PROPERTY NEWS
Queensland is well placed to again benefit from the up-turn in the world economy when it inevitably takes place, according to the Real Estate Institute of Queensland (REIQ). The REIQ September quarter median house report provides another indicator that the fundamentals of Queensland’s economy are continuing to help absorb the negative impacts from the Global Financial Crisis.
Over the September quarter, median house prices and preliminary sales numbers across the state held relatively steady, even as the market and the wider economy came to grips with six almost consecutive interest rates increases, and the uncertainty surrounding the Federal Election in August and its prolonged aftermath into September.
Agents are reporting tough market conditions partly due to a lack of committed buyers. Sellers, therefore, are being more realistic about their price expectations which mean significant buying opportunities currently exist.
“While it remains difficult to decipher the various indicators to understand where the economy generally is heading, these September quarter results should provide some reassurance that investing in the Queensland property market remains sound,” REIQ chairman Pamela Bennett said.
According to the REIQ, buyers and sellers should remain confident given Queensland’s population continues to grow by more than the national average and billions of dollars-worth of infrastructure is currently being constructed or in the pipe-line. In the years ahead, the state is also on track to benefit from our multibillion-dollar resources industry.
“There has been very mixed messages about the state of Australia’s residential property market of late,” REIQ managing director Dan Molloy said. “There has been continued speculation about a perceived housing bubble, but the facts are clear – housing prices are not out of control, comparisons with the US market are largely irrelevant and there is little speculative activity in the market.
“While no one is under any illusion that the Queensland economy has turned a corner just yet, the fundamentals of the state’s economy ensure that our part of the world is well-placed for growth in the years ahead.”
Despite the softer market conditions, there are ample opportunities for people to upgrade by buying and selling in the same market.
The strength of the resources industry, including recent announcements of multibillion-dollar mining projects, has helped Gladstone and Toowoomba perform particularly well over the September quarter. The median house price in Gladstone increased 5.9 per cent to $392,000 over the period, while Toowoomba’s median house price increased 1.4 per cent to $289,000.
