Thursday, 4 June, 2015
The latest Real Estate Institute of Queensland data has revealed a shift in median house price trends across the state, and the Sunshine Coast is just one region benefiting from improved values.
Brisbane, the Gold Coast, the Sunshine Coast, Toowoomba and Cairns all experienced steady improvements in median house values, the report states, with the Sunshine Coast experiencing an average increase of more than 1.5 per cent each quarter over the past year.
REIQ Sunshine Coast Zone Chair, Amber Werchon, says the increase in median price is a positive sign for the Sunshine Coast property market.
“Any increase in the median is a good thing for the values, and property owners, in the region,” she told MPP.
And she adds there are positive signs that the growth will continue.
“We have been seeing sustainable growth since the September 2013 quarter. With the current development happening on the Coast, coupled with the low interest rates, it is likely that this will continue.”
According to the REIQ, Brisbane is the fastest selling area in Queensland and had the strongest lift to median house values for the year ending March 2015.
The REIQ median values data report shows that Brisbane’s days-on market statistic is just 57 – the fastest in the state. This is an improvement by 8 days, compared with a year ago. Last week’s release also shows that Cairns has been a standout performer over the past 12 months, with profit–making sales leaping from 78 per cent of transactions making a profit to 90 per cent.
REIQ CEO Antonia Mercorella says the data confirmed the REIQ’s position that Queensland is experiencing steady, sustainable growth.
“This report supports the REIQ’s long-held view that those areas of Queensland that have been doing well are continuing to do well. Those areas that are struggling to recover from the resources downturn are still trying to stabilise,” she says.
“But what we don’t have is the start of another boom and bust cycle, which, as we all know by now, doesn’t really benefit anyone in the long term.”
Standout trends from the report include the general sustainable lift of median house values across the south-east, Toowoomba and the tourism centres.
“It’s great to see Brisbane and Toowoomba keeping that steady rate of growth that we’ve seen for the past 12 months,” Mercorella says. “We all know the economy is still recovering and property is clearly leading the way.”
“People trust property and whether you’re an owner-occupier or an investor, property has shown to be a reliable performer over the long term.”
Brisbane local government area (LGA) median house values have risen by 1.6 per cent over the quarter, and, along with Toowoomba, this was the highest quarterly increase. Brisbane (LGA) proportion of profit-making sales increased 3 percentage points to 96 per cent, compared with a year ago. Meanwhile, Toowoomba holds the state’s record with 98 per cent of all houses sold recording a profit for the seller.
Also in Toowoomba, the quarterly growth in median house values is the strongest in the state, averaging an increase of 1.9 per cent over the past four quarters.
Outside of Brisbane, Toowoomba is the fastest-selling region, with days on market at 63. The Garden city also continues to hold the lowest average vendor discounting rate of 4.7 per cent. Cairns is also selling well, with average days on market at 65 and a vendor discounting rate of 5.8 per cent. The Gold Coast figures show average days on market at 72 with a vendor discounting rate of 6 per cent. While the REIQ figures for the Sunshine Coast show 84 days as the average time on market with a vendor discounting rate of 5.7 per cent.
Gladstone’s average days on market was 113 with a vendor discount of 9.9 per cent. While this shows the city isn’t performing as well as others in the state, the median house values increased by 0.8 per cent. Although this is a small jump, it is significant because it is the city’s first move into positive territory in five quarters.
The rate of decline in Mackay’s median values appears to be slowing, with a drop of just 1 per cent to its annual median value in the March quarter. Townsville’s median house values rose 0.7 per cent, which reflects the small improvements that have been seen in other economic indicators. Townsville’s proportion of profit-making sales continues to remain stable at 74 per cent since August last year.
Meanwhile, the profit-making sales figures for the Sunshine Coast show that 87 per cent of sellers in this region made a profit. These latest figures, combined with increased activity, plus buyer and seller confidence in the local market bode well for the future, and the signs are good that the local property market will continue to improve into the rest of 2015. Werchon tells MPP, “The market has been active and buyer confidence is strong, so much so that it’s the best we’ve seen in over 5 years in terms of numbers of sales.”
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By: Jemma Pearson
Tags: Apartment Living, business, CBD, development, maroochy boulevard, Maroochydore, Sunshine Cove, Sunshine Plaza, urban development, waterfront
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