Median house prices rise across the state
The property market in the Sunshine State remained robust during the September quarter, according to data from the Real Estate Institute of Queensland.
Median house prices across the state increased by 2.07% to reach a median of $690,000, while median unit prices rose by 3.92% to a median of $530,000, REIQ reported.
Antonia Mercorella, CEO of REIQ, said that Queensland's property market has consistently performed well and continues to be an attractive option for buyers. She noted that unit price growth is picking up as buyers adjust their expectations and view units as stepping stones into the housing market.
“It’s not surprising that units are gaining popularity due to their relatively affordable price point, when budget conscious buyers are wary of rising interest rates and cost of living,” Mercorella said. “When once upon a time you could find more affordable freestanding houses to buy around the half-a-million dollar-mark with a reasonable commute to the city, we’re now hearing that first home buyers are turning to apartments and units instead.”
Mercorella said that units are gaining popularity especially in Greater Brisbane, where the unit market is showing strength and growth. Logan's unit market, in particular, stood out with a 9.17% growth over the quarter and an impressive 11.11% growth over the year, reaching a median price of $350,000.
Housing market
Interest in regional housing markets in Queensland is also on the rise, driven by their affordability and attractive annual growth rates. Toowoomba and Townsville, in particular, offer value for money, with median house prices of $530,000 and just over $400,000, respectively, well below Greater Brisbane's median price point of $760,500.
However, the shortage of sales listings has become a challenge in the Sunshine State, REIQ reported.
“The biggest challenge at the moment is people’s reluctance to sell and make the jump to their next property,” Mercorella said. “Real estate agents are telling us that people do want to sell their properties, but they’re also held back by concerns about what they are going to be able to buy back into in such a tight market – so it’s a frustrating situation for so many.”
While there have been some small dips in prices over the quarter and slight retreats in year-on-year comparisons, it is important to consider that the market is returning to a more consistent and stable state after reaching record-setting highs. Expectations may need to be managed for both sellers and buyers, REIQ said. Sellers may need to adjust their expectations from the previous highs, while buyers hoping for bargains may be disappointed due to the limited stock and intense competition.
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Factors such as interstate migration and a tight job market are supporting the housing market in Queensland. The state's property market has proven to be a reliable and consistent player, and steady growth is expected as the new year approaches.
In terms of the housing market, Brisbane, Gold Coast, and Moreton Bay recorded the highest volume of house sales during the quarter. Noosa maintained its position as the most expensive housing market in Queensland, with a median price of $1.378 million. Other areas with seven-figure medians included Brisbane LGA and the Gold Coast, while Rockhampton and Gladstone represented the more affordable end of the scale.
The strongest performers in terms of quarterly growth were Noosa, Toowoomba, and Ipswich, showcasing the best of Queensland's lifestyle, regional, and city outskirts. Rockhampton, Bundaberg, and Gold Coast's housing markets remained relatively stable over the quarter.
Looking at annual growth, Rockhampton, Bundaberg, and Toowoomba experienced double-digit growth, while Fraser Coast and Cairns also recorded impressive annual growth rates, according to REIQ. Brisbane, Sunshine Coast, and Noosa saw slight decreases in prices compared to the previous year, but these adjustments are considered course corrections after reaching record highs.
The median days on the market for houses remained consistent at 28 days statewide, with Noosa having the longest days on the market at 59 days. Toowoomba, Ipswich, Logan, and Townsville were the fastest-moving markets, with listings being signed within 18 to 24 days.
Unit market
In the unit market, Brisbane and the Gold Coast recorded the highest number of quarterly sales. Noosa maintained its position as the most expensive unit market in Queensland, with a median price of $1.04 million. Gladstone and Mackay represented the most affordable unit markets.
Rockhampton's unit market experienced significant growth of 19.21% over the quarter, albeit based on a small number of listings. Logan, Mackay, Toowoomba, and the Sunshine Coast also performed well in terms of quarterly growth. Fraser Coast and Bundaberg saw slight decreases in prices over the quarter but still showed strong year-on-year growth.
Overall, the uptick in unit price growth across the state indicates a shift in focus as buyers seek more affordable options, REIQ reported. Units are becoming increasingly attractive due to their relatively lower price point compared to houses.
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