Queensland property market continues its steady climb

THE Sunshine State’s property market continues its steady sales rise, according to the Real Estate Institute of Queensland (REIQ).

Quarterly median sales results for the June quarter show median house prices climbing 4.46 per cent over the quarter, and 12.14 per cent over the year.

Apartment prices rose five per cent over the quarter, and 14.14 per cent annually.

The number of days on market tightening by about a week compared to the year prior with houses selling in about 22 days, and units sold in just 19 days.

Among the strongest quarterly growth in the state in the house market, were regional areas such as Rockhampton (9.2%), Townsville (8.34%), Gladstone (6.74%) and Mackay (6.19%).

Looking at annual house growth, the top four performers were Ipswich (16.67%), Brisbane (16.16%), Toowoomba (16.02%) and Rockhampton (15.07%).

For the unit market, quarterly price growth stood out in Gladstone (13.82%) and Ipswich (10.59%), while the annual growth was staggering in Logan (22.06%) and again Ipswich (18.71%) showing a surge for the suburbs on the cusp of the capital city.

REIQ chief executive Antonia Mercorella said the growth came alongside major projects for Brisbane and regional Queensland.

“There’s a growing buzz around Brisbane. The optimism for our capital city is contagious, creating a ripple effect right across the state – great news for all Queenslanders,” Ms Mercorella said.

The are significant challenges for first home buyers face in Queensland – namely a widening deposit gap, the CEO conceded.

“In Queensland, a 20% home deposit for a first home now represents 1.64 times the average annual earnings,” she said.

“With the annual median house price in Brisbane now $1.15m, the median deposit is now $200,000, putting the dream of home ownership out of reach for many.”

High rental costs make it incredibly difficult for individuals to save for a home purchase.

“When you also factor in the additional costs of stamp duty, potential lender’s mortgage insurance, and other buying costs, the prospect of owning a home can seem impossible for first home buyers,” she says.

“The REIQ has proposed several measures to the Queensland Government to help homebuyers overcome this significant deposit gap in our recently launched state election policy platform.”

Highlighting CBA cost-of-living data that showed those aged from 20 to 44 were seeing a deterioration in their savings, Ms Mercorella said: “It is this demographic that we need to help into home ownership, as they are facing the most difficult economic environment in living memory.”