Queensland (including the Brisbane region) over the last 12 months. This is up 2.5 per cent on the year before.
As mentioned recently a market’s position can be determined (in part) by sales volume trends.
It now appears that Hervey Bay; Mackay & Townsville are approaching a peak. All three will most likely continue to improve in coming years, but the rate of recent growth is unlikely to be repeated. Right now they are all taking a breather, so to speak.
The Rockhampton region – for mine – is about to see a lot more sales as part of the fall-out from Gladstone’s peak/downturn.
Markets that look set to improve include Cairns; Toowoomba; both the Gold & Sunshine Coasts & Brisbane, which as outlined last week, has seen a 10 per cent lift in sales volumes over the last year.
Again, it is interesting to see how small some of these regional markets are.
For example, half of the sales across Queensland take place in Brisbane, with the south east corner of the state actually having a 75 per cent market share.
The Gladstone market, for example, comprises just 2 per cent of all sales across Queensland. Given the amount of property-rated press this area gets, an outsider might think that it was the state capital.
Almost two-thirds (63 per cent) of the property bought across Queensland is detached houses, with 27 per cent being attached dwellings & 9 per cent vacant land.
Land sales are down 11 per cent across the state; whilst house sales & apartment sales have improved by about 4 per cent each since this time last year.
A couple of land markets have broken this trend, including Cairns & the Sunshine Coast (where land sales are up 26 per cent in both areas); Hervey Bay (sales up also 8 per cent) and in Brisbane City (up 3 per cent) plus Toowoomba (up 2 per cent).
For mine, there are three main reasons why these land markets are doing better –price; product & scarcity.
Cairns & Hervey Bay have finally dropped their values low enough to warrant ‘value’ in the buyer’s mind.
There isn’t enough new land being released (available) in Brisbane City & the Sunshine Coast offers land in largely quality estates, with many of the allotments in close proximity to the new regional driver up there – the Kawana Health Hub.
Any expressed market opinion is my own and is not to be taken as financial advice
Good news has finally started trickling out of the Queensland housing market, with the Real Estate Institute of Queensland (REIQ) indicating sales activity and house prices in the state are strengthening.
The REIQ June quarter median house price report found the number of sales increased ‘significantly’, with preliminary numbers indicating house sales across the state increased 22% on March quarter figures.
The June 2013 quarter figures were also 40% higher than figures for the June quarter of 2012.
“This is the fourth consecutive quarter of positive news, said REIQ spokesperson Anton Kardash. “The September quarter last year was a particularly strong one for the Queensland market and that momentum has been sustained throughout the following three quarters of sales activity.”
Over the June quarter, REIQ data shows the median house price in Brisbane increased 1.6% to $527,250 and increased 3% over the year ending June. The numbers of house sales in Brisbane also increased compared to the previous quarter and last year – up 32% and 44% respectively.
The median house prices in Logan City, Moreton Bay and Redland City all also increased over the June quarter.
Toowoomba posted yearly median house price growth of 4.5%, the Gold Coast increased by 3.1% and the Sunshine Coast median price grew by 2.3%.
“REIQ estimates of Queensland investor activity also shows that the numbers of investment dwellings financed is tracking at about the historical average,” says Kardash. “No doubt, investors have recognised the strong rental market, including low vacancy rates, and are taking the plunge while first home buyers remain relatively absent.”
The numbers of first home buyers in Queensland remain well below historical averages at just 11% of dwellings financed in June – a decrease of 35% compared to June last year.
Overall, there were 47,500 sales across Queensland (including the Brisbane region) over the last 12 months. This is up 2.5 per cent on the year before.
The REIQ come out with a bunch of statements that could mean anything
Quote:
The REIQ June quarter median house price report found the number of sales increased ‘significantly’, with preliminary numbers indicating house sales across the state increased 22% on March quarter figures.
The June 2013 quarter figures were also 40% higher than figures for the June quarter of 2012.
“This is the fourth consecutive quarter of positive news, said REIQ spokesperson Anton Kardash. “The September quarter last year was a particularly strong one for the Queensland market and that momentum has been sustained throughout the following three quarters of sales activity.”
Seems like your typical load of BS that comes out of the REIs in Australia.
Overall, sales volumes (which includes settled house, attached dwelling & land sales) on the Gold Coast have increased by 4 per cent on last year, to 7,100 settled sales over the past 12 months, according to the REIQ.
Markets which have stalled – sales-wise – across Queensland include Rockhampton, with little or no change in annual sales volumes over the last couple of years
It's all bad news still really. The market in QLD is like a drunk who has fallen into the gutter and after an hour raises his elbow, it doesn't imply he is about to get out of the gutter and go clean himself up.
No surprises with Rocky or the other tired old town of its ilk. I would think anyone holding real estate up here for any other purpose than to live in would be quite alarmed by now. Or at least they should be.
As the jobs go on the gold coast it will turn into a Detroit. That's a given
The June quarter is the fourth consecutive quarter of positive news for vendors in the Queensland market, with both sales activity and the median house price strengthening, according to REIQ.
The preliminary tally of house sales volume increased 22% in the June quarter when compared to the March quarter.
Compared to the same period last year, house sales are up 40%.
“The June quarter historically yields the lowest numbers of residential sales activity during the year but this data shows house sales are notably much higher compared to the same three months in 2012,” says REIQ chief executive Anton Kardash.
The median house price in Brisbane increased 1.6% over the June quarter to $527,250 and the number of sales increased 32% over the June quarter and 44% when compared to the same period last year.
Over the last financial year, the Toowoomba median house price increased 4.5% to $315,000.
Gold Coast’s median price increased 3.1% to $466,000 and the Sunshine Coast’s median house price increased 2.3% to $438,000 over the last financial year.
“The September quarter and the upcoming spring selling season is typically a great period for the Queensland real estate market,” says Kardash.
“And with such good price and sales results for the June quarter, as well as historically low interest rates, it’s shaping up to be another strong period as our market continues to build momentum.
“No doubt the influence of historically low interest rates and increased perceptions of housing affordability have seen more people move off the sidelines and back into the property market of late.
“REIQ estimates of Queensland investor activity also shows that the numbers of investment dwellings financed is tracking at about the historical average,” says Kardash.
Kardash says investors have recognised the strong rental market, including low vacancy rates and are taking a plunge.
Although interest rates are at historical lows, first home buyers in Queensland remain well below historical averages at just 11% of dwellings financed in June, a decrease of 35% compared to June last year.
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