South East Queensland’s phenomenal growth predicted to continue in 2022
According to the Real Estate Institute of Queensland (REIQ), median home prices rose 1.8 per cent from July to September 2021. Local government areas (LGAs) featuring tourism attractions and Greater Brisbane are popular among buyers, and growth in some regions remains strong despite market volatility.
The remarkable property price surge in Queensland, according to REIQ chief executive Antonia Mercorella, is the consequence of a variety of factors fuelling huge buyer demand.
“Queensland hasn’t experienced this sustained level of demand and accelerated growth before, but after years of modest growth, prices here are playing catch up,” Ms Mercorella said.
Brisbane had the most property sales during the quarter with 3,912 houses sold. Right behind were Gold Coast, with 2,419 houses sold, Moreton Bay at 1,945, Sunshine Coast SD at 1,510, Logan at 1,413, and Ipswich at 1,366, proving that lifestyle and city peripheral regions remain popular.
Ms Mercorella has attributed successful sales to the interstate migration: “With cashed up interstate buyers comfortable with auctions and able to snap up properties with competitive offers, it’s no wonder that interstate migration to Queensland is at an almost 20-year high, as southerners relocate here in droves.”
Median house prices
With the opening of borders, it is no surprise that median house prices grew to record-breaking numbers.
Brisbane’s median house price increased by 4.7 per cent in the third quarter to a new record of $900,000, an increase of 15.5 per cent over the previous year. And even with a 2.8 per cent quarterly increase to $640,000, Greater Brisbane remains affordable for individuals looking to dwell on the fringes of the capital city.
Noosa was the apparent standout in terms of growth during the quarter, with double-digit rise of 13 per cent, off the back of the 19.8 per cent growth it recorded in the June 2021 quarter.
Strong growth performances were also seen in Ipswich at 8.7 per cent, Redland and Fraser Coast, which both grew at 6.5 per cent, and Bundaberg at 6.4 per cent.
Noosa has scored a double win by recording the highest quarterly median sale price of $1.3 million, followed by $900,000 in Brisbane, $850,000 in Sunshine Coast SD (Statistical Division comprising of the Sunshine Coast LGA and Noosa Shire), $825,000 in Sunshine Coast, and $810,500 in Gold Coast.
Despite the revved-up house prices, it didn’t dampen the desire of buyers to snap up properties in Queensland, and the REIQ CEO explained why: “Even as our median prices rise, our state is still demonstrating greater bang-for-buck, with investors looking to make their real estate dollar go further, and southerners making the move keen to lap up our state’s incredible liveability factor.”
Not all of the Sunshine state experienced growth though, such as regional centres Rockhampton sliding down -3.2 per cent, Gladstone -5.6 per cent, and Townsville -0.1 per cent. Mackay, on the other hand, stayed still.
Nevertheless, these LGAs grew at a respectable rate over the past year, with Gladstone leading the way with a big jump to 15.7 per cent, a possible indication that its drop this quarter is a correction following three-quarters of high growth.
Median unit prices
Moving over to median unit price performance over the quarter, Queensland experienced an increase of 3.5 per cent.
Mackay made a strong comeback at 17.4 per cent double-digit growth (following swings up and down in previous quarters), Sunshine Coast at 12.1 per cent, and Sunshine Coast SD at 11.1 per cent all saw double-digit growth as well.
Not to be left behind are Cairns at 9.1 per cent, Logan at 8.7 per cent, and the Gold Coast at 6.3 per cent. Greater Brisbane’s median unit price increased moderately by 1.8 per cent to $420,000.
Unit prices were more volatile in some areas, with LGA median unit prices declining in Gladstone to -14.8 per cent, Rockhampton to -9.8 per cent, Bundaberg to -8 per cent, Noosa to -4 per cent, and Ipswich to -2 per cent for the September quarter.
It is worth noting that these LGAs experienced significant median unit growth in prior quarters, with Gladstone increasing 33.4 per cent and Bundaberg increasing 22.9 per cent in March 2021, respectively, Noosa increasing 17.4 per cent and Rockhampton increasing 14.6 per cent in the June 2021 quarter.
Owing to the popularity of coastal areas, it makes sense that the highest unit prices were in the coastal districts of Noosa ($850,000), Sunshine Coast SD ($600,000), Sunshine Coast ($560,000), and Gold Coast ($510,000).
“It’s not surprising that Queensland property is still extremely attractive, given our state’s enviable lifestyle coupled with a sense of safety and relative freedoms during the pandemic, and of course our comparatively great affordability compared to our southern city counterparts,” Ms Mercorella said.
Queensland property market stakeholders can expect the state to shine brighter, Ms Mercorella added, following the announcement that South East Queensland will host the 2032 Olympic and Paralympic Games, which will inevitably result in the acceleration of investment and timeframes for infrastructure.
In addition, Ms Mercorella highlighted the “low levels of stock, record low interest rates, high levels of consumer confidence and household savings, more flexible remote workplace arrangements than ever, and the fear of missing out, are all additional factors spurring on the rapid property price growth and are fundamental ingredients for a strong market as we head towards 2022.”
Weighing in on these growth factors, the REIQ CEO concluded: “While predicting what’s next is simply crystal ball gazing, the market is still going strong with 12-month growth averages indicating markets are rising right across the board. With interstate borders reopening and international border opening to come, chances are we could see a flurry of activity and an uptick in demand well into the new year.”