State of Markets - QLD September 2014
Queensland’s market is deeply divided and its future outlook is still unclear
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Despite moderate growth over recent years, many experts believe Brisbane is a market to watch. In the year to June, prices increased by seven per cent, according to RP Data. Sales volumes also leapt ahead, increasing by 23.6 per cent over the year.
BIS Shrapnel predicts Brisbane will be the strongest market over the next three years. The company believes dwelling deficiencies and comparative affordability will drive prices higher. While slow economic conditions may put a lid on activity in the long-term, the BIS forecast says prices could rise by 17 per cent through to 2017.
This sentiment is shared by Place Advisory, which suggests the Brisbane market is moving from strength to strength. The company advises the city has a six months supply of properties, indicating a future shortage that may boost prices.
The south-east corner is also seeing positive movement in the market. BIS Shrapnel identifies both the Sunshine Coast and Gold Coast as “underperforming” areas poised for a turnaround. An under-supply coupled with large-scale construction projects on both coasts may result in growth of 13 per cent in the next three years.
The REIQ said sales on the Gold Coast were up by 20 per cent over the past year while the Sunshine Coast turnover rose by four per cent. However, these regions continue to be dicey for vendors. An RP Data analysis shows vendors sold for less than the original purchase price in over 23 per cent of cases.
Indeed, the regions in Queensland record more loss-making sales than regional areas in any other state. Six of the top 10 worst markets are in the sunshine state, including Wide Bay were just under one in three sales result in a loss. Cairns, Mackay and Townsville were also highlighted for their poor track record.
On the flipside, BIS predicts both Townsville and Cairns may be due for a turnaround. The local economies are strengthening on the back of improved construction and tourism activity. Both towns may see growth of 11 per cent in the next three years, according to BIS.
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