Queensland poised for strong capital growth
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Jan 17, 2019
Queensland poised for strong capital growth
The Sunshine State is set to enjoy a year of consistent home value rises, as the market continues defying national trends of falling house prices.
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Tom Offerman Noosa HeadsPictured: 15 Wild Apple Court, Noosa Heads. Sold by Michelle van der Splinter of Tom Offerman Noosa Heads. As seen on Luxury List.
Owner-occupiers in Queensland are well positioned to enjoy steady demand growth thanks to the rising population, improving employment rates, and better lending conditions.
Real Estate Institute of Queensland CEO Antonia Mercorella says Queensland's property markets are in an "enviable position".
“Our housing market has proven to be resilient to the headwinds that have slowed the Sydney and Melbourne markets so drastically," she told WILLIAMS MEDIA.
The December quarter saw strong rates of growth across Queensland, particularly the Greater Brisbane area which grew by 2.3 per cent to $525,000.
“The Sunshine Coast stormed home at the end of last year with 6.3 per cent growth in median house prices. This is extraordinary growth and testament to the enviable lifestyle on offer in this highly desirable part of the world,” Ms Mercorella said.
Listings are down and building approvals continue to slide, indicating a limited supply in the pipeline. Ms Mercorella says these factors will combine to contribute to upward pressure on prices unless more stock comes onto the market in 2019.
Sunny outlook for apartment market
After an oversupply, it appears the apartment glut is slowing down.
“Apartment supply has slowed significantly, with only around 5000 apartments due for completion this year, compared with almost 11,000 just a couple of years ago. This means demand will continue to rise and will contribute to meaningful price growth,” Ms Mercorella said.
“We are increasingly embracing apartment living and so it makes sense that this sector of the market is poised for strong growth in 2019,” she said.
Census data from 2016 reveals over 228,243 families live in an apartment, unit, or townhouse, up by 10.2 per cent from 2011. An estimated 6.3 per cent of families live in apartments.
The data also shows that over the past decade, interstate migration to Queensland grew by 11,000 a year on average.
That comes as no surprise to Ms Mercorella.
"Queensland offers undeniable affordability and a fantastic climate and this is why our population is growing as residents from the southern states opt for a better lifestyle here,” Ms Mercorella said.
“Anecdotal evidence from our agents suggests that we are seeing property buyers moving here from interstate, lured by the greater bang-for-buck proposition that is presented by our real estate,” Ms Mercorella said.
It's something that local agent Jodie Hedley-Ward of McGrath Caloundra can attest to.
"The sunshine is a huge drawcard of course, but the quality of life and the value for money on offer is hard to beat," she told WILLIAMS MEDIA.
"I think the Sunshine Coast is set to be one of the most resilient and desirable markets nationally in the coming 12-18 months and we are seeing that already by the number of buyers relocating from NSW and VIC in particular right now," Ms Hedley-Ward added.
"Confidence at lowest level"
Despite the sunny outlook, the latest quarterly ANZ/Property Council Survey reveals a drop in consumer sentiment to 118 index points for the March 2019 quarter - lower than any other jurisdiction.
Chris Mountford, Property Council Queensland Executive Director says the drop in confidence can be attributed to concerns around debt availability.
“Confidence has seen a significant decline over the past two quarters, sliding back by 22 index points. The fall in sentiment can largely be attributed to concerns over a tightening of finance availability.”
Ms Mercorella says the results aren't surprising thanks to the looming federal election.
Related reading:
Southeast Queensland suburbs among best in state for price growth
Brisbane property market leads nation as only city to record house price growth
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