PROPERTY Residential
Queensland’s major regional centres shone brightest during the December quarter of 2010, according to the latest Real Estate Institute of Queensland (REIQ) median house price report. Mackay, Toowoomba, Bundaberg and Townsville all recorded median price growth and healthy sales numbers over the December quarter as buyers made a cautious return to the property market.
The majority of other centres, including south-east Queensland, posted steady results over the period. Prior to the floods in January, Brisbane’s market was holding its ground with a stable volume of sales and solid prices however the impact of the flood may take some months to be fully understood.
“Listings in flood-affected areas have obviously been most affected with agents in these areas reporting that many sellers have withdrawn their properties from the market even if they were not directly affected by the floods,” REIQ chairman Pamela Bennett said.
“Unfortunately the flood and cyclone crisis have really affected confidence levels across the board and lenders have also reportedly further tightened their finance criteria which is making it difficult for sales to occur.
“It important to remember as we move into this recovery phase that the vast majority of homes in Brisbane, Toowoomba and Cairns specifically were not affected by the recent natural disasters, and that the fundamentals that were in play at the end of 2010 remain.”
The second and third tier of home buyers remained the predominant buyer type across Queensland over the December quarter with many taking advantage of market conditions at the end of 2010 to upgrade their homes. First home buyers have also started to return to the market after sitting on the sidelines for the majority of last year.
“First-home buyers were noticeably absent from the market in 2010; however with prices steady and interest rates appearing to be on hold until the latter part of this year, it is hoped they will recognise the opportunities that currently exist,” REIQ managing director Dan Molloy said.
“The Queensland property market experienced an easing of property prices directly following the floods of 1974 but this had corrected itself within six to 12 months. Given that fewer properties were impacted this year, and our population base is also much larger, the REIQ does not expect the impact this time to be as pronounced or as prolonged as it was back then.”
