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Qld home owners dominate 12-month growth window
Landlords across Queensland have benefitted from the region’s strong performances over the past year, dominating both the house and unit markets in growth, according to recent data.
According to REA’s latest analysis, house prices rose across 85 per cent of Australian suburbs over the past 12 months, while unit prices increased in 90 per cent of regions.
The data identified the top 10 suburbs nationally for percentage change in median automated valuation model (AVM) over a 12-month period, with Queensland holding the top spot.
The Sunshine State dominated with four of the top 10 suburbs for houses and seven for units.
Western Australia was the only other state to feature in the top 10 for median AVM for both houses and units, with three suburbs in each list.
Tasmania was the only other state making the house list, rounding out the top 10 with three suburbs making an appearance.
REA Group senior economic analyst Megan Lieu said the most prominent factor driving the rapid rise in house prices in these suburbs was their comparative affordability to capital city markets.
“All of the top 10 growth suburbs are located in regional areas where homes tend to be affordable relative to their capital city counterparts,” Lieu said.
“With the decline in housing affordability over the past few years, there has been positive net migration into regional areas, with many people seeking out more budget-friendly options.”
For houses, Ravenswood in Tasmania was the suburb with the largest 12-month change in median AVM, climbing by 41 per cent over the year.
The change saw the suburb reach a new median AVM of $511,000 for houses, while another Tasmanian suburb, Waverly, ranked third nationally, increasing by 39 per cent.
Home Hill in Townsville completed the top three, with an AVM increase of 40 per cent as its median price rose to $514,000.
Despite the relative affordability of most on the list, Sunshine Beach ranked fifth overall, with a median AVM of $2,839,000.
For units, Queensland’s Hillcrest and Beenleigh and Orelia in Western Australia saw the largest change nationally, recording a 42 per cent jump.
Perth and Brisbane were the major locations that saw a significant increase in unit values, with Cranbrook in Townsville the only suburb from outside of the two capitals to feature in REA’s top 10.
Lieu said that in addition to their relative affordability, recent interest rate hikes had restricted buyers’ ability to purchase in their capital cities, creating a need to pivot to regional centres.
Additionally, she said that recent changes to property taxation had made established properties significantly less attractive for investors.
“Areas with a high concentration of investors may see price falls.”
“However, regional markets remain comparatively resilient due to supply constraints, supported by internal migration.”
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