The latest data from the Real Estate Institute of Queensland (REIQ) has highlighted how the Sunshine State’s property market’s growth has begun to slow.
The June 2022 quarter saw Queensland’s median house prices by 3.61 per cent, while unit values climbed 1.59 per cent, with REIQ chief executive officer Antonia Mercorella indicating that these figures showcase that price growth has stunted from a sprint to a run.
“We’re still seeing healthy growth in most major markets, but at a more sustainable level, as Queensland’s property market appears to finally have caught up on the growth it was well overdue for,” she said.
The median house price in the state has declined slightly from $1,090,000 in the March quarter to $1,075,000 last quarter, with the state’s regional centres, which include towns such as Rockhampton, Townsville, and Bundaberg, amongst others, all experiencing modest value rises, although the median price remains below $500,000.
Additionally, four suburbs in the state capital — Mitchelton, Chermside West, Ferny Grove, and Everton Park — joined the million-dollar club, while Bulimba just broke the $2 million bracket with a median price of $2,001,550.
This subdued pace of growth has meant that the state’s property frenzy has relaxed, which Ms Mercorella believes is ultimately “allowing a slower, more considered approach from buyers which is evidenced by longer days on market”.
The president reported that demand for property remains in Queensland due to low levels of supply, but she added that there are “particular price points and property characteristics that buyers are pursuing, including a renewed interest in units and townhouses”.
On the back of the institute’s recent partnership with the RiSe Initiative that centralises on agent and property managers’ mental wellness, Ms Mercorella stated her relief that the market’s cooling has allowed both agents and buyers to take a breath.
She said that despite rising interest rates and inflationary pressures hurting buyers, the market has remained resilient, thanks to numerous factors, including “very low unemployment, pent up wage growth expectations, continued high interstate migration, an extremely tight rental market and the return on international migration”.
“There are all factors that will buoy Queensland property prices and should give buyers confidence in investment in our state.
“You only need to take a look at the rate of price growth over the past year, with some areas achieving an incredible 20-30 per cent growth year-on-year, to realise the property market couldn’t keep up with the accelerated pace forever,” she concluded.