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Queensland housing market smashes through $1 trillion value barrier

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THE value of Queensland’s housing market has smashed through the $1 trillion barrier for the first time in history.

ELIZABETH TILLEY
queensland

Aerial photograph of Brisbane. Picture supplied by Harcourts.Source:Supplied

THE value of Queensland’s housing market has smashed through the trillion dollar barrier for the first time in history.

The state’s residential property sector is now worth $1.004 trillion — hitting the milestone in September after hovering on or just below that level for months, according to exclusive figures provided to The Sunday-Mail by property research firm CoreLogic.

It’s been a rapid rise to the top, with the total value of Queensland’s housing market sitting at $910 billion only two years ago — that’s an increase of 10 per cent or more than $90 billion in just 24 months.

RELATED: Brisbane puts Sydney, Melbourne in the shade

queensland

The value of Queensland’s housing market has surpassed $1 trillion for the first time in history. Image: AAP/Darren England.Source:AAP

RiskWise Property Research chief executive Doron Peleg said the value of Queensland’s housing market surpassing $1 trillion was a gamechanger for the state.

“You cannot ignore a $1 trillion housing market,” Mr Peleg said.

“It makes Queensland the third major player, yet it often gets overlooked by policy makers. “This shows it is a big market with a huge impact on the economy.”

Mr Peleg said Queensland’s improving economy, housing affordability, a rise in interstate migration and increased optimism in the market were all driving the value of the state’s residential real estate sector.

queensland

RiskWise Property Research chief executive Doron Peleg.Source:Supplied

But he said it was important to remember the state had a two-speed housing market, with houses in the state’s southeast performing well but units still carrying some risk.

“Overall, due to the improved economy, increase in employment and population, $15 billion construction boom and the Advance Queensland Business Development Fund, Queensland is projected to deliver good long-term capital growth,” he said.

“However, proceed with caution when it comes to units and in some areas of Queensland, particularly mining towns.”

MORE: Coast tourist hotspot where bargains can be found

queensland

Queensland’s housing market is now worth $1.004 trillion. Image: AAP/Darren England.Source:AAP

Real Estate Institute of Queensland chief executive Antonia Mercorella said that while $1 trillion sounded like an “extraordinarily high figure”, there were a range of factors to consider.

Ms Mercorella said the number of homes in the state had also increased in the past two years — up 4 per cent from 1.2 million in September 2016 to 1.9 million in September 2018.

The state’s annual median house price to June 2018 grew 2.1 per cent to a median of $480,000, with 56,740 house sales.

And Queensland’s median unit price for the year held steady at $400,000.

“Interestingly, the value of the Queensland residential property market represents about 13.2 per cent of value of the Australian residential property market, however, the number of Queensland dwellings represents about 17.7 per cent of the Australian residential dwellings,” Ms Mercorella said.

“This demonstrates that Queensland is definitely more affordable than other states, such as NSW and Victoria wherein the contribution of the state dwellings is lower than the contribution of the value of the state residential market.”

queensland

REIQ chief executive Antonia Mercorella. Photo: Claudia Baxter.Source:News Corp Australia

In the past five years, Queensland house prices had increased 19.4 per cent and units around 11.4 per cent.

“Our growth rates are modest, but as we pass the $1 trillion mark, it’s clear that good value attracts savvy buyers and this will continue to deliver growth,” she said.

CoreLogic head of research Tim Lawless said the rise in the value of Queensland housing was a natural result of higher home values, particularly across the southeast corner of the state.

Mr Lawless said the addition of new housing stock to the market had also helped.

“According to ABS residential construction data, the twelve months to March 2018 saw another 45,200 dwellings complete construction, and overall residential construction activity was worth approximately $13.3 billion across the state over the year,” Mr Lawless said.

“Although the overall value of Queensland dwellings has risen over recent years, proportionally, the value of Queensland dwellings now comprise a slightly smaller share of the national dwelling value.”

queensland

CoreLogic head of research Tim Lawless.Source:News Limited

CoreLogic estimates the value of residential real estate in Australia to be $7.58 trillion.

Brisbane was the only mainland capital city to see home values grow last month, defying the national housing downturn hitting other states.

Home values increased 0.1 per cent while every other major capital city went backwards.

Annually Brisbane’s growth has hit 0.8 per cent — the highest of all state capitals — while both Sydney (-6.1 per cent) and Melbourne (-3.1 per cent) dropped into negative territory.

Mr Lawless said Brisbane was seeing a rise in buyer interest and home values, but was still significantly more affordable than Sydney and Melbourne.

queensland

Brisbane was the only mainland capital city to record home value growth in September, according to CoreLogic. Image: AAP/Darren England.Source:AAP

Units in Rochedale in Brisbane’s south have increased in price by an average of 36 per cent in the past year, while the median house price in Hamilton has grown nearly 27 per cent to hit $1.5 million.

Outside of the capital, the Sunshine Coast suburb of Minyama has seen a 45.8 per cent rise in its median house price in the past 12 months to $1.31 million.

Darren and Vanessa McGee bought a block of land in Hamilton three years ago and built their dream home on it.

House prices in the suburb have risen nearly 27 per cent in just the past 12 months.

The couple is now selling the property at 46 Royal Terrace “while it’s nice and shiny” to take advantage of the growth in home values.

“We like the whole Crosby Road area,” Mr McGee said.

“You’ve got the Allan Border Field across the road, coffee shops, Crosby Park … and it’s close for me because do most of our work in the city.”

queensland

This house at 46 Royal Tce, Hamilton, is for sale.Source:Supplied

Mr McGee, a local builder, said he was confident house prices in Brisbane would continue to rise.

“As long as interest rates aren’t going up and unemployment stays down, that normally means housing will be strong, and with all the people moving to the area, there’s not enough houses for them all,” he said.

“I think it’s a good time to sell and a good time to buy.”

Marketing agent Patrick McKinnon of Place – Ascot said he wasn’t surprised the value of the state’s housing market had reached new heights.

“I think it’s awesome,” Mr McKinnon said.

“We’ve got the population growth and we’re still affordable — that’s the best thing about this housing market.

“Even though Sydney and Melbourne are falling, it’s great for us because people want to move up here.”

queensland

Inside the house at 46 Royal Tce, Hamilton.Source:Supplied

Mr McKinnon said it was a good time to get into suburbs like Hamilton, which would benefit from the soon-to-be-completed Kingsford Smith Drive upgrade.

“All that blue chip real estate is looking at cranes at the moment, but in 12 months, it will grow again and people will start to enjoy what Hamilton was,” he said.

TOP 10 QLD SUBURBS WITH BIGGEST RISE IN MEDIAN HOME PRICE

Suburb Property Type Number of sales Median price Growth in 12 mths

1. Minyama House 60 $1.31m 45.8%

2. Rochedale Unit 74 $685,000 35.6%

3. Mooroobool Unit 41 $278,000 34.3%

4. Tallebudgera Valley House 36 $1.09m 32.1%

5. Park Ridge House 52 $620,000 31.1%

6. North Ward Unit 101 $320,000 29.3%

7. Hamilton House 61 $1.5m 26.7%

8. Hollywell House 54 $790,000 26.4%

9. Biloela House 49 $290,000 26.%

10. Marsden Unit 44 $343,900 25.7%

(Source: CoreLogic, based on suburbs where 30 or more sales were recorded in past year)

Originally published as Queensland housing market now worth trillions

Source: www.news.com.au

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Top 68 suburbs for growth in Queensland revealed

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Top 68 suburbs for growth in Queensland revealed

Top 68 suburbs for growth in Queensland revealed. New data has shown the top 68 suburbs in Queensland for capital growth over the last 12 months to June, with the number one spot reaching triple digits.

Top 68 suburbs for growth in Queensland revealed

Outlined in the Real Estate Institute of Queensland’s Queensland Market Monitor report, REIQ CEO Antonia Mercorella said despite the ‘doom and gloom’ of the property market, there are still locations that are seeing large gains in profitability.

“A total of 68 suburbs throughout Queensland have delivered double-digit growth over 12 months, which is a really strong result,” Ms Mercorella said.

“And there are many more suburbs delivering strong single-digit growth. It’s a great market to be in at the moment.”

While south-east Queensland saw a lot of attention, there were some high growth suburbs found in central and northern Queensland.

The area with the strongest growth was Blackwater, which saw a rise of 151 per cent growth, which Ms Mercorella attributed to the resurgence of coal prices.

Aside from Blackwater, 10 other suburbs saw growth over 20 percent. These included:

  • Spring Mountain with growth of 103.6 per cent;
  • Collinsville with growth of 46.2 per cent;
  • Minyama with growth of 45.8 per cent;
  • Hamilton with growth of 32.9 per cent;
  • Hollywell with growth of 30.5 per cent;
  • Miles with growth of 23.5 per cent;
  • Mount Coolum with growth of 21.9 per cent;
  • Dundowran beach with growth of 21.5 per cent;
  • Boonah with growth of 21.3 per cent; and
  • Idalia with growth of 21.3 per cent.

Ms Mercorella said the top 11 suburbs were indicative of steady growth across the state, but warned against calling it a ‘boom’.

“While we’re definitely seeing prices come back in western Queensland mining towns, such as Blackwater, these prices are still below their peak,” she said.

It’s unlikely we’ll see a return to pre-2013 prices in those areas anytime soon.”

South-east Queensland

While the top 11 suburbs show a spread of high growth suburbs through the state, 41 suburbs out of the 68 are located in the ever-popular south east corner of Queensland.

Of these, 15 suburbs were located in the Sunshine Coast region, with the highest growing being Minyama, which ranked fourth overall.

The Brisbane region also saw a large number of high performing suburbs at 13. Hamilton was the region’s best performer and fifth overall.

Next was Ipswich with six suburbs, then the Gold Coast with four, Moreton Bay with three, while Redland and Logan suburbs did not rank.

Regional Queensland

Outside of south east Queensland, 27 regional suburbs ranked on the list, with the Townsville region recording four suburbs. Its highest performer was Idalia, which ranked 11th overall.

Next were the Cairns and Gympie regions, both recording three suburbs each. Cairns’ top performer was Palm Cove, which ranked 26th overall, while Cooloola Cove was Gympie’s top performer, which ranked 42nd overall.

While only recording one suburb, the Whitsunday region’s Collinsville ranked third overall.

The Bundaberg and Toowoomba regions both recorded two top suburbs, while the Banana, Charters Towers, Fraser Coast, Gladstone, Isaac, Livingstone, Mackay, Rocky, Scenic Rim, Somerset and Western Downs regions all had one top suburb each

Top 68 suburbs for growth in Queensland revealed

Top 68 suburbs for growth in Queensland revealed

The top 68 suburbs which experienced double digit growth over the last year to June 2018, according to the REIQ, are:

RankSuburbMedian priceCapital growth over 12 months (as a percentage)
1Blackwater$94,250151.3%
2Spring Mountain$450,000103.6%
3Collinsville$95,00046.2%
4Minyama$1,310,00045.8%
5Hamilton$1,442,00032.9%
6Hollywell$810,00030.5%
7Miles$148,25023.5%
8Mount Coolum$670,00021.9%
9Dundowran Beach$607,00021.5%
10Boonah$324,50021.3%
11Idalia$485,00021.3%
12Rasmussen$347,50019.9%
13Yaroomba$749,00019.7%
14Biloela$272,75018.6%
15Burnett Heads$317,00018.1%
16Tivoli$295,00018.0%
17Cashmere$690,00018.0%
18Walloon$370,00016.7%
19Sunshine Beach$1,400,00016.7%
20Noosa Heads$1,070,00016.0%
21Hope Island$739,75015.7%
22Ripley$374,00015.4%
23Sandgate$705,00015.2%
24North Ward$575,00015.0%
25Paddington$1,150,00014.7%
26Palm Cove$606,00014.3%
27Charters Towers City$142,50014.0%
28Pelican Waters$761,00013.9%
29Cooee Bay$313,00013.8%
30Mount Ommaney$944,00013.7%
31Fernvale$357,50013.5%
32The Range$380,00013.4%
33Landsborough$432,50013.4%
34Sunnybank$832,50013.3%
35North Mackay$270,00013.2%
36Whitfield$540,00013.1%
37Graceville$932,50013.0%
38Hendra$1,100,00012.7%
39Shorncliffe$840,00012.4%
40Moranbah$185,00012.1%
41Coes Creek$442,50012.0%
42Cooloola Cove$317,50012.0%
43Battery Hill$578,00012.0%
44Seven Hills$940,00011.9%
45Nundah$755,00011.9%
46Monkland$240,00011.6%
47Bongaree$470,00011.6%
48Clifton Beach$557,50011.5%
49Maroochydore$639,00011.2%
50Twin Waters$823,00011.2%
51Cambooya$322,50011.2%
52Tewantin$572,50011.2%
53Coolum Beach$675,25011.2%
54Kedron$744,50011.1%
55Sunrise Beach$820,00011.0%
56Oakey$241,50011.0%
57D’aguilar$416,00010.9%
58Mountain Creek$610,00010.9%
59Flinders View$371,50010.9%
60Highland Park$570,00010.7%
61Rosewood$291,00010.7%
62Bulimba$1,300,00010.6%
63Kirkwood$353,50010.5%
64Woodgate$402,50010.3%
65Railway Estate$309,50010.1%
66Auchenflower$1,070,00010.0%
67Rainbow Beach$489,50010.0%
68Ormeau Hills$530,00010.0%

Top 68 suburbs for growth in Queensland revealed.

Source: smartpropertyinvestment.com.au

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Brisbane’s median home price deceptively low

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Brisbane’s median home price deceptively low

Brisbane’s median home price deceptively low

Brisbane’s median home price deceptively low. LATEST analysis shows Brisbane’s significantly more affordable median home price is deceptively low, given only three areas sit below the citywide median.

At $491,925, Brisbane’s median was over 40 per cent cheaper than Sydney ($833,876) and just over 25 per cent less than Melbourne ($655,044).

But when CoreLogic research analyst Cameron Kusher broke it down in zones around the capital, the data told a different story.

“While that ($491,925 is substantially lower than Sydney and Melbourne you can see that all of the regions relatively close to the city have current median values which are higher than that,” he said.

“The most expensive region of the city is the West ($659,554) while the most affordable is Ipswich ($350,511).

“Only three SA4 regions of the city actually have a median value which is lower than the citywide median.”

Brisbane’s median home price deceptively low

The cafe lifestyle in inner-city New Farm is part of the reason that median prices there are definitely above the citywide average. Picture: Annette Dew.Source:News Corp Australia

Those three SA4 regions of Greater Brisbane were Ipswich with a median property value of $350,511, Logan-Beaudesert on $387,401 and Moreton Bay — North on $413,962.

All the rest had medians that were above the official median Brisbane dwelling led by Brisbane West where the median of $659,554 was higher than that of Melbourne.

Brisbane South’s median was $639,457, followed by Brisbane Inner City $584,539), North ($549,231), East ($548,746) and Moreton Bay — South $501,509.

The closer you are to desirable attributes such as the river, the higher prices tended to go, according to the analysis.

“Desirable areas close to the city centre typically have much more expensive housing costs than the broad capital city median,” Mr Kusher said.

“Although it is clichéd, location, location, location holds true and purchasers still pay a significant premium for well-located properties.”

Mr Kusher said the data gave “a more granular insight into how median values in each city compare to smaller regions across each city”.

Buyers were well advised to look at markets closer “as housing costs or the housing market performance can be vastly different when you look at different areas of a city”.

Source: news.com.au

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Regional suburbs record double digit capital growth

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Regional suburbs record double digit capital growth

Regional suburbs record double digit capital growth

Regional suburbs record double digit capital growth. TOWNSVILLE has emerged as a star performer in regional Queensland, with four suburbs recording double digit growth.

REIQ has revealed the 68 suburbs that recorded double digit growth in the 12 months to June.

Twenty-seven of those 68 top performing suburbs were outside of the southeast, with Townsville dominating the regional listings.

REIQ CEO Antonia Mercorella said Idalia (+21.3% to $485,00 as of June) was a rapidly expanding suburb, located just 10 minutes from the Townsville CBD, and offering access to shopping centres, restaurants, beautiful landscaping around parks, lakes and the Ross River.

It is dominated by older houses and luxury new homes, with properties ranging from the “low to mid $300,000s” to over $1 million.

 

Regional suburbs record double digit capital growth

REIQ CEO Antonia Mercorella

 

“Idalia in Townsville ranks 11th on the state list and first on the Townsville LGA list,” she said.

The other Townsville suburbs to make the top 68 were Rasmussen (+19.9), North Ward (+15%) and Railway Estate (+10.1%).

Keyes and Co Property agent, and former Townsville City councillor, Tony Parsons, said there were suburbs doing well, and others that were still struggling, but there were positive signs in the local property market.

Regional suburbs record double digit capital growth

Regional suburbs record double digit capital growth

This four bedroom house at 47 Springside Terrace in Idalia is on the market for $868,000 and is listed with Keyes & Co

He said Idalia ticked a lot of boxes for families, but he was not surprised by the city’s other top suburbs with two of them “fringe suburbs” of the new stadium under construction.

Regional suburbs record double digit capital growth

North Queensland Stadium under construction in September 2018 Townsville

“North Ward and its proximity to The Strand speaks for itself, and Railway Estate has some of that character housing stock that many couples are keen on, those reno jobs.”

As for Rasmussen, the suburb has benefited from a number of new housing estates including a Defence Housing Australia development, and the duplication of Riverway Drive.

Mr Parsons said buyers could still get a bargain.

Regional suburbs record double digit capital growth

Australian hydrofoil championships off The Strand, Townsville.

Meanwhile, Cairns and Gympie had three suburbs on the list of top performers.

Palm Cove was the best performer in Cairns, ranking 26th overall.

Cooloola Cove in Gympie ranked 42nd, with house prices up 12 per cent to $317,500 in June 2018.

In the Whitsundays region, only Collinsville, a coal town southwest of Bowen, made the list, taking out third spot overall.

Ms Mercorella said Collinsville recorded an annual capital growth for houses of 46.2 per cent, taking the median sales price to $95,000 in June.

Other regions reporting at least one suburb on the list were Bundaberg, Toowoomba, Banana, Charters Towers, Fraser Coast, Gladstone, Isaac, Livingstone, Mackay, Rocky, Scenic Rim, Somerset and Western Downs.

“This spread of suburbs is a good indication that Queensland real estate is delivering steady sustainable growth across the board. We’re seeing growth outside the southeast corner,” Ms Mercorella said.

In terms of price, the REIQ analysis found that two very different brackets dominated the list — below $350,000 and above $500,000 but below $750,000.

“Eighteen top performing suburbs reported a median house price range below $350,000,” Ms Mercorella said.

“Most of these suburbs are located in regional Queensland.”

Similarly, 18 top performers reported an annual median house price range between $500,000 and $749,999 … 13 of these suburbs are located in the southeast corner.

“Only 8 top performing suburbs reported an annual median price range above $1 million. All these suburbs are located in Brisbane, Noosa or the Sunshine Coast LGA.”

Regional suburbs record double digit capital growth

TOP 10 PERFORMING REGIONAL QUEENSLAND SUBURBS, RANKING/1 YR CAPITAL GROWTH

Blackwater (1st) +151.3%

Collinsville (3rd) + 46.2%

Miles (7th) +23.5%

Dundowran Beach (9th) +21.5%

Idalia (11th) +21.3%

Rasmussen (12th) +19.9%

Biloela (14th) +18.6%

Burnett Heads (15th) +18.1%

North Ward (24th) +15%

Palm Cove (26th) +14.3%

(Source: REIQ QMM report June 2018. )

Source: sunshinecoastdaily.com.au

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