February 19, 2019 | 02:30 AM

Property & Home

06.07.2018Focus on Queensland: Property market round-up

Queensland is one of Australia?s most beautiful states, which means it?s no surprise that the demand to live here is high.

Queensland is one of Australia’s most beautiful states, which means it’s no surprise that the demand to live here is high. The state’s economy might center on its capital and largest city, Brisbane, but it also has several bustling regional areas like the Gold Coast, too. With the forces of the property market at work in every town and city across the state, there’s a lot to consider when it comes to property.

In recent months, the Sunshine State has begun to buck the national trend – and it is Queensland’s housing market performance that’s starting to show an upswing. This blog post will explore exactly what the trends in the Queensland housing market are and what they mean for sellers and buyers in the region.

Compared to the country

When it comes to Queensland’s performance against the rest of Australia, the picture is mixed. Just under half of the state’s population live in Brisbane, and this is a city that has performed very well compared to its counterparts in other states. One firm, SQM Research, recently predicted that Brisbane will see anything up to a 3% rise in revenues, which is an outstanding performance compared to the other capitals, such as Sydney (which will see a 4% maximum fall) and Melbourne (which is in line for a 3% drop).

In terms of the wider state, Queensland performs in an average way against the rest of the country: while some areas saw year-on-year price growth between 2016 and 2017 (like Mackay with a 4% rise), Queensland’s regional areas were outperformed by the equivalent rates of 7% or higher in some parts of Victoria and New South Wales. 

Property hotspots

Narrowing the comparison down to Queensland itself, there are some significant strong performers. As is the case in any state, some places are always going to outperform others and that certainly holds true for Queensland. In Brisbane, prices are in line for a rise – although this is not true throughout the entire city.

A recent study by the Real Estate Institute of Queensland (REIQ) showed that some of the city’s upper-end suburbs, such as Kelvin Grove and Highgate Hill, have experienced big price drops. In Milton, meanwhile, the median home sale price plummeted by an annual rate of 11.4% in 2017, so while the headline stats are positive, only certain parts of the state are reaping the benefits.

Construction of new homes

When it comes to home sales, the focus is often placed on the demand side of the equation. Or, in other words, how many people want to buy a new place. However, there’s another side of the calculation to consider as well, and that’s how much supply there is. Supply for the housing market can take two forms: it’s all down to how many people want to sell and how much construction of new homes there is.

Even though the headline statistics in Queensland show that people are selling often enough to create at least relatively buoyant growth, there’s evidence that the rate of housebuilding is slowing down. A report from professional services firm Deloitte shows that, in 2017, the construction of new homes decreased in frequency, especially compared to 2016.

The Sunshine State is undoubtedly a desirable place to live. Sitting in a comfortable middle ground between the intensity of the most bustling Australian regions and the more remote areas of the nation, Queensland is in an enviable position. And the market evidence, in part, bears this out. But some areas of the state aren’t experiencing the same upsides as others, which suggests that Queensland has more work to do before it can become the ideal Australian property investment destination.

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