State of Markets – QLD February 2012

Queensland market set to improve
Queensland will see investors returning to the market after a year of waiting on the sidelines, according to an independent property advisory firm.

The December ‘Matusik Snapshot’ house price update from Matusik Property Insights forecasts that Queenslanders will soon start buying again as housing becomes more affordable.

“The vacancy rate across much of the state is tightening and rents are rising. New rental listings are down 5 per cent across the state (on this time last year) and have fallen 11 per cent in Brisbane,” the report said.

Matusik Property Insights predicts that prices will stabilise over the next six months, as new sales listings are down 20 per cent across Queensland, and 29 per cent in Brisbane.

“We also believe that Brisbane is at the bottom of the cycle and barring a catastrophe, the Queensland market will show remarkable improvement in 2012.”

Brisbane has seen a 10 per cent drop in dwelling value since last year, compared with a 4 per cent nationwide average.

Townhouse popularity increases
Townhouses are becoming an increasingly popular choice for Queensland’s buyers, renters and investors, according to the Real Estate Institute of Queensland (REIQ).

“Townhouses are usually priced midway between houses and units so they are the best of both worlds,” said REIQ managing director, Dan Molloy.

“They are attractive to buyers who desire a larger property, which is still affordable, but is located closer to the city or entertainment precincts.”

The REIQ said about 20 per cent of all unit sales over the September 2011 quarter were townhouses.

Residential Tenancies Authority data also reveal the number of three bedroom townhouses being rented in Queensland has increased by more than 80 per cent in a decade.

The number of rented two bedroom units grew by only two per cent, and rented three bedroom houses by just three per cent over the same period.