Queensland property market picking up steam
The decision to hold official interest rates steady at 4.25 per cent last week (March 7) was not well received by some Australian organisations, as many had hoped for a reduction.
The Housing Industry Association (HIA) saw the decision as detrimental to the economy, suggesting that the construction industry would continue to decline if rates were not soon lowered.
However, unchanged rates hold better promise than a rate hike and the economic situation does look optimistic in a few key areas.
Encouraging news was reported in Queensland last week, as signs of recovery in the Queensland property market have begun to present themselves.
A report from the Real Estate Institute of Queensland (REIQ) indicated that, like the housing market, the December quarter of last year may have marked a turning point for the unit and townhouse market.
The REIQ quarterly Queensland Market Monitor recorded an increase in median prices for units and townhouse in the region, with Brisbane posting a two per cent increase to $400,000 and the Gold Coast rising 5.3 per cent to $350,000.
REIQ chief executive officer Anton Kardash was pleased with the report.
“What we are starting to see is that as 2011 progressed, so did confidence levels in our property market with prices beginning to strengthen,” he said.
Cairns was the only major district in the state not to remain steady or post a median price rise.
Mr Kardash said: “Many regions posted their most robust price results this quarter since prior to the natural disasters at the beginning of last year.”
As confidence in the economy heightens and funds come to the area by way of resource investment, it is probable that other facets of the Queensland property market will begin to pick up speed.
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Its inevitable that the Brisbane will bounce back by the end of this year. I think when it does it will be a reasonably good boost in residential property values due to the last two to three years when we saw financial, construction and confidence woes coupled with natural disasters. This has put a heavy dampener on markets here but I believe when it bounces back there wont be enough supply to keep up due to developers having there hands tied from finance restrictions. With mining pushing forward and FIFO from the cities, wages are set to increase. Hang in there Queenslanders…it will look rosier soon.
[quote=mickstuth]Its inevitable that the Brisbane will bounce back by the end of this year. I think when it does it will be a reasonably good boost in residential property values due to the last two to three years when we saw financial, construction and confidence woes coupled with natural disasters. This has put a heavy dampener on markets here but I believe when it bounces back there wont be enough supply to keep up due to developers having there hands tied from finance restrictions. With mining pushing forward and FIFO from the cities, wages are set to increase. Hang in there Queenslanders…it will look rosier soon.[/quote]
Sorry dude but I had tears in my eyes reading that…..
The Freckle
Whatever happens, it’s going to be an interesting couple of years in the Australian property market…
Mick and Freckle (above) should make a bet :)
Michael Matusik writes a blog on the QLD property market, it's worth subscribing to http://matusikmissive.wordpress.com/
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Freckle – Can you give us reasons why micktuth's comment had you in so much laughter with tears? I think its a fair comment.Gladstone, Mckay and surrounding areas, it seems obvious after the floods in Brisbane there would be a withdrawal by the market but investors do sometimes have short memories.
Just FYI Freckle your comments are pretty shallow and I dont think ridicule actually helps anyone on the site and I dont think everyone respects you more for feigning laughter.
Hold on Brisbanites….the property sector shall recover eventually…be it unpredictable events like inland tsunamis cannot be catered for or its follow on reaction to the market "public perception or feelings". This is where it is a good strategy not to have all your eggs in the same basket – whether it's property in another city/state or shares/CFD's et cetera. There are numerous avenues to secure funds into a profitable sector….a bank will give you 5% if you want to sit on it for a while. Steve McKnight has great insight into where the property sector is heading, so it would be good to keep listening to him and attend the Mega Conference in Melbourne this year 1st June – 3rd June incl. Steve said it's 90% full at present, so don't wait. See you there.
Love blind optimism… eventually things will right themselves hey Bruce…he he…fantastic advise.
Mega conference..sounds like an upsized mcdonalds meal… I wonder why Steve has fallen into this shallow marketing strategy of grandiose titling …are his client base that shallow???…perhaps!… do you want a coke with that???
One thing that people dont like hey ahsmithers, is contra points being articulated…and people laughing at blind optimism.
Sadly i am sorry to say, i support the freckle in his mirth.
The aussi property mkt..the qld property mkt..is in for a significant period of stagnation..if not devaluation..(and dont tell me that this has not occurred already..and is occurring as we debate…the mkt is flat and getting flatter)..
the world has got smaller.
the world is in recession bordering depression.
the world buys aussi extractive metals, when booming…and stops when retracting
all global mkts are retracting.
Aussi wages do not match the requisites for increased real estate prices
Aussi banks are tied globally
Aussi banks are scared
I could go on.
hang on for a bumpy real estate ride id say…
Thanks for the info "Deano the Braveheart" – I concur with most of your comments – you hit the nail on the head. I would take it so far as to say the market shall need to reset to a significantly "lower" pricing as in some areas we have been riding on a false high for some years now. Research research research and it still is a calculated risk…no crystal balls here.
It would be great if Steve served the golden arches at the MEGA conference – but I would rather get fat of profit than calories.
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