House prices hold their ground: REIQ

PROPERTY NEWS

Queensland home buyers retreated from the property market in the June quarter as they waited for the return of stamp duty concessions but house prices held their ground, according to the latest Real Estate Institute of Queensland (REIQ) data.


The REIQ June quarter median house price report shows house prices remaining steady in the face of lower sales activity across the State.
REIQ CEO Anton Kardash said there was a noticeable slow-down in activity from May to June.
“The State Government introduced legislation into parliament in mid-May to reinstate the Principal Place of Residence concession on stamp duty from 1 July this year,” he said. “The return of the concession meant home buyers, who were not first-timers or investors, could save up to $7000 from 1 July, so it is little wonder that many decided to delay their purchases until after that date.
“Even though sales activity was lower in the month of June in particular, our June quarter data found no significant variations on median prices which means our market is still holding up well. The four rate cuts since November are also starting to have a positive effect on the market.”
According to the Australian Bureau of Statistics, the number of homes financed to non-first home buyers in Queensland decreased 12.8 per cent between May and June this year. The median house price in Brisbane decreased 1 per cent to an even $500,000 over the June quarter.
The top performing major region over the June quarter was Moreton Bay which recorded median house price growth of 5.3 per cent to $379,000. Moreton Bay, which is part of Greater Brisbane, has a variety of more affordable suburbs which are still within commuting distance of the CBD. Its location and supply of affordable housing is therefore attractive to first home buyers and investors.
Outside of the state’s south-east, Townsville recorded median house price growth of 4.2 per cent to $375,000 over the June quarter. Townsville’s economy continues to fair well due its mix of industries.
“Townsville is in the enviable position of having a number of different industries to underpin its economy,” REIQ chairman Pamela Bennett said.
“Therefore, unlike other regional areas it is not reliant on one particular industry, which is why its economy has continued to perform solidly. Also as Townsville is a garrison city, sales activity from defence force personnel continues to provide some added buoyancy to its property market.”
Median house price growth appears to have plateaued in Gladstone for the second consecutive quarter however the region still posted an increase of 14.6 per cent over the year ending June.
Toowoomba posted its second quarter of positive results with its median house price increasing 3.8 per cent to $299,000.
Mr Kardash said the fundamentals of the Queensland property market remained positive however it was important to remember that real estate was predominantly a confidence industry.
“We had improving confidence levels at the start of the June quarter, but the continued economic uncertainty here and overseas has had an impact on confidence levels generally,” he said.
“We believe the market will eventually start to hit its stride in a more vigorous manner due to pent-up demand, population growth and the ongoing mining boom putting pressure on the real estate market.
“But this may take longer than we originally believed because of the ongoing uncertainty about our State’s finances. Once this has been addressed, we should see the gates of confidence open once more.