Queensland continued to prosper despite the pandemic and recession, even becoming one of the most popular destinations for Australians seeking to relocate.
With median house prices rising for the second consecutive quarter for most parts of the state, Queensland has consistently defied the doom-and-gloom predictions that came with the onset of the COVID-19 outbreak.
The latest Queensland Market Monitor published by the Real Estate Institute of Queensland (REIQ) found that not one single region recorded a reduction in median house prices over the July-September 2020 quarter.
Brisbane reached $720,000 in median price in the latest quarterly results on the back of 4.4 per cent annual growth.
According to REIQ CEO Antonia Mercorella: “Brisbane has enjoyed substantially improved demand across the entire market, with transactions now higher than pre-pandemic figures. And with property prices forecast to perform strongly in the year ahead, it’s fantastic to see Brisbane reach a record-breaking median price.”
“While Brisbane remains considerably more affordable than other states, CoreLogic forecasts that one in 10 houses sold in our capital will fetch more than $1 million within the next two years, offering some of the best prospects of long-term capital growth.”
Ms Mercorella highlighted that Brisbane is uniquely positioned as a property market, thanks to a range of underlying strong market drivers, including liveability, affordability and economic investment.
“It’s for these reasons that Brisbane remains Australia’s leading capital city where you can confidently purchase an affordable home,” she said.
In terms of growth, regional Queensland led the charge, with quarterly growth of 3.2 per cent.
Among the top area performers are Isaac, nestled between Mackay and Rockhampton, which rose by 28.5 per cent; the Shire of Murweh in the Maranoa district, with a 21.2 per cent increase; and the Western Downs region north-west of Brisbane, which recorded 15.4 per cent growth for the quarter.
The best performer for median house price for a third consecutive quarter is Noosa, with a rise of 3.6 per cent to $895,000. Noosa’s quarterly median unit price was the category’s top performer for the state as well, rising 5 per cent to $705,000.
The remainder of theCoast also posted strong results, achieving the second-highest median unit price for the quarter – $445,000.
“Noosa has clearly seen the biggest market gains when you consider it’s ushered in a median house price of $895,000 on the back of an incredible five years’ growth of 53.6 per cent, easily maintaining its position as the most expensive housing market in Queensland,” according to Ms Mercorella.
“The Sunshine Coast property market continues to remain one of the prime spots in Australia, with quarterly growth of 1.8 per cent with a median house price now $620,000.”
Beyond the Sunshine Coast, Rockhampton and Mackay’s housing markets are Queensland’s biggest growth markets, rising 6.7 per cent ($275,000) and 6.0 per cent ($379,000), respectively, for the quarter.
Townsville properties have also put in another strong performance, becoming the second-best-performing region over the September quarter (3.1 per cent to $338,000).
Further, Gladstone land prices have soared, increasing by 20.0 per cent in just three months.
Ms Mercorella said: “It demonstrates current property market trends, with buyer demand at an all-time high since COVID-19 first took hold back in March. First home buyers in particular have been quick to move on both new builds and vacant land, thanks to the HomeBuilder grant, while Queensland’s rising interstate migration is also steering the property upswing.”
“We’re clearly living in extraordinary times. As a result of the COVID-19 pandemic, not only has it haphazardly fluctuated consumer sentiment, that same unpredictability has seen Queensland’s property market perform in ways that go against all of the economic predictions that were made early this year.
“Real estate across the state has remained extremely stable, with steady growth that continues to strengthen its appeal. Between record-low mortgage rates, low stock availability for sale, improvements in consumer sentiment and Queensland’s lifestyle drawcard, we’re likely to see broader increases in values in 2021.”
Queensland’s local affordability and lifestyle advantages made it one of the most popular destinations for Australians seeking to relocate, Ms Mercorella noted.
Over the past few years, the state has seen high net interstate migration, and it is expected to continue rising despite the impact of COVID-19 and the associated migration restrictions.
In 2019, Queensland had a net gain of nearly 23,000 people, with Brisbane attracting 70 per cent of those new interstate migrants. Over the same period, Victoria recorded the second highest at 9,900 people, while NSW had a net loss of just over 22,000 people – its largest annual exodus in 10 years.
“While Queensland is famously known for being ‘beautiful one day, perfect the next’, thanks to the brilliant brand strategies employed by Tourism and Events Queensland, with the world of travel and tourism changing and people’s priorities dramatically shifting as a result of COVID-19, our great state is more than just the weather that makes it such an incredible place to stay,” Ms Mercorella said.