Hopes of re­cov­ery on the hori­zon

Daily Mercury - - PEOPLE | BABIES - An­to­ni­aMer­corella

REIQ’s June quar­ter data for the cen­tral/north re­gion of Queens­land, en­com­pass­ing Mackay, Rock­hamp­ton and Glad­stone, has de­liv­ered some rea­sons to be cau­tiously op­ti­mistic.

Mackay’s quar­terly re­sult was a strong show­ing, with the me­dian house price for res­i­den­tial prop­erty below 2400sq m, grow­ing by more than 7%.

This re­sult bears out the com­ments from lo­cal agents who have ar­gued that Mackay’s mar­ket is show­ing signs of sta­bil­is­ing.

While it’s too soon to move this mar­ket into re­cov­ery mode, we are cau­tiously op­ti­mistic that this growth is an in­di­ca­tion that the green shoots of re­cov­ery are not far away.

It is im­por­tant to also look at the mar­ket’s per­for­mance over the past 12 months, and here the mar­ket fell by 5.6%, to $320,000.

This is a sober­ing re­minder that one good quar­terly re­sult doesn’t re­pair a year of softer sales.

Rock­hamp­ton’s res­i­den­tial house mar­ket has be­come the most af­ford­able house mar­ket of all Queens­land’s ma­jor mar­kets. De­clin­ing de­mand has seen sales soften and the an­nual me­dian house price fall $270,500.

There is an op­por­tu­nity for first-home buy­ers to spot some great buy­ing op­por­tu­ni­ties here.

There is no doubt all lev­els of gov­ern­ment are fo­cused on de­liv­er­ing jobs to this re­gion and jobs will bring work­ers and de­mand for hous­ing.

Rock­hamp­ton’s va­cancy rate has fallen from 8.6% to 7.2%.

This is still a weak mar­ket but it is pos­si­ble that the fall­ing va­can­cies sig­nal peo­ple re­turn­ing to the re­gion.

Glad­stone has ex­pe­ri­enced sig­nif­i­cant chal­lenges in the wake of the min­ing down­turn, how­ever, there are rea­sons to be op­ti­mistic about the medium term out­look.

The quar­terly re­sult, like Mackay, showed growth in the me­dian house price, adding 2.6% to land at $292,500.

This re­sult, for prop­er­ties 2400sq m and smaller, is good news for the re­gion, how­ever, it is too early yet to call this a re­cov­ery.

Over the past 12 months the an­nual me­dian house price fell 15 per cent to $295,000.

Va­can­cies have come down from last year’s high of 10.2% in June 2016 to 6.5% in June 2017. This is a weak mar­ket and con­di­tions favour ten­ants.

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