PROPERTY NEWS
Two years on from the beginning of the Global Financial Crisis, Queensland’s residential property market has ridden the wave of economic uncertainty and come out the other side with prices now back at pre-crisis levels.
However, the Real Estate Institute of Queensland’s (REIQ) June quarter median house report shows continued tough market conditions with the preliminary number of sales across the state down by about five per cent compared to the previous quarter. Most areas of the state recorded minimal median house price changes over the period.
“These results reflect the weaker market conditions reported by REIQ accredited agencies over the June quarter,” REIQ chairman Pamela Bennett said.
“Agents have been reporting quieter market conditions since about early April when the string of interest rate increases began to have a negative impact on the market. Uneven economic data is also starting to worry consumers with many buyers currently happy to sit on the fence until a clearer economic picture emerges.”
While sales activity is currently subdued compared to last year, the REIQ June quarter report found property prices in most areas of the state are now on par with what they were two years ago.
“Over the past two years, Queensland’s median house prices have jumped up and down depending on the types of buyers in the market at the time,” REIQ managing director Dan Molloy said.
“Last year, the numbers of first-timers in the market was higher than usual, so correspondingly the median went down given they bought cheaper properties. This year, there has been a return to a more even distribution of first and non-first home buyers in the market so the medians have increased accordingly.
“This change in buyers, and the types of properties selling, has unfortunately given the false impression there has been robust property price growth when prices are now really where they were two years ago.”
Brisbane’s continued population growth has underpinned the capital city’s performance over the past two years with its median house price increasing about 9 per cent to $530,000 for the year ending June 2010.
Other major areas of the state recorded median house prices that were very similar for the year ending June 2010 as they were two years before.
According to the REIQ, while current market conditions can be described as difficult, Queensland’s population growth, decentralised population, and relatively affordable property compared to other states will help to underpin the market in the months ahead.
With inflation now under control and the Reserve Bank indicating it will keep interest rates on hold for the time being, demand may return to more usual levels by the end of 2010.
