SUNNY STATE IS BOUNCING BACK
Home prices rose in more Queensland suburbs than they fell in the first three months of the year, with some rebounding by up to 27 per cent, exclusive new figures reveal.
In the March quarter alone, house and unit prices grew in 582 suburbs, led by the neighbouring suburbs of Acacia Ridge and Sunnybank in Brisbane’s south, where the median unit price climbed more than 24 per cent.
Industry analysts say a lack of supply of both homes for sale and rent, combined with good fundamentals and migration, is keeping the Queensland market afloat – but that could change later this year when the lag effect of interest rate rises starts to bite.
The rural towns of Alpha and Proston were the best-performing locations for house price gains in the state during the March quarter, with gains of 22 per cent.
The median house price in the Brisbane suburb of Hamilton jumped more than 12 per cent to a staggering $2.56m, with a homethere recently selling for $7.3m.
There were similar gains in Townsville City in North Queensland, where the median house price is now $668,042.
But there were also some decent falls in parts of the state, with 531 suburbs recording price declines during the quarter, led by Russell Island, where the median house price dived nearly 24 per cent to just $194,299 – making it Brisbane’s cheapest suburb.
Unit prices in Tewantin in Noosa Shire dropped 13 per cent, while the median unit price in the seaside Moreton Bay suburb of Scarborough slipped almost 12 per cent.
Brisbane’s median home price rose 0.2 per cent in the three months to the end of March to $712,000 – only 2.65 per cent lower than 12 months ago, and 42.6 per cent higher than before the Covid-19 pandemic.
Proptrack economist Angus Moore said the relatively even split between the number of Queensland suburbs where home prices had risen and fallen during the March quarter was consistent with the overall flat price growth across the state.
“We are still seeing a lot of de
mand for Brisbane relative to other parts of the country, I think because it’s still a bit more affordable compared to Sydney and Melbourne,” he said.
“Over the past year, regional Queensland prices have also basically been flat, driven by relative affordability, which makes it attractive to some buyers.”
Herron Todd White director David Notley said the Brisbane market was a mixed bag, with prices in the prestige sector and for inner-city properties holding firm, but discounting was starting to happen in the outer suburbs and rural residential areas.
“We haven’t seen anything greater than 10 per cent (price falls),” Mr Notley said. “It’s a ripple effect – when a market softens, it starts from out and works its way in.”
Mr Notley said a lack of supply of properties to buy and rent, combined with interstate and overseas migration, was helping to support the Brisbane market’s fundamentals.
The rise in apartment prices in certain suburbs was being driven by affordability and soaring rents, Mr Notley said.
“While you might have had a bucket list with a house and a block of land, that’s unachieveable for a lot of buyers now, particularly if you have an inner-city location in mind,” he said.
“We’re not seeing a lot of investors generally in the market due to the current environment, but owner-occupiers are really driving a lot of those apartment sales because they simply have nowhere to live.”
Brisbane’s inner-city market was the best-performing region across the city during the March quarter, with the median house price gaining 0.66 per cent to $1.56m and the median unit price up 0.7 per cent to $$611,002.
Inner-city apartment projects are recording strong off-theplan sales and record square metre rates. The penthouse in a new project by Graya in the inner suburb of Bulimba has just sold for $3.5m, with construction due to finish late this year.
“Local right-sizers and downsizers already account for more than 70 per cent of purchasers at Canvas, with only two developer-held apartments remaining for release,” Graya managing director Rob Gray said.
Hamish Bowman, of Hamish Bowman Properties, has just sold a New Farm apartment for $1m more than it fetched off the plan in 2020.
The full-floor apartment sold for $4.5m and is the first resale in the building at 160 Oxlade Drive.
“The prestige market’s holding up pretty well,” Mr Bowman said.
“What I’m seeing is pretty much the same model that ran during the GFC when everyone had bought the beach unit, the boat, the ute and all the toys and then had to sell them.
“It’s that mortgage belt that’s tightened right up – those who borrowed $1m to $2m.”
On an annual basis, home prices climbed by up to 33 per cent in 625 suburbs across the state in the year to the end of March 2023, led by units in Highgate Hill, which jumped 33.4 per cent.
They fell as much as 21 per cent in 518 suburbs over the past 12 months, with the biggest falls recorded for house prices in
Rocklea, Moorooka and Chermside, and Tewantin for units.
The Gold Coast was one of the best-performing regions in the country during the March quarter, with the median home price now sitting at $827,000.
“We’ve seen a bounce in prices on the Gold Coast – one of the most significant bounces on a quarterly basis – up 2.51 per cent for all homes,” Proptrack senior economist Eleanor Creagh said. “If the RBA does pause this month or next, it’s possible the bounce will firm and values will continue to stabilise.”
The median house price on the Gold Coast is just over $1m, while the median unit price is now $660,000.