Good news on the horizon
REIQ’s outlook for Queensland’s housing market is optimistic and the unit market will rebound
LOOKING back over 2016, it has been patchy but one trend has clearly emerged – in almost every market throughout Queensland units have fallen out of favour.
The south-east corner continued its positive growth with the Sunshine Coast and the Gold Coast both stand-out performers, adding more than 5% each to their residential median house prices.
However, despite these twin growth pockets, housing remains firmly in the affordable range.
Brisbane city’s median house price reached a new high, adding 4% over the year, to end on $655,000. This is steady, sustainable growth.
The regional markets continued to struggle and the oft-used term “two-speed housing market” continues to apply to Queensland’s residential housing markets.
The mining resources downturn has impacted heavily in towns such as Gladstone, Mackay, Rockhampton and Townsville, where growth has been minimal.
Toowoomba has been the consistent performer in recent years, however, it finished
❝The
regional markets continued to struggle and the oft-used term ‘two-speed housing market’ continues to apply to Queensland’s residential housing markets.
2016 around the same level it started, which indicates demand has been sated in this market.
The unit markets throughout the state have slid in value and supply is now slowing significantly, which bodes well for the rest of 2017.
In Brisbane, between a quarter and a third of new projects slated to start in 2018 have been suspended until the market firms up, or have been on-sold by developers.
In regional Queensland, where the unit markets are already quite small, demand has further reduced the number of sales and in some areas there have not been enough sales to reach a meaningful conclusion.
However, there is good news on the horizon, and the rallying coal price combined with news of mines hiring again along with the potential start of the Adani mine, mean the economy could strengthen and jobs will drive demand for housing.
The REIQ’s outlook for Queensland’s housing market is optimistic and the unit market will rebound.
We know that our population growth is still in positive territory and demand will continue to grow as more and more people want to live within close proximity of work and entertainment precincts.
Apartment living is becoming a way of life for metropolitan Australians and Queensland is no exception.