Brisbane, the Sunshine Coast, and the Gold Coast all posted record annual median house prices in the September quarter, proving early predictions of gloom wrong.
According to the Real Estate Institute Queensland (REIQ) market monitor report, the Brisbane annual median house price climbed 2.3% to a new high of $675,000. The Gold Coast rose 3.8% to $629,000, and the Sunshine Coast SD, including Sunny Coast LGA and Noosa Shire, increased by 6.3% growth to a new high of $595,000.
REIQ CEO Antonia Mercorella said that the robust growth implied that Queensland real estate was an ideal investment and could drive capital growth.
“While other markets around the country are struggling in the face of tightened lending criteria and cooling investor appetite, the southeast corner of Queensland continues to deliver steady, sustainable growth,” Mercorella said.
Mercorella added that the state’s economy is generating positive results amid a “national gloom.” Additionally, new jobs are available and are contributing to population growth and demand for housing.
“The southeast corner is our powerhouse, without a doubt, but additionally we’re seeing strong results in regions that have been struggling,” she said. “The resources sector is improving, and we’re seeing regions such as Mackay and areas of western Queensland firmly in recovery.”
The state’s unit market, on the other hand, tracked downward while grappling with oversupply issues.
Brisbane LGA’s annual median unit price slid 2.2% to $440,000. In turn, the market is now only 5.5% stronger than it was in 2013.
The Gold Coast unit market, which is the biggest unit market in the state, saw its annual median unit price drop by 1.6% to $425,000. The city records over 10,000 sales per year.
“This is the first time we’ve been clear in the post-Comms Game period, and it’s encouraging to see that the market is bubbling along. The house market has delivered good growth and the unit market is still absorbing some small oversupply, but on the whole (we’re) remaining optimistic for this market,” Mercorella said.
The Sunshine Coast SD’s annual median unit price was up 3.1% to $430,000. Noosa, a resort area, was identified as the new strongest-performing house and unit market in the area for the 12 months to September 2018. The Noosa median house price rose 8.7% to $715,000, while the median unit price spiked 12.2% to a new record price of $550,000.
“This market has roared up to the top of the table and completely smashed the growth trends,” Mercorella said. “The demand for living in Noosa, either in a house or unit, seems to be almost insatiable.”
