The document summarizes real estate market conditions across various regions in Queensland, Australia for the September 2015 quarter. Some key points:
- The Brisbane housing market continued steady growth, with the median house price reaching a new high of $615,000 and sales up 5%. Nearby regions like Ipswich and Moreton Bay also saw rising prices and increased sales.
- Tourism-focused markets like the Gold Coast and Cairns improved, with the Gold Coast seeing the highest quarterly price rise and Cairns reaching a new median of $400,000. Toowoomba sales rebounded after slowing earlier in the year.
- Regional centers like Mackay, Rockhampton and Townsville saw relatively stable
1. your state-wide property research guide suburb by suburb
REIQ
QUEENSLANDMARKETMONITORISSUE28
SEPQTR2015
>p2
QMM STATE-WIDE COMMENTARY
Proudly supported
by REIQ member
Linda
DeBello
STEADY GROWTH
CONTINUES IN
SEQ
The Brisbane local government area (LGA) median house
price has pushed to a new high of $615,000 as consistent
steady growth continues.
While predictions have been prolific that the slowing
conditions in Sydney would flow through to Brisbane,
the Queensland capital city has clearly defied predictions,
helped by southern investors eyeing off bargains in the
sunshine state.
According to data from the Australian Bureau of
Statistics, investor activity increased 1.4 per cent in
Queensland over the month of September.
Regional centres once reliant on the mining industry
are still stabilising, with the bottom of the market likely
having now been met in most areas.
Ongoing employment issues are the largest hindrance on
these regions entering a recovery phase.
In light of this, a number of local councils are
implementing initiatives that will diversify their region’s
economy in an effort to create new industries and
new jobs.
2. 2 QUEENSLAND MARKET MONITOR
REIQ RESEARCH EXPLANATORY NOTES
SALES MARKET DATA
All figures for the most recent quarterly and yearly periods
are preliminary only and subject to further revision as
additional sales records become available (see Research
Methodology online at reiq.com).
As of the June quarter 2013, all sales data includes
"Recent Sales" as advised by real estate agents as
well as official records as advised by DNRM. As such
comparisons with figures published prior to the June
quarter 2013 should be done with caution.
A median sale price is derived by arranging a set of sale
prices from lowest to highest and then selecting the
middle value within this set (ie the 50th percentile, where
half of recorded sales were less and half were higher than
the median).
Only suburbs and regions to record sufficient sales numbers
at the time of reporting are published.
N/A
Due to insufficient sales numbers (as at the time of data
extraction) no median sale price has been calculated
(LGA) Local Government Area
Brisbane
(SD)
Brisbane Statistical Division comprising the LGA’s of
Brisbane City, Ipswich City, Logan City, Moreton Bay
Regional and Redland City
Sunshine
Coast (SD)
Sunshine Coast Region comprising the LGA's of
Sunshine Coast Regional and Noosa.
# Figures based upon the new council boundaries
^
Indicates acreage sales only (with land size greater than
2400m2
). All other data is based upon sales with a land
size of less than 2400 m2
~
Median price changes influenced by varying quality of
stock sold
*
Median price changes influenced by varying quantities
of new properties sold
f
Median price changes influenced by varying quantities
of waterfront properties sold
t
Medians affected by varying quantities of townhouses
sold
Y Median affected by high yielding property sales
1
Median price changes influenced by the varying
volumes of sales between the Mainland and Bay Islands
areas
ON THE MARKET INDICATORS
At the time of publication, latest information available
was for the 12 months ending the month prior to the
current period.
"Days on Market" is calculated as the average number of
days it has taken to sell those properties sold by private
treaty sale during the 12 month period. The calculation
excludes auction listings and listings where an asking
price is not advertised. The days on market calculation
uses the contract date on the property compared with the
first advertised date.
"Vendor Discount" is the average difference between the
contract price on a property and the first advertised price.
The figure is expressed as a percentage and is an average
of all private treaty sales which sold for less than their
initial asking price during the last 12 months. Auction
listings, listings without an advertised asking price and
properties sold at or above list price are excluded from
the calculation.
"Total Listings" is the total unique number of properties
that have been advertised for sale and captured by
RP Data over the 12 month period. To be included
in the count, the listings have to be matched to an
actual address.
"% Stock on Market" is the percentage of dwellings within
the suburb or local government area that have been listed
for sale over the past year.
Source: REIQ, data supplied by CoreLogic RP Data (www.corelogic.com.au)
PRICE POINT GRAPHS
All data contained within these graphs represent
preliminary sales numbers and are subject to revision as
additional sales records become available.
The data excludes any recent sales transactions where the
contract sale price was not disclosed.
The intention of these graphs is to gauge trends in
sales activity between periods in lieu of actual final
sales results.
Source: REIQ, data obtained from CoreLogic RPData
Data report date: 11 Nov 2015 Published date: 14 Dec 2015
GROSS RENTAL YIELDS
House yields are based upon REIQ median house prices
and RTA median weekly rent for three bedroom houses.
Unit yields are based upon REIQ median unit &
townhouse sale prices and RTA median weekly rent for
two bedroom units and townhouses.
VACANCY RATES
All figures are based upon all residential rentals as at
the end of each quarterly period, as submitted by REIQ
accredited agents.
Only LGAs with a minimum sample size of 10 per cent
(based upon number of bonds held by the RTA) are
reported on.
N/A
Due to insufficient information received no vacancy rate
has been calculated
Source: REIQ Residential Rental Survey
RENTAL MARKET DATA
All median weekly rents are published on a postcode
basis, as calculated by the Residential Tenancies
Authority, where sufficient data is available.
Caution should be exercised when interpreting any
median rental price data based upon a relatively small
number of new bond lodgements.
Figures for the new LGA's available for the current
quarter only.
L
Listed localities (or suburbs) represent one of potentially
several that fall within that postcode.
N.A.
Due to insufficient new bond lodgements, no median
rental price has been calculated
Source: Residential Tenancies Authority, Rental Bond lodgements
(www.rta.qld.gov.au)
3. 3
STATE-WIDE SUMMARY
SEPTEMBER QUARTER 2015
FALLING
STABILISINGRECOVERING
RISING
BRISBANE HOUSE MARKETS
September Quarter 2015
Source: REIQ
Brisbane
↑ Moreton Bay
↑ Logan
Redland
Ipswich
FALLING
STABILISINGRECOVERING
RISING
QUEENSLAND HOUSE MARKETS
September Quarter 2015
Source: REIQ
Brisbane SD
Cairns
Gold Coast
Sunsine Coast
Fraser Coast
Mackay
Bundaberg Gladstone
Rockhampton Townsville
↑ Toowoomba
The Real Estate Institute of Queensland Ltd. Copyright 2014
21 Turbo Drive, Coorparoo, PO Box 1555, Coorparoo DC Q 4151
Ph: (07) 3249 7347 Fax: (07) 3249 6211
Email: research@reiq.com.au
3 QUEENSLAND MARKET MONITOR
Queensland market update 1
REIQ Explanatory notes 2
Brisbane market updates
Brisbane City 6
Greater Brisbane 11
Regional market updates
Gold Coast 16
Toowoomba 19
Sunshine Coast 21
Fraser Coast 23
Bundaberg 25
Gladstone 27
Rockhampton 28
Mackay 30
Townsville 32
Cairns 34
Other Regional 36
On The Market Indicators 37
Total Listings
% Stock on Market
Average Vendor Discount
Average Days on Market
Rental Market Indicators 39
Gross rental yields
Residential vacancy rates
TABLE OF CONTENTS
REIQ
The tourism
centres
showed
significant
improvement
to house sales
markets
STATE-WIDE
SUMMARY CONTINUED
HOUSE MARKET
Over the September quarter, the Brisbane house market
led the way, with preliminary house sales reaching levels
not seen in more than five years. New listings helped
the market maintain equilibrium, fostering sustainable
property price growth.
Sales activity was also up across the southeast and the
tourism centres, with Ipswich the stand-out performer.
Ipswich also recorded the highest quarterly increase for
the Greater Brisbane region with the median house price
lifting 1.6 per cent to $320,000.
The tourism centres also continued to improve, with the
Gold Coast's median house price recording the highest
quarterly increase of all the major centres.
Cairns performed well over the quarter, recording a new
median house price of $400,000, up 2.6 per cent. With
house sales activity and listings up, the state’s
far north tourism destination moved into stronger market
conditions.
After easing sales activity over the first half of 2015,
Toowoomba house sales activity bounced back, up 13
per cent over the quarter. Following a strong 2014, local
agents say Toowoomba is likely to stick to the
established long-term trend of conservative yet
consistent property price growth.
On the Fraser Coast, sales market conditions remained
steady with little change.
Average days on market and average vendor discounting
remained relatively unchanged, while listings increased
slightly heading into spring.
In other regional centres, market conditions remained
weak, although, September quarter data shows Gladstone
may be turning a corner.
The major east coast cities of Rockhampton and
Townsville, along with Bundaberg also recorded relatively
stable house sales activity over the quarter, however
improvements in days on market and vendor discounting
have yet to be seen.
4. 4 QUEENSLAND MARKET MONITOR
STATE-WIDE SUMMARY
HOUSES (<2400) UNITS & TOWNHOUSES VACANT LAND (<2400)
LGA
MEDIAN
SALE PRICE
QTRLY
CHANGE
SALES
ACTIVITY
CHANGE
MEDIAN
SALE PRICE
QTRLY
CHANGE
SALES
ACTIVITY
CHANGE
MEDIAN
SALE PRICE
QTRLY
CHANGE
SALES
ACTIVITY
CHANGE
GREATER BRISBANE
BRISBANE SD $480,000 0.2% 5% $397,500 1.9% 7% $207,750 -3.3% 4%
BRISBANE $615,000 0.8% 5% $430,000 1.2% 13% $342,500 0.4% 25%
IPSWICH $320,000 1.6% 12% $258,000 3.2% 15% $176,250 0.2% 18%
LOGAN $359,000 0.4% 5% $238,000 3.9% -15% $179,870 -0.8% -18%
MORETON BAY $406,000 1.2% 3% $330,000 3.9% -6% $240,000 1.9% -8%
REDLAND $485,000 1.0% 2% $390,000 6.1% ~ t -1% $28,000 -88.8% * b 16%
TOURISM CENTRES
GOLD COAST $545,000 3.8% 6% $345,000 -1.4% 27% $240,000 0.0% 9%
SUNSHINE COAST SD $496,500 0.3% 5% $366,500 -0.9% 2% $257,000 3.8% 4%
SUNSHINE COAST $492,500 0.5% 6% $358,000 -0.6% -3% $257,000 4.7% ~ -1%
NOOSA $520,000 -3.7% ~ -5% $434,000 3.2% 23% $310,000 N/A * f 67%"
FRASER COAST $300,000 0.2% 0% $216,250 -15.9% ~ f -13% $151,000 -8.5% ~ 36%"
CAIRNS $400,000 2.6% 12% $225,000 2.5% 10% $192,500 -3.5% ~ -22%
REGIONAL CENTRES
BUNDABERG $269,000 -2.6% 0% $271,000 27.8% ~ -35%" $142,500 0.4% 8%
GLADSTONE $342,000 -9.4% ~ -5% N/A N/A -52%" N/A N/A -44%"
MACKAY $345,000 -2.8% 9% $227,500 -18.8% ~ -29%" $156,000 -25.0% ~ 9%
ROCKHAMPTON $275,000 -7.4% ~ -5% $347,500 N/A 14%" $154,500 -2.8% 21%"
TOOWOOMBA $353,000 0.6% 13% $310,000 10.7% * t 23% $170,800 -7.2% ~ * 23%
TOWNSVILLE $342,000 0.3% -1% $250,000 -19.5% ~ -3% $150,000 -8.5% 57%
ON THE
MARKET"
HOUSES (ALL) UNITS (ALL)
LGA
STOCK
ON
MARKET
DAYS ON
MARKET
VENDOR
DISCOUNT
STOCK
ON
MARKET
DAYS ON
MARKET
VENDOR
DISCOUNT
GREATER BRISBANE
BRISBANE SD 7.2% 68 -5.6% 7.6% 78 -5.3%
BRISBANE 6.6% 59 -5.6% 6.9% 69 -4.8%
IPSWICH 7.9% 84 -6.6% 9.7% 117 -7.4%
LOGAN 7.7% 75 -5.4% 10.7% 93 -6.3%
MORETON BAY 7.6% 73 -5.3% 9.3% 104 -6.1%
REDLAND 8.5% 75 -5.7% 9.8% 91 -5.2%
TOURISM CENTRES
GOLD COAST 8.3% 72 -5.6% 9.7% 93 -6.1%
SUNSHINE COAST SD 9.4% 88 -5.8% 10.1% 106 -6.3%
SUNSHINE COAST 9.2% 85 -5.6% 10.1% 103 -6.2%
NOOSA 10.5% 104 -6.5% 10.4% 116 -6.9%
FRASER COAST 10.1% 110 -7.7% 13.5% 111 -6.3%
CAIRNS 7.7% 67 -6.4% 9.1% 87 -7.1%
REGIONAL QLD
BUNDABERG 8.8% 107 -8.1% 10.8% 140 -8.2%
GLADSTONE 7.3% 100 -9.4% 6.7% 121 -11.8%
MACKAY 6.9% 110 -11.4% 7.5% 133 -12.9%
ROCKHAMPTON 7.8% 103 -9.1% 7.6% 118 -7.4%
TOOWOOMBA 8.4% 67 -5.3% 7.8% 77 -4.2%
TOWNSVILLE 7.2% 94 -8.9% 9.8% 119 -9.1%
"All figures are for the 12months ending August 2015
SD - Statistical Division: Brisbane SD (Brisbane, Ipswich,
Logan, Moreton Bay & Redland); Sunshine Coast SD
(Sunshine Coast & Noosa)
"Due to low volume of sales, % changes should be used with caution.
N/A - not available due to insufficient sales numbers
b The median sale price for vacant land in the Redland City LGA is significantly impacted by shifts in the number of property sales on the bay islands
versus the number on the mainland in high quality subdivisions.
Mackay’s house market was patchy, with some market
indicators in decline despite sales numbers increasing
nine per cent over the quarter. The region’s median
house price softened 2.8 per cent to $345,000 over the
September quarter.
UNIT MARKET
Broadly speaking, the unit and townhouse markets
across the state followed the sales trends set by the
housing markets.
Greater Brisbane and the tourism centres were the
standout performers with the Gold Coast recording the
highest lift in preliminary sales activity.
Median sale prices in Greater Brisbane were up across
all council areas, while the tourism centres recorded
relatively steady results on the back of strong sales at the
affordable end of the market.
Data reveals that investor interest is picking up with Gold
Coast agents saying interstate investors are beginning to
turn their attention to the sunshine state.
Toowoomba’s unit and townhouse market rebounded
over the quarter, with sales up 23 per cent. News of
major infrastructure projects proceeding is keeping the
momentum in the market.
In other regional centres, sales turnover in the unit market
eased. Investor interest outside the southeast corner is
extremely limited and there is little or no new development
activity on the cards, softening local economies.
5. 5
STATE-WIDE SUMMARY
SEPTEMBER QUARTER 2015
FOR FULL ON THE MARKET AND RENTAL MARKET STATISTICS
BY LOCAL GOVERNMENT AREA, SEE PAGE 37-39
VACANCY RATES
LGA/REGION SEP-15 TREND
GREATER BRISBANE
BRISBANE SD 2.3% STEADY
BRISBANE 2.8% STEADY
IPSWICH 1.3% DOWN
LOGAN 1.9% DOWN
MORETON BAY 1.6% STEADY
REDLAND 2.5% STEADY
TOURISM CENTRES
GOLD COAST 1.7% DOWN
SUNSHINE COAST SD 1.3% DOWN
SUNSHINE COAST 1.4% STEADY
NOOSA 0.9% DOWN
FRASER COAST 3.3% DOWN
CAIRNS 2.6% STEADY
REGIONAL QLD
BUNDABERG 4.6% STEADY
GLADSTONE 7.1% UP
MACKAY 9.1% STEADY
ROCKHAMPTON 4.5% DOWN
TOOWOOMBA 2.7% DOWN
TOWNSVILLE 5.6% STEADY
See page 39 for full vacancy rate data
* change greater than $20 (rents) or 0.5 pts (yields)
RENTAL TRENDS^ MEDIAN WEEKLY RENT GROSS RENTAL YIELDS
LGA 3-BED HOUSE 2-BED FLAT 3-BED TOWNHOUSE HOUSES UNITS
GREATER BRISBANE
BRISBANE $420 STEADY $400 STEADY $415 STEADY 3.6% STEADY 4.8% STEADY
IPSWICH $300 STEADY $255 STEADY $315 STEADY 4.9% STEADY 5.1% DOWN
LOGAN $350 STEADY $270 UP $340 STEADY 5.1% STEADY 5.9% STEADY
MORETON BAY $350 STEADY $280 STEADY $340 STEADY 4.5% STEADY 4.4% STEADY
REDLAND $390 STEADY $330 UP $395 STEADY 4.2% STEADY 4.4% STEADY
TOURISM CENTRES
GOLD COAST $450 STEADY $380 STEADY $400 STEADY 4.3% STEADY 5.7% STEADY
SUNSHINE COAST $420 STEADY $340 STEADY $410 UP 4.4% STEADY 4.9% STEADY
NOOSA $430 DOWN $360 STEADY $480 STEADY 4.3% STEADY 4.3% STEADY
FRASER COAST $360 STEADY $285 STEADY $375 UP* 5.0% UP* 5.9% UP
CAIRNS $290 STEADY $245 UP $310 DOWN 4.7% DOWN* 6.6% UP*
REGIONAL QLD
BUNDABERG $285 STEADY $220 STEADY $275 DOWN 5.5% STEADY 4.2% DOWN*
GLADSTONE $290 DOWN $220 DOWN* $300 DOWN* 4.4% UP N/A N/A
MACKAY $295 STEADY $220 STEADY $290 DOWN 4.4% STEADY 5.0% UP*
ROCKHAMPTON $290 STEADY $220 DOWN N.A. UP* 5.5% UP 3.3% N/A
TOOWOOMBA $300 STEADY $250 STEADY $300 DOWN* 4.4% STEADY 4.2% DOWN
TOWNSVILLE $305 STEADY $255 STEADY $330 STEADY 4.6% STEADY 5.3% UP*
RENTAL MARKET
Vacancy levels in the southeast corner are healthy to tight,
with many suburbs either tightening slightly over the
quarter or remaining in the healthy range.
However, as the sales market improves local agents
anticipate that the rental market will ease over the coming
quarters. Ongoing low interest rates mean that for many
renters - especially those in the inner city - the cost of
living is actually cheaper with a mortgage than in a rental
property. This will impact on rental vacancy rates as
renters move into home ownership.
In regional areas vacancy rates remained relatively
unchanged with weak rental market conditions prevailing.
Gladstone’s vacancy rate was the exception as it returned
to above seven per cent with more ex-mining company
owned properties coming into the private rental pool.
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6. 6 QUEENSLAND MARKET MONITOR
BRISBANE MARKET UPDATES
BRISBANE
CITY
In line with historical September quarters, Brisbane’s house
market recorded a healthy rise in residential sales activity for
the 2015 September quarter.
While predictions have been prolific that the slowing
conditions in Sydney would flow through to other major
capital cities, Brisbane has clearly defied expectations.
On the market indicators of average days on market and
average vendor discounting have remained relatively
unchanged since the end of June, proving that the
Brisbane property market is growing at a healthy and
sustainable level.
Listing numbers continue to increase with more vendors
recognising the good selling conditions. This trend in
listings is encouraging and will ensure there is enough
supply to meet the growing demand. With more listings
coming onto the market to meet the growth in buyer
numbers, conditions are ripe for property prices to grow at a
steady rate.
HOUSE MARKET
Over the September quarter, Brisbane preliminary house
sales were up five per cent on the June quarter, taking
the city’s sales turnover to a level not seen in more than
five years.
With growing confidence and activity across all price
points, the overall median was up marginally, by 0.8 per
cent, to $615,000 – setting yet another record median
sale price.
Demand for houses in the $500 000-plus bracket grew
significantly, with 129 more sales this quarter compared
with the previous quarter.
The growth in listings across all price points is meeting
growing buyer demand with average days on market and
average vendor discounting rates at levels consistent
since the start of the year.
Standout suburbs over the quarter were typically middle to
outer-ring suburbs with Eight Mile Plains, Mount Gravatt
East and Manly West recording some of the strongest
increases in preliminary sales numbers.
The prestige market performed well this quarter. Two new
suburbs entered the million-dollar median price group,
with Grange and Robertson joining blue-chip suburbs
such as Bulimba, Chelmer, Hamilton, New Farm, Teneriffe
and St Lucia.
UNIT MARKET
Brisbane’s unit and townhouse market also performed
strongly with preliminary unit and townhouse sales up 13
per cent compared with the June quarter.
Increased activity was not confined to any one area with
the top increases in activity occurring in inner, middle
and outer ring suburbs.
Activity also increased across all price points with the
$350,000-plus price point recording the largest increase.
Sales in the prestige unit market lifted, with 14 more
sales in the million-dollar-plus category compared with
the June quarter.
Brisbane's median unit sale price was up 1.2 per cent to
$430,000 this quarter.
The median has hovered around this level since the
September quarter last year, indicating that real price
growth is yet to occur in this section of Brisbane’s
residential market.
With new apartments coming onto the market, listing
numbers were up 13 per cent on the previous year. As a
result, average days on market increased to 69 days while
average vendor discounting remained relatively stable,
up just 0.1 percentage points to 4.8 per cent over the year
to August.
RENTAL MARKET
Brisbane City vacancy rates increased marginally by 0.1
percentage points to 2.8 per cent, largely due to easing
conditions for the city’s inner ring.
Increased supply levels are starting to impact on the
inner city, with the vacancy rate easing to 3.3 per cent at
the end of September.
Local agents reported that asking rents were easing and
rental incentives were being used to help secure tenants.
Easing tenant demand was also reported.
However, even though demand is easing, generally
speaking median rents have not yet softened, with the
exception of the inner-north where rents dropped slightly
by $10 over the quarter.
In the middle to outer ring local agents reported that
despite low vacancy levels, listings were taking longer
to rent. Increased investor activity was also adding to
current supply levels.
Listing numbers continue
to increase with more
vendors recognising the
good selling conditions.
11. 11SEPTEMBER QUARTER 2015
BRISBANE MARKET UPDATES
GREATER BRISBANE
FALLING
STABILISINGRECOVERING
RISING
BRISBANE HOUSE MARKETS
September Quarter 2015
Source: REIQ
Brisbane
↑ Moreton Bay
↑ Logan
Redland
Ipswich
QUEENSLAND HOUSE MARKETS
September Quarter 2015
↑ Toowoomba
The Brisbane Statistical Division, also known as Greater
Brisbane, improved considerably with preliminary sales
activity and listings up significantly.
Average days on market and average vendor discounting
have continued to improve, despite increased supply
coming onto the market which would normally soften
those statistics. Data reveals that the outer suburbs are in
demand from owner occupiers and investors.
The strengthening local economy and positive population
growth are key drivers for continued property demand.
Rental markets throughout Greater Brisbane are tight and
demand from tenants is spread throughout the inner,
middle and outer suburbs as many move further out
seeking more affordable options. Investors are offloading
properties and in many cases selling to owner occupiers.
HOUSE MARKET
For the September quarter, the Brisbane Statistical
Division (SD) recorded little change in its median house
price, up 0.2 per cent. However, sales activity was up five
per cent compared with the previous quarter.
Moreton Bay has taken the lead as the strongest
performing house market in Greater Brisbane with
the shortest days on market and lowest average
vendor discounting.
Logan City has recorded the largest increase in
preliminary sales activity over the year to September, up 17
per cent.
Logan has also overtaken Redland City in average vendor
discounting.
Ipswich may be trailing the other regions in terms of time
on market and vendor discounting, but it was the standout
performer for sales activity.
According to local agents, this comes as no surprise given
the relative affordability of the region and the strong rental
yields being achieved.
Owner occupiers are starting to see good value for money
in suburbs outside of metropolitan Brisbane. Over the
year to September, the suburbs of Yamanto (Ipswich),
Deception Bay (Moreton Bay), Rochedale South (Logan)
and Mango Hill (Moreton Bay) recorded the highest
increase in preliminary sales compared to the previous
year including suburbs within metropolitan Brisbane.
Median prices across the Greater Brisbane council areas
are likely to continue to attract buyer interest given their
relative affordability and accessibility to major business
and retail districts.
UNIT MARKET
Over the September quarter, Brisbane Statistical Division
median sale price increased 1.9 per cent off the back of a
seven per cent increase in preliminary sales numbers.
While median sale price growth was consistent across the
council areas, sales activity was mixed.
Ipswich once again recorded the strongest increase in
sales activity while buyer activity in Logan, Moreton Bay
and Redland City eased or stabilised.
Interest in the Ipswich unit and townhouse market is
strong with average days on market and average vendor
discounting remaining relatively unchanged, despite an
increase of 12 per cent in listings over the year to August.
RENTAL MARKET
Vacancy rates in the outer suburbs of Greater Brisbane
were mixed, with Ipswich City tightening to 1.3 per cent, a
new lowest record for the region.
Local agents say rental stock is low as a result of
continued tenant demand and many tenants are staying
put partly because their options are so limited. The sale of
investment properties to owner-occupiers is contributing
to the short supply rental stock.
Logan City vacancy rate dropped, while Moreton Bay
has remained below two per cent despite a slight lift this
quarter.
The Pine Rivers region in the Moreton Bay council area
remains one of the tightest rental markets with a vacancy
rate of 1.3 per cent.
Local agents in the Redland City Council area say new
residential developments are adding to supply and are
competitively priced, which means established rentals are
experiencing tougher conditions. Over the three months
to September, the region’s vacancy rate was up 0.2
percentage points to 2.5 per cent.
16. 16 QUEENSLAND MARKET MONITOR
REGIONAL MARKET UPDATES
GOLD COAST
18 29
<$350k $350k+ $500k+ $1m+
55
557
698
119
44
567
776
139
<$350k $350k+ $500k+ $1m+
GOLD COAST HOUSE SALES (p)
JUN 15 SEP 15
1
4
70
431 427
58
92
437
477
42
<$350k $350k+ $500k+ $1m+
SUNSHINE COAST & NOOSA HOUSE SALES (p)
JUN 15 SEP 15
This quarter the Gold Coast has continued to improve with
solid growth in sales activity across all residential markets.
Key to the Gold Coast’s strengthening property market has
been growing employment opportunities, and in this regard
the Gold Coast is leading the charge in Queensland.
Both infrastructure and residential developments have
boosted jobs in the construction industry which is resulting
in an influx of residents to the region. The strengthening
tourism industry is also paving the way for further job
opportunities.
As Sydney and Melbourne potentially reach the peaks
of their respective markets it’s anticipated that more
buyers will be looking to the southeast corner for
purchasing opportunities.
The Brisbane to Gold Coast corridor continues to grow
and is creating pressure for infrastructure to keep
pace, including roads, water and sewerage lines. Traffic
congestion is a significant issue, with many commuters
travelling daily between Brisbane and the Gold Coast.
Upgrades to this arterial road network remain a priority, with
a $74.7 million interchange upgrade at Coomera just one
example of the local council’s efforts to improve safety and
traffic flow.
HOUSE MARKET
The Gold Coast house market performed strongly this
quarter, with preliminary house sales numbers up six
per cent over the quarter and 14 per cent over the year to
September 2015.
Similar to other strengthening house markets in
Queensland, this increased activity isn’t translating to
significant price growth. However, the Gold Coast recorded
the largest change in its median house price for both the
quarter and the year ending September, up 3.8 and seven
per cent respectively.
Local agents reported that buyers were still somewhat
price sensitive and were not rushing to purchase.
With the influx of new residents to the region, local agents
say affordably priced properties are in highest demand.
Outer suburbs in particular, such as Upper Coomera and
Pacific Pines remain in strong demand, recording the
largest increase in house sales over the year to September
for the Gold Coast region.
The prestige market is also performing strongly with well-
located properties in highest demand.
Average days on market have remained steady at 72 days,
however average vendor discounting continues to trend
downwards and at 5.6 per cent, is now almost half the
peak of around 10 per cent recorded in mid-2012.
UNIT MARKET
The unit and townhouse market claims the lion's share of
the Gold Coast residential sales market with sales up 27
per cent over the quarter.
According to local agents, investors as well as owner
occupiers are looking to the apartment market more –
driven by the accessibility to the inner city, infrastructure
and beaches.
Affordable stock is in highest demand and despite strong
sales in the prestige end of the market, units in the sub-
$350,000 price point recorded the largest increase in sales
activity for the quarter.
As a result, the median unit sale price was down slightly
by 1.4 per cent to $345,000.
RENTAL MARKET
In the REIQ residential rental survey for September, Gold
Coast agents reported strong tenant demand and low
supply levels.
As a result the vacancy rate tightened to 1.7 per cent. The
region has remained below 2.5 per cent (considered the
lower end of the healthy range) for two years.
Despite this consistently limited vacancy rate, median
rental prices have remained in check. According to the
RTA’s September quarter figures, median weekly rents
remained relatively unchanged.
19. 19
REGIONAL MARKET UPDATES
SEPTEMBER QUARTER 2015
TOOWOOMBA
HOUSE PRICEPOINTS
1,194
1,412
628
18
1,265
1,508
652
29
<$350k $350k+ $500k+ $1m+
BRISBANE SURROUNDS HOUSE SALES (p)
JUN 15 SEP 15
INCLUDES IPSWICH, LOGAN, MORETON BAY & REDLAND
55
557
698
119
44
567
776
139
<$350k $350k+ $500k+ $1m+
GOLD COAST HOUSE SALES (p)
JUN 15 SEP 15
163
43
8
166
42
7
<$350k $350k+ $500k+
BUNDABERG HOUSE SALES (p)
JUN 15 SEP 15
15
<
211
71
14
203
78
13
<$350k $350k+ $500k+
FRASER COAST HOUSE SALES (p)
JUN 15 SEP 15
48
52
14
57
45
8
<$350k $350k+ $500k+
GLADSTONE HOUSE SALES (p)
JUN 15 SEP 15
R
114
740
1,997
318
124
755
2,126
333
<$350k $350k+ $500k+ $1m+
BRISBANE CITY HOUSE SALES (p)
JUN 15 SEP 15
215
163
56
233
200
59
<$350k $350k+ $500k+
TOOWOOMBA HOUSE SALES (p)
JUN 15 SEP 15
70
431 427
58
92
437
477
42
<$350k $350k+ $500k+ $1m+
SUNSHINE COAST & NOOSA HOUSE SALES (p)
JUN 15 SEP 15
UNIT PRICEPOINTS
79
352
890
490
6181
391
1026
548
75
<$250,000 $250,000+ $350k+ $500k+ $1m+
BRISBANE CITY UNIT SALES (p)
JUN 15 SEP 15
269 286
173
70
7
235 246
203
65
4
<$250,000 $250,000+ $350k+ $500k+ $1m+
BRISBANE SURROUNDS UNIT SALES (p)
JUN 15 SEP 15
INCLUDES IPSWICH, LOGAN, MORETON BAY & REDLAND
195
542
471
234
33
265
678
555
337
55
<$250,000 $250,000+ $350k+ $500k+ $1m+
GOLD COAST UNIT SALES (p)
JUN 15 SEP 15
74
209 221
127
28
76
220 217
137
22
<$250,000 $250,000+ $350k+ $500k+ $1m+
SUNSHINE COAST & NOOSA UNIT SALES (p)
JUN 15 SEP 15
27
12
6
2
13
15
2 1
<$250,000 $250,000+ $350k+ $500k+
BUNDABERG UNIT SALES (p)
JUN 15 SEP 15
20
<$2
32
28
9
3
43
15
3 3
<$250,000 $250,000+ $350k+ $500k+
FRASER COAST UNIT SALES (p)
JUN 15 SEP 15
8
9
3
1
3
4
3
0
<$250,000 $250,000+ $350k+ $500k+
GLADSTONE UNIT SALES (p)
JUN 15 SEP 15
3
<$
<
<
31
44
14
4
31
60
18
7
<$250,000 $250,000+ $350k+ $500k+
TOOWOOMBA UNIT SALES (p)
JUN 15 SEP 15
LAND PRICEPOINTS
34 38 36 33
20
70
58
28
<$250,000 $250,000+ $350k+ $500k+
BRISBANE CITY LAND SALES (p)
JUN 15 SEP 15
449
100
44
8
464
100
29
3
<$250,000 $250,000+ $350k+ $500k+
BRISBANE SURROUNDS LAND SALES (p)
JUN 15 SEP 15
Includes IPSWICH, LOGAN, MORETON BAY & REDLAND
98
38
6
17
111
36
13 14
<$250,000 $250,000+ $350k+ $500k+
GOLD COAST LAND SALES (p)
JUN 15 SEP 15
70
61
55
SUNSHINE COAST & NOOSA LAND SALES (p)
JUN 15 SEP 15
53
5 1
78
1 1
<$250,000 $250,000+ $350k+
FRASER COAST LAND SALES (p)
JUN 15 SEP 15
22
GLADSTONE LAND SALES (p)
JUN 15 SEP 15
46
2 0
54
4
1
<$250,000 $250,000+ $350k+
TOOWOOMBA LAND SALES (p)
JUN 15 SEP 15
36
1 1
41
0 0
<$250,000 $250,000+ $350k+
BUNDABERG LAND SALES (p)
JUN 15 SEP 15
After two quarters of easing buyer activity, the Toowoomba
market bounced back in the September quarter.
The outlook for the region remains very positive with a
number of major projects either under way or planned.
The second range crossing project has been greatly
anticipated throughout the region and the project
commenced construction on 7 December with the sod
officially turned. Project developer Nexus is limited to
hiring people from within a 70km radius and this will boost
employment and market confidence.
A multimillion-dollar abattoir is also in the planning
stage, while the QIC redevelopment in the city centre will
significantly increase the retail net lettable area.
The crane index visible across the city skyline is a clear
indicator of strong construction levels and this is creating
optimism for the market.
Progress from the Federal Government on the inland rail
from Brisbane to Melbourne that will go via Toowoomba is
another windfall for the region.
With all this in mind, Toowoomba is well positioned for
continued, stable growth both economically and in the
residential property market.
The significant property price growth of 2014 is not likely
to be repeated however there is confidence from all market
observers that consistent, stable growth will be the
trademark of the 2016 market.
HOUSE MARKET
Toowoomba’s house market is still very much in healthy
territory, however, sales volume has tapered off compared
with the previous year.
Preliminary house sales during the September quarter
lifted 13 per cent compared with the June quarter.
However, due to a very quiet first half of this year total
sales for the year to September was down 12 per cent.
Property prices held steady, with the region’s median
house price up marginally over the quarter to $353,000.
The prestige market is also holding ground with two
homes in East Toowoomba reportedly selling off-market in
excess of $1 million.
Despite houses spending a little longer on the market,
Toowoomba continues to record the shortest average days
on market for all major regional centres outside Brisbane.
Average vendor discounting has increased in line with
the increased time on market. Over-optimistic vendors
who price their property a little too high for the market are
contributing to this statistic.
UNIT MARKET
Similar to the house market, Toowoomba’s unit and
townhouse market sales activity bounced back, up 23
per cent over the September quarter compared with the
June quarter.
Townhouses continue to sell reasonably well, pushing the
median sale price up 10.7 per cent over the quarter.
Average time on market and average vendor discounting
have remained relatively consistent with that seen a
year ago, at 77 days and 4.2 per cent respectively. Listing
numbers meanwhile were marginally down, by two
per cent.
RENTAL MARKET
At the end of September Toowoomba’s vacancy rate had
improved slightly, down 0.5 percentage points to 2.7 per
cent since the end of June.
New townhouse developments popular with investors have
largely been responsible for the additional rental stock and
weekly rents have eased since the end of June.
According to local agents, however, the excess stock has
dwindled while tenant enquiry levels have already begun
to pick up, particularly for affordably priced rentals.
21. 21
REGIONAL MARKET UPDATES
SEPTEMBER QUARTER 2015
SUNSHINE
COASTThe Sunshine Coast market conditions are flourishing at
the moment, with sales activity growing steadily across
most parts of the region for the quarter.
The strength of buyer activity varies according to the
position, property type and price bracket, however
confidence in the market overall remains buoyant.
The growth in sales activity and residential property prices is
at sustainable levels, with buyer demand at healthy levels.
Local agents also feel that there is a good balance between
levels of supply and demand.
Even with the stronger market conditions local agents
report that vendors do still need to correctly market their
properties in order to create strong buyer interest and
achieve a good sales result.
Investor numbers aren’t growing significantly, which is
surprising considering the tight rental market and healthy
rental returns on offer. It’s likely the tightening of banking
lending criteria may have something to do with the low level
of investor activity.
The Sunshine Coast population is growing, attracting new
residents from interstate and overseas and local agents
believe the outlook for the region is very positive.
The region is going from strength to strength with a
multitude of developments, both infrastructure and
property, providing a boost to local employment.
HOUSE MARKET
Over the September quarter the Sunshine Coast statistical
division (SD) continued on its trajectory of growth with
sales activity up five per cent. This increase was largely
seen in the Sunshine Coast council area while Noosa
recorded a slight fall.
Property price growth has been consistent, with the
prestige end also achieving positive results. Over the
September quarter, the highest increase in buyer activity
was recorded in the $500,000-plus price point.
The median house price however remained relatively
stable over the quarter with a lift in sales in the sub-
$350,000 price point also recorded.
Well-presented and well-priced properties are selling
quickly. However, vendors who are choosing to test the
market and not present their property to its potential are
seeing their property spend longer days on market.
UNIT MARKET
The unit market performed strongly with solid interest
reported in lower-level units and townhouse complexes.
Those with low body corporate fees are also said to be
of a main priority for many buyers in this segment of
the market.
Noosa preliminary sales increase 23 per cent while the
Sunshine Coast (SD) preliminary sales numbers increased
just two per cent.
Average days on market and average vendor discounting
rates remained relatively unchanged over the year. With
increased listings, these figures indicated that buyer
demand in the unit market remained healthy.
RENTAL MARKET
At the end of September, the REIQ residential rental
survey found rental conditions on the Sunshine Coast
were very tight. The Sunshine Coast SD vacancy rate
tightened further to 1.3 per cent with the Noosa council
area and Caloundra coastal area recording the tightest
vacancy in the state with 0.9 per cent.
According to local agents, it is common for new residents
to rent before they buy when they first move to the region,
which provides the rental market with a steady influx of
new tenants.
Investors are not present in the market in significant
numbers and this hampers the supply of rental stock to
the market.
Local agents also reported a pick-up in tenant enquiry for
executive and prestige level rentals, a sector that hadn’t
been strong before now.
Although vacancy levels have been below two per cent for
some time now, median rents have not yet significantly
increased. As a result, gross rental yields have also
remained steady at 4.4 and 4.9 per cent for houses and
units respectively over the quarter.
HOUSE PRICEPOINTS
1,194
1,412
628
18
1,265
1,508
652
29
<$350k $350k+ $500k+ $1m+
BRISBANE SURROUNDS HOUSE SALES (p)
JUN 15 SEP 15
INCLUDES IPSWICH, LOGAN, MORETON BAY & REDLAND
55
557
698
119
44
567
776
139
<$350k $350k+ $500k+ $1m+
GOLD COAST HOUSE SALES (p)
JUN 15 SEP 15
163
43
8
166
42
7
<$350k $350k+ $500k+
BUNDABERG HOUSE SALES (p)
JUN 15 SEP 15
153 1
<$350
211
71
14
203
78
13
<$350k $350k+ $500k+
FRASER COAST HOUSE SALES (p)
JUN 15 SEP 15
48
52
14
57
45
8
<$350k $350k+ $500k+
GLADSTONE HOUSE SALES (p)
JUN 15 SEP 15
227
<$
75
<
133
<
ROCK
114
740
1,997
318
124
755
2,126
333
<$350k $350k+ $500k+ $1m+
BRISBANE CITY HOUSE SALES (p)
JUN 15 SEP 15
215
163
56
233
200
59
<$350k $350k+ $500k+
TOOWOOMBA HOUSE SALES (p)
JUN 15 SEP 15
70
431 427
58
92
437
477
42
<$350k $350k+ $500k+ $1m+
SUNSHINE COAST & NOOSA HOUSE SALES (p)
JUN 15 SEP 15
33 55
<$250,000 $250,000+ $350k+ $500k+ $1m+
74
209 221
127
28
76
220 217
137
22
<$250,000 $250,000+ $350k+ $500k+ $1m+
SUNSHINE COAST & NOOSA UNIT SALES (p)
JUN 15 SEP 15
<
<
(p) Preliminary. See explanatory notes for further information. Source: REIQ, data provided by CoreLogic RP Data.
100
44
8
100
29
3
<$250,000 $250,000+ $350k+ $500k+
98
38
6
17
111
36
13 14
<$250,000 $250,000+ $350k+ $500k+
GOLD COAST LAND SALES (p)
JUN 15 SEP 15
70
36
21
7
61
55
14
9
<$250,000 $250,000+ $350k+ $500k+
SUNSHINE COAST & NOOSA LAND SALES (p)
JUN 15 SEP 15