The Queensland property market is blazing with dozens of suburbs recording double digit growth in the December quarter, pushing home prices up by hundreds of thousands of dollars in some pockets.
Exclusive PropTrack analysis revealed prices soared by up to 23 per cent in Queensland’s best performing markets last quarter, while 237 markets recorded growth of 10 per cent or higher.
Taking out the top spot was the Sunshine Beach house market, where the average cost of a detached dwelling in the Sunshine Coast suburb surged by $527,621 from $2.341m to $2.879m in just three months, up 23 per cent.
In second place was the unit market in Logan Central, with prices up 19 per cent quarter-on-quarter, followed by the Little Mountain unit market, up 18 per cent.
The home at 31 Small St, Teneriffe, is for sale for offers between $3.4m and $3.6m in a market experiencing strong growth. Picture: Michael McQueen
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The house market in the outback town of Healy was the state’s fourth best performing market last quarter, with house values up 16 per cent.
The house markets in Robertson and Gailes tied for fifth spot after recording quarterly price growth of 15 per cent.
While values were up 14 per cent in the Hillcrest, McDowall, Woodridge, Southside and Waterford West unit markets, and Kairabah, Drewvale, Dayboro, Dinmore and Underwood house markets.
PropTrack senior economist, Anne Flaherty said nationally, the majority of the markets experiencing strong growth were more affordable areas, especially those with prices below $800,000.
“Affordability is driving more people to cheaper suburbs,” she said.
Ms Flaherty said the demand for cheaper real estate was also the result of increased activity from investors, who tended to target units in some of the cheapest capital city suburbs.
“Investors have been coming back into the market looking for long-term growth,” she said.
“It’s quite clear that we have a housing shortage that will take a while to correct.
“Investors are seeing that population growth is strong and we are not building enough, plus there have been interest rate cuts, so there has been an expectation of long-term (value) growth.”
Ms Flaherty said areas becoming popular with investors were also the areas being targeting by first homebuyers looking to buy under the caps of the First Home Guarantee Scheme.
The scheme allows eligible buyers to purchase properties with deposits as low as 5 per cent without needing to pay pricey lender’s mortgage insurance.
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PropTrack senior economist, Anne Flaherty. Picture: Supplied
Meaghan Bakker of Ray White New Farm said the Christmas rush played a part in surging Brisbane home prices across the December quarter.
“In that final quarter of the year there is psychological hurdle of buyers wanting to purchase before Christmas,” she said.
“We had an in-room auction event on December 13 with 26 properties on the order of sale.
“We sold about 11 of them before auction and that was purely because buyers and sellers were very motivated to transact before Christmas.”
The experienced agent said in Brisbane, supply and demand remained the main driver behind strong price growth.
“For example, the demand for fully renovated, turnkey properties is extraordinary at the moment,” she said.
“The downsizer market is really strong and the majority of buyers we’re seeing in the inner city … are looking for low maintenance homes in those prestige pockets.”
Meaghan Bakker of Ray White New Farm. Picture: realestate.com.au
Ms Bakker said in the entry level market, the First Home Guarantee Scheme was increasing demand.
“That has tipped a whole load of new buyers and hasn’t necessarily tipped a whole lot of sellers in,” she said.
Ms Bakker said on the other side of the equation, there was a dearth of available stock with factors such as the 2032 Olympic Games having an impact.
“One of the reasons the market is so hot is a lot of sellers are holding onto properties because they believe there is a lot more growth to go because of the Olympics,” she said.
“Therefore there is a shortage of supply and hence why we have (such high growth) in the December quarter.”
Place One Group co-principal and auctioneer, Sam Kelso said he had noted a marked increase in interest for Brisbane units from all segments of the market.
“We’re seeing what I like to call a ‘sandwich of buyers’,” he said.
“We’ve got the younger double income, no kids and the second time buyers, but we’ve also got the older downsizers all competing for units.
“Our average registered bidders for unit auctions sits about seven or eight, and about five for a house.”
The home at 463 Pine Mountain Rd, Carindale, is for sale for offers over $2.28m as house prices in the suburb soared by 9 per cent in the December quarter. Picture: realestate.com.au
Mr Kelso said buyers were opting for units for lifestyle reasons as well as financial reasons.
“As the Brisbane market has matured, having a family in a unit or townhouse has become a common occurrence,” he said.
“People are having kids and staying in the units, and taking advantage of the beautiful Brisbane parks and weather.
“I’ve spoken to some people who bought a house and then 18 months later sold to go back to a unit or townhouse, as there isn’t any maintenance, and they don’t have to mow the lawn or take the bins out.”
Mr Kelso said there was an excess of buyers looking for units across all price points, with the sub-$1m market particularly in demand thanks to an increase in first homebuyers.
“My gut is that we’re in for double digit growth in Brisbane’s unit and townhouse market this year,” he said.
“There is not enough stock on the market for people who want to buy.”
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