Historically low interest rates delivered a crucial boost to buyer confidence in Southeast Queensland, Toowoomba and Cairns last year, with these areas being the best performing in Queensland, according to fresh data released over the weekend by the Real Estate Institute of Queensland.
REIQ CEO Antonia Mercorella said the strengthening sales volumes were converting to increased property values across the southeast in 2014 compared to the previous year. “Among the strongest performers in the southeast were the Gold and Sunshine Coasts, with both regions recording increases in their median house values, up 5.3 and 7.2 per cent respectively,” said Mercorella. “The Gold Coast also was the stand out for profit making sales, with the percentage of sales to make a profit increasing by 12.2 percentage points, compared to 2013.”
Brisbane continues to record strengthening property values, with an increase of 7.6 per cent in the median house value over the year, but the two star performers were Toowoomba and Cairns,
with increases of 8.3 and 8.2 per cent respectively. “On the Fraser Coast and Bundaberg, sales volumes had eased slightly over the year, however median house values have held their own, with small increases recorded. Mercorella said the downturn in the mining sector continued to impact on the regional centres of Gladstone, Mackay and Rockhampton, with only Rockhampton to record a steady median house value. “All regions recorded an improvement in days on market compared to a year ago, except for Mackay (up 10 days) and Bundaberg (up 7 days). Rockhampton and Townsville saw their days on market stay relatively unchanged over the year,” she said.
The Brisbane LGA recorded the highest drop, with average days on market down 20 days over 2014, to 56 average days on market — which continues to make Brisbane the quickest selling region.
Average vendor discounting remained relatively stable in most parts of the state with the exception of Rockhampton, Bundaberg, Mackay and Townsville.
Mercorella said the proportion of house sales to make a profit is evidence that the Queensland residential property market continues to strengthen. “Our agents are reporting that confidence is on the rise in key Queensland real estate markets, which augers well for the rest of the year,” said Mercorella.