CONTRIBUTED BY THE REAL ESTATE INSTITUTE OF QLD (REIQ)
Queensland’s resilient property market appears to be defying the downturn being seen in southern states, with median house prices still climbing 3.23 per cent and median unit prices rising 2.17 per cent in the first quarter of 2022, as released by the Real Estate Institute of Queensland (REIQ).
REIQ CEO Antonia Mercorella said Queensland’s property market performed positively yet again in the March 2022 quarter (January – March 2022), and the stage was still set for continued growth.
“Over the past two years, the story of Queensland’s property market has been an extraordinarily positive one from a seller’s perspective, and the latest quarterly data tells us the Sunshine State market is still a rising star,” Ms Mercorella said.
“The first quarter of 2022 has been fraught with disruptions such as COVID-19 outbreaks, the flooding disaster, the string of long weekends including the standstill of Easter, the looming Federal election, and signs pointing to an interest rate rise, with some banks adjusting early in anticipation.
“Despite all of these disruptive events which may have caused some buyers to hit pause on their search, the market has continued to deliver healthy growth, and I’m sure the median prices reached this quarter will take some of us by surprise.
“For instance, Brisbane (LGA)’s median house price has cracked a million dollars this quarter, and while this may be sombre news for some, this still represents relative affordability compared to southern states, and arguably our capital city has been long overdue for its time in the sun after years of steady, but modest, growth.
“What’s pleasing about the latest results is that, again, it’s not just our capital city performing – our regional centre property markets and communities also continue to benefit from a growth uplift.
“Of course, it can be easy to be disillusioned and discouraged as a buyer watching these prices reach new heights, but it’s important to remember these are median sales figures over a relatively short period of time and there are always more affordable options in areas with a million-dollar median – so it’s worth doing your research before assuming an area or suburb is out of your reach.”
Ms Mercorella said ‘crystal ball’ predictions of where Queensland’s property market is headed are always prevalent but haven’t always proven to come to fruition.
“Our state still has all the fundamental ingredients for continued growth – a booming population, very low supply, strong and cashed-up buyer demand, relative affordability and low interest rates,” she said.
“So even as we face more interest rate rises, we expect this will take time to noticeably impact buyer’s pockets and sales prices, and in the meantime, the clear supply shortage will continue to tip the scales in favour of sellers, as buyers compete to secure a property.
“We expect there will also be buyers who have been waiting in the wings, who may decide that now is the right time to swoop while they can still secure low fixed rates. Certainly, with how incredibly tight the rental market is, transitioning to ownership would be increasingly appealing to renters.
“We recognise that at some stage the rate of growth we see in Queensland will start to level and stabilise, simply because it would be difficult to sustain this level of accelerated growth – but for now, there’s still plenty of wind in the sails of Queensland’s property market.”
