Queensland’s property market is on fire as dozens of suburbs recorded double-digit growth in the December quarter, pushing prices up hundreds of thousands of dollars in some pockets.
Exclusive PropTrack analysis revealed prices increased by up to 23 per cent in Queensland’s best performing markets last quarter, while 237 markets recorded growth of 10 per cent or more.
Taking the top spot was the Sunshine Beach house market, where the average cost of a detached property in the Sunshine Coast suburb rose by $527,621 from $2.341m to $2.879m in just three months, an increase of 23 per cent.
In second place was the Logan Central unit market, with prices up 19 percent quarter-on-quarter, followed by the Little Mountain unit market, up 18 percent.
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A home at 31 Small St, Tenerife, is for sale for between $3.4m and $3.6m in a booming market. Photo: Michael McQueen
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The housing market in the rural town of Healy was the country’s fourth best performing market last quarter, with house prices up 16 per cent.
The housing market in Robertson and Gailes tied for fifth place after recording quarterly price growth of 15 percent.
While prices were up 14 per cent in the Hillcrest, McDowall, Woodridge, Southside and Waterford West housing markets, as well as the Kairabah, Drewvale, Dayboro, Dinmore and Underwood markets.
PropTrack senior economist Anne Flaherty said nationally, many of the fastest growing markets are affordable, especially those priced under $800,000.
“Affordability is driving more people to less expensive areas,” he said.
Ms Flaherty said the demand for affordable housing is also a result of increased activity from investors, who tend to target areas in some of the cheapest suburbs.
“Investors were returning to the market looking for long-term growth,” he said.
“It is clear that we have a housing shortage problem that will take time to fix.
“Investors realize that population growth is strong and we are not building enough, and there has been a reduction in interest rates, so there has been an expectation of long-term (value) growth.”
Ms Flaherty said that the areas that are popular with investors are also the areas that are targeted by first-time buyers who want to buy houses under the First Home Guarantee Scheme.
The program allows eligible buyers to purchase properties with as little as 5 percent deposit without having to pay high-cost mortgage insurance.
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PropTrack’s senior economist, Anne Flaherty. Image: Provided
Ray White New Farm’s Meaghan Bakker said the Christmas rush played a role in Brisbane house prices rising in the December quarter.
“In that last quarter of the year there is a psychological barrier for consumers who want to buy before Christmas,” he said.
“We had an auction in the room on December 13 and 26 properties were listed for sale.
“We sold about 11 of them before the sale and that was because buyers and sellers were very motivated to do things before Christmas.”
An experienced agent said in Brisbane, supply and demand remained the main driver of strong prices.
“For example, the demand for completely renovated, turnkey buildings is amazing at the moment,” he said.
“The downsizing market is really strong and most of the buyers we’re seeing in the city center … are looking for low-maintenance homes in those respectable pockets.”
Meaghan Bakker of Ray White New Farm. Photo: realestate.com.au
Ms Bakker said that in entry-level markets, the First Home Guarantee Scheme is increasing demand.
“That created a lot of new buyers and didn’t give many sellers to come in,” he said.
Ms Bakker said on the other side of the equation, there is a shortage of stocks with things like the 2032 Olympics having an impact.
“One of the reasons why the market is so hot is that many sellers are holding on to goods because they believe that there is still a lot to go on because of the Olympics,” he said.
“So there is a shortage of supplies and that’s why we had (such high growth) in the December quarter.”
Place One Group principal and marketer Sam Kelso said he had seen a significant increase in interest in Brisbane units across all market segments.
“We’re seeing what I like to call the ‘consumer sandwich,'” he said.
“We found young people who earn twice, have no children and do not buy second-hand, but we also found young people who compete for units.
“There are about seven or eight of our registered auctioneers, and five per house.”
A home at 463 Pine Mountain Rd, Carindale, sold for more than $2.28m as house prices in the suburb rose 9 per cent in the December quarter. Photo: realestate.com.au
Mr Kelso said buyers were choosing units for health and financial reasons.
“As the Brisbane market has matured, having a family in a unit or townhouse has become more common,” he said.
“People have kids and they live in units, and they take advantage of Brisbane’s beautiful parks and weather.
“I have spoken to others who bought a house and after 18 months they sold it to return to a unit or townhouse, as there is no maintenance, there is no need to mow the lawn or take out the bins.”
Mr Kelso said there were plenty of buyers looking for units at all price points, with the sub-$1m market in high demand due to an increase in first-time home buyers.
“What worries me is that we are on the verge of double-digit growth in the Brisbane and townhouse market this year,” he said.
“There is not enough stock in the market for people who want to buy.”
