The Sunshine State powers on as suburbs record strong growth across the board, led by the southeast region
For buyers looking to get a slice of the Sunshine State’s market, Southeast Queensland continues to be the location of choice.
“In Q3 2017, the Gold Coast scraped in with 139 surveyed sales, and 12 months later it has more than doubled with 298 recorded,” says Clinton Ostwald, national director at Urbis.
“For the smallest market of only 6,806 apartments in the pipeline, sales to owner-occupiers have been the highlight.”
In comparison, Brisbane is struggling to improve its sales figures, and properties remain on the market for a while. However, its affordability as a capital city compared to Sydney and Melbourne helps secure demand.
“You can come by Queensland – be it Sunshine Coast, Brisbane or Gold Coast – and buy two brand-new houses for the same price as what you’d get for one rundown flat in Sydney. That’s made purchasing and sell-through rates quite strong,” says Damien Lee, head of acquisitions at Caifu Property.
Strong growth statewide
According to the Queensland Market Monitor, nearly 70 suburbs logged double-digit growth in the 12 months to June 2018.
“It is a really strong result, and [Queensland] is a great market to be in at the moment. There are many more suburbs delivering strong single-digit growth,” reports Antonia Mercorella, CEO of the Real Estate Institute of Queensland.
These findings also show that, while the southeast pocket is the place to watch, it is not the only grower in the state – central and northern Queensland have been making their mark.
“The top area delivering the strongest growth has been Blackwater. This is a result of the resurgence in coal prices and the low base starting point,” Mercorella says.
Other suburbs that recorded more than 20% annual price growth were Minyama on the Sunshine Coast, Hollywell on the Gold Coast, Spring Mountain in Ipswich, Dundowran Beach on Fraser Coast, Boonah on the Scenic Rim and Idalia in Townsville.
“This spread of suburbs is a good indication that Queensland real estate is delivering steady, sustainable growth across the board. We’re seeing growth outside the southeast corner,” Mercorella concludes.
SUBURB TO WATCH
YERONGA: High prices don’t deter interest
Seven kilometres south of the Brisbane CBD, the suburb of Yeronga offers residents a place to live that is close to the vibe of the city while enjoying the relaxed atmosphere of the riverside. While the median house price is approaching $1m, steady growth in the market over the fi ve years to November 2018 shows that the suburb certainly has the demand to support these values. Meanwhile, the unit market is weaker, but generates considerable average yields of 4.7%. Yeronga sits right on the Brisbane River and is stocked with amenities for residents. On Fairfi eld Road, the suburb’s commercial centre, there are shops, cafes, bakeries, pharmacies and restaurants.
Price House: prices are close to $1m, while unit values have inched past $400,000
Amenities: Fairfield Road has everything residents need, whether that’s shopping or food