Speculation surrounding the health of the Queensland property market may have been too quick to diagnose it as in decline, with the latest quarterly sale results showing many areas still in a growth phase.
Property prices continue to rise across Queensland, albeit at a more modest pace, according to quarterly median sales results released by the Real Estate Institute of Queensland (REIQ) on Thursday (25 August).
The June 2022 quarter (April – June 2022) revealed that Queensland’s median house prices rose by 3.61 per cent, while median unit prices still inched up by 1.59 per cent.
REIQ CEO Antonia Mercorella said the latest quarterly results showed Queensland’s soaring property market growth has started to show signs of calming.
“You only need to take a look at the rate of price growth over the past year, with some areas achieving an incredible 20-30 per cent growth year on year, to realise the property market couldn’t keep up that accelerated pace forever,” Ms Mercorella said.
“This quarter we’re still seeing healthy growth in most major markets, but at a more sustainable level, as Queensland’s property market appears to finally have caught up on the growth it was well overdue for.
“What this means on the ground is that the property buying frenzy has relaxed, allowing a slower, more considered approach from buyers which is evidenced by longer days on market.
“Our member agents tell us that demand for property is still energised due to low levels of supply and continued demand, but that there’s price points and property characteristics that buyers are pursuing, including a renewed interest in units and townhouses.
“Honestly, it’s good to see some sense of calm returning to the market, taking buying activity from madness to measured, where both agents and buyers can take a breath.
“The rise of risky behaviours such as buying sight unseen, impossibly short settlement periods, and waiving cooling off periods are hopefully behind us now.”
Ms Mercorella said Queensland’s property market remained resilient despite recent hits to hip pockets and borrowing constraints.
“Consecutive interest rate rises and inflation are seeing households tightening their belts, however this is against the backdrop of very low unemployment, pent up wage growth expectations, continued high interstate migration, an extremely tight rental market, and the return of international migration further boosting our state’s population,” she said.
“These are all factors that will buoy Queensland property prices, and should give buyers confidence in investing in our state.
“We know that smart property investment is about the long-distance run rather than a short sprint, but there’s no doubt that property owners have lapped up Queensland’s extraordinary growth spurt.
“What the Queensland property market has proven over the years is that it pays to get your foot in the market and be in the race.”