The Sunshine State’s property market has weakened across the board, but at a gentler rate than in Sydney and Melbourne
Brisbane looked to be on track for a strong recovery some time ago; however, values have been sinking recently.
Over the three months to May 2019, dwelling values slipped by 1.4%, as per CoreLogic’s Home Value Index. Negative results have been seen across both the expensive and affordable quarters of the market. Compared to a year previously, properties are much more difficult to sell now, even though Brisbane’s fall is not as noticeable as those of its more well-known peers.
“Although values have declined over the past year in Brisbane and regional Queensland, it has been a much more moderate decline than in Sydney and Melbourne,” says CoreLogic research analyst Cameron Kusher.
“Despite this fact, there has been a sharp spike in days on market, highlighting that selling conditions have become much tougher, despite values having only fallen moderately.”
In April 2018, houses took only an average of 34 days to sell; 12 months later, such properties spent an average of 60 days on the market. The story is similar for the regional market, even star performers like the Gold Coast.
“In the post-Comm Games period we’re seeing this price growth slow. Listings are rising and hold periods lengthening as sellers hang on for better offers,” explains Antonia Mercorella, CEO of the Real Estate Institute of Queensland.
The Gold Coast clung to positivity during the March 2019 quarter, but just barely, at a growth rate of only 0.8%. Nonetheless, some suburbs still have what it takes to attract buyers.
“Suburbs such as Auchenflower, Northgate, Gordon Park, Hamilton and Clayfield all delivered double-digit growth for house owners. These are areas that are in demand and have the right house at the right price for many buyers,” Mercorella says.
“And not all of those suburbs are blue-chip suburbs. In fact, there are some great, affordable suburbs that are delivering outstanding growth, proving that as long as you do your homework you can achieve strong growth at any price point.”
Overall, Mercorella believes that regional Queensland is still in a good position.
This market is moving ahead strongly, and we’re seeing consistent levels of demand. Areas such as North Lakes and Caboolture are facing strong population growth, and these areas offer buyers great value, affordability and amenity.”
SUBURB TO WATCH
HOLLYWELL: Prices take a tumble in northern Gold Coast suburb
A coastal suburb in the northern region of the Gold Coast, Hollywell reported positive growth in the May 2014–16 period, but in the year to May 2019 the values of both houses and units plummeted.
House prices dropped by 10.5% to a median of $713,629, while unit values slid to $687,075 following a decline of 13.2%. Rental rates also fell by 6.6% and 8.4% to $598 and $600 per week, respectively.
Hollywell’s parklands are a wonderful place for picnics and outdoor recreation, and neighbouring suburb Paradise Point offers amenities such as sports facilities, a monthly arts and crafts market and a shopping hub.
Location: Residents have access to various amenities in neighbouring Paradise Point
Affordability: With Hollywell’s property market sliding, buyers can negotiate strong discounts