RESIDENTIAL PROPERTY
Queensland suburbs close to the CBD are the first to show signs of significant price recovery in the housing sector, new research reveals.
The top 10 suburbs in Queensland which recorded the highest price growth in the 12 months to March have been identified by PRDnationwide research.
PRDnationwide managing director Jim Midgley said eight out of Queensland’s top 10 growth suburbs were located within 17km of the Brisbane CBD. “Topping the list for best price growth was Ascot in Brisbane’s north – registering an astonishing 64.1 per cent increase,” he said.
Report author, PRDnationwide research analyst Josh Brown (pictured below)said St Lucia recorded the second highest price growth of 59.6 per cent, followed by Hawthorne (34.6 per cent).
“The most affordable median price in the top 10 was $335,000 recorded in Mareeba, 30km west of Cairns, despite a 12 month growth of 34 per cent,” Mr Brown said. An overall trend had emerged of strong growth in Brisbane’s prestigious suburbs, with six out of the top ten recording median greater than $750,000.
“Unfortunately this growth represents a recovery in markets which experienced significant softenings during the economic downturn which unfolded during 2008,” he said.
“In general, these growth rates are too strong to be real price growth recorded within such close proximity to the Brisbane CBD under current market conditions. “Instead, they are a reflection of the composition of stock being transacted.
“When you look at the real impact the Global Financial Crisis had on Brisbane’s property market, we saw the top-end markets stall while more affordable price points saw a lot of activity which pushed median prices in these suburbs down.
Currently, activity within the high to premium price points has strengthened on the back of historically low interest rates and strong consumer sentiment and business confidence. The unit market was also investigated by PRDnationwide.
“Of the top 10 suburbs for median price growth in units, four were located within 17.5 kilometres of the Brisbane CBD,” Mr Brown said.
These suburbs were Wooloowin, Woodridge, East Brisbane and Albion which all recorded growth rates between 16.7 per cent and 21.4 per cent. The clear performers over the six months to March 2010 were East Toowoomba, Woody Point and Westcourt. These suburbs all recorded staggering growth rates of 94.5 per cent, 71.2 per cent and 60.4 per cent respectively.
“The most affordable median price was recorded in Woodridge with $231,000 resulting from a strong growth of 18.5 per cent,” Mr Brown said.
“It must be noted that these sharp increases in median price can be influenced by the release of new product onto the market. However given that, with the exception of Woody Point, sales activity has not changed significantly from the corresponding period 12 months earlier, it is likely that these suburbs are reflecting a change in the dominant players in the market.”
