Feature Brisbane 161100

Record low interest rates and high prices, coupled with low yields, continues to strengthen the property market in south-east Queensland. The state of the Brisbane market remains steady, however, more so for houses than units.

“Affordability, sustainable growth and favourable lifestyle factors were three key factors driving southern state investors to the Queensland residential property market in the June quarter,” according to data released in the REIQ Queensland Market Monitor. However, the property market in Queensland continues to take divergent paths with the south-east corner progressing steadily and regional areas continuing to struggle due to the declining resources boom.

Agents continue to observe competition for quality dwellings within a 5km radius of Brisbane, with solid growth occurring in the last 12 to 18 months. Dwellings within 5 to 10km and greater have also experienced growth, with properties closer to public transport, quality schooling and café society naturally performing better.

According to the stats, the median growth for the last 12 months was just 3.1%. However, this includes the surrounding districts, with the rate for the inner-Brisbane ring higher at 4%. This is still greatly reduced from the 10% growth for southern Australian states. According to REIQ, the best performing suburbs over the quarter were Clayfield, East Brisbane, Sinnamon Park, Kuraby, Holland Park and Hawthorne*.

Unit prices in Brisbane have slipped during the quarter, but remain stable over the year. The number of new unit developments is still a concern in and around the CBD and fringe suburbs.

Rental vacancies remain at risk of increasing in inner locations. For the moment, the rental market remains steady with vacancy rates of 3.4% in inner Brisbane and 2.3% in the middle ring for the June 2016 quarter. Units tend to take longer than houses to find a tenant.

While interstate migration to Queensland has slowed recently, affordability is expected to increase momentum with interstate investors.

Like investors, homebuyers should invest in professional, independent and customised advice, if required, to assist with their home purchase.