Home price growth easing but QLD still nation’s top performer

A new report has revealed that Australia’s bonkers property market is easing, but regional Queensland continues to be among the top performers. How does your region rate?

A new report has revealed that Australia’s bonkers property market is showing further signs of easing, but regional Queensland continues to be among the top performers.

While dwelling prices nationally rose 0.34 per cent in March, they rose 0.49 per cent in Brisbane and 0.68 per cent across Queensland’s combined regions, according to the new PropTrack Home Price Index, released by REA Group today.

That March growth, in both Brisbane and regional Queensland, was stronger than Sydney (+0.32%), Melbourne (-0.02%), Hobart (+0.19%) and Canberra (+0.35%).

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But the Sunshine State’s blistering price growth is also showing signs of slowing, according to the report, Australia’s first monthly revised property price index.

PropTrack Economist and report author Paul Ryan said the regional Queensland market was slowing at a similar pace to Brisbane.

“But it will continue to outperform other markets because all of the reasons people have been moving to Queensland are likely to persist,” he said.

“We’ve seen that big boom on the Sunshine Coast and Gold Coast in particular, but it hasn’t been isolated to those parts of Queensland.”

Realestate.com.au economist Paul Ryan. Supplied

Up north, Cairns recorded growth of 0.44 per cent in March on the back of 16.65 per cent growth over 12 months.

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Aerial view of Trinity Beach, on the northern beaches of Cairns. Picture: Brendan Radke

Townsville had slightly stronger price growth, up 0.46 per cent in March after recording annual growth of 9.73 per cent.

Ray White’s Julie Mahoney said 0.46 per cent growth was a strong result given that Townsville had come off a low base.

“In 2016, Townsville was on its knees,” she said. “Now, vacancy rates are at record lows, the unemployment rate is down, the population is growing.

“We didn’t have the dizzying price growth that some suburbs did down south, we had more of a sustained growth.”

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Down south, the Gold Coast, which saw an eye-watering 28.73 per cent growth in values over the year, recorded a 0.76 per cent rise in values during March.

Connor Malan of Ray White Mermaid Beach, who covers many of the areas where prices soared the most during the pandemic, said that the buying frenzy had dissipated in recent months.

He said locals suffering from buyer fatigue were taking a step back from the market, or, at the very least, were being more discerning about what they buy.

“There have been fewer sales, but prices are still really up,” he said.

“Buyers looking for a quality property or one in a good position remain aggressive and are paying top dollar, keeping sale prices high.

“It is for more average properties that things have slowed.

“Buyers at this level are making more logical decisions and are taking the emotion out of the sale.”

An aerial view down the beaches of the Gold Coast

The Sunshine Coast, which has been a magnet for cashed-up celebrities and well-heeled business types, continues to be the nation’s star performer, with median dwelling prices up 0.79 per cent in March and 30.7 per cent over 12 months.

There, the median dwelling value is now $832,000, with the Sunshine Coast proving to be the strongest market in Australia.

Tom Offermann Real Estate principal Tom Offermann, whose agency has handled some of the Sunshine Coast’s biggest sales, said there were still a “backlog of buyers” just waiting to sell interstate or for the right property to become available.

He said the agency’s average sales price was $3.3 million, but five beachfront properties sold for in excess of $10 million last month alone.

“Elevated sales activity during March convincingly established that the market remained on a firm footing with the backlog of buyers matching the low but steady stream of listings coming onto the market,” he said.

Karl Stefanovic’s Sunshine Beach holiday house is on the market. Supplied.

Mr Ryan said southeast Queensland would likely continue to outperform other parts of the country.

But he said prices were slowing as buyers weighed up future interest rate rises.

“Buyers should be building into their budgets the likelihood of mortgage repayments increasing,” he said.

“Buyers can look in more non-traditional areas for value or affordability, but they kind of already have.”

To find out more about PropTrack Home Price Index methodology and FAQs visit https://bit.ly/3uKzdfk