Up 25pc: Interest rates fail to slow price growth in QLD’s top regions

They were once some of Queensland’s most affordable places to buy a home but record price growth has pushed many beyond reach, and soaring interest rates have failed to slow that growth.

They were once some of Queensland’s most affordable places to buy a home, but record price growth has pushed many beyond reach, and soaring interest rates have failed to slow that growth.

Exclusive data from PropTrack shows that house values in Queensland’s top 20 regional suburbs have grown by more than 82.7 per cent since 2013, with the analysis also revealing double-digit price growth since interest rates began to rise just 15 months ago.

Median house values in Tamborine have increased the most since the interest rate cycle started in May last year, up 25.7 per cent to $1.2 million, and up 156.4 per cent since 2013.

To put that into perspective, house values in Tamborine have grown by $245,346 in just 15 months since April last year when interest rates were a record low 0.1 per cent.

96-100 Riemore Circuit, Tamborine, sold for $1.712m

But it was Coral Cove in the Wide Bay region that recorded the biggest surge in prices since that first rate hike, up an eye-watering 42.2 per cent to $700,500.

163 Barolin Esplanade, Coral Cove, sold for $870,000

A decade ago, a buyer could get a home for around $383,415, while 15 months ago, a house would set you back $492,6161.

That’s a $207,884 difference in median values in well under two years.

An aerial view of Coral Cove. realestate.com.au

It is a similar story in Burnett Heads (+$120,093), Innes Park (+$144,079) Toogoom (+$137,500), Craignish (+$120,300) and Pialba ($79,829) since April last year.

159 Innes Park Road, Innes Park sold for $1.12m

Ray White Bargara principal Warren Hitzke said most of the price growth in the Wide Bay region had occurred in the past two years.

He said that while demand eased briefly after each interest rate rise, it did not take long for it to bounce back.

“It is people wanting to get out of rentals, people moving from interstate and from places like the Gold Coast and Sunshine Coast,” he said.

“There just isn’t enough land or housing stock to keep up with demand.

“Buyers are selling out of the more expensive areas and they have money to spend here, with some left in the bank.

“I’ve seen 14 year old homes without pools sell for north of $1 million.”

22 Craig Crescent, Pialba sold for $725,000

Ten years ago, buyers could get an average house in Pialba for just $265,550. Now, one will set you back $555,000 after 109 per cent growth in a decade and 16.8 per cent uplift since that first interest rate increase.

The Reserve Bank of Australia (RBA) began its assault of homeowners and inflation when it first lifted rates in May last year to 0.35 per cent.

The cash rate is now 4.1 per cent, its highest level in 11 years.

The top performing suburbs in the regions were analysed to determine not only their performance since 2013 but also their relative immunity to interest rate increases.

Wide Bay, the Gold Coast and Sunshine Coast each had six suburbs in the top 20 list, while Toowoomba had two top performing locales.

3 Tant Street, East Toowoomba sold for $690,000

The data shows that of the top 20 regions for price growth, eight have recorded value increases of more than 20 per cent in 15 months, with many of those offering more affordable stock.

Kingsthorpe in the Toowoomba region, the most affordable location on the top 20 list, has a median house price of $540,000, but that has increased 28.6 per cent since April last year.

Over the decade, Kingsthorpe house values rose 98.5 per cent, much of that since the start of the Covid-19 pandemic property boom in 2020.

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5 Lawmere Court, Kingsthorpe sold for $460,000

Similarly, Burnett Heads has a median house price of $550,000, but that’s up 28.2 per cent in 15 months, and 103.7 per cent since 2013.

On the flip side, Clear Island Waters had the highest median price on the list at $2.015 million, with values growing 162.5 per cent since 2013 and 12.9 per cent since rate hikes started.

PropTrack economist Angus Moore said regional Queensland had punched well above its weight during the pandemic property boom.

And he said that continued despite rate hikes.

”I think that shows that people are looking further afield to get a home,” he said.

“And while we don’t have the data on this, I would suggest it is likely to be younger buyers, or those with families wanting more space.”

The six Sunshine Coast suburbs were Parrearra, Buddina, Pomona, Peregian Springs, Yaroomba, and Glass House Mountains.

Buddina was the top spot for growth in all of the Queensland regions analysed, with values up 234.7 per cent since 2013 and 12.5 per cent in the past 15 months.

5 Iluka Avenue, Buddina, sold for $2.4 million

Just two of those Sunshine Coast suburbs now have median house prices below $1 million – Pomona ($990,000) and Glass House Mountains ($871,250).

The top performers on the Gold Coast were Worongary, Tamborine, Clear Island Waters, Burleigh Heads, Broadbeach Waters and Hope Island.

None have median house prices below seven figures today, with Worongary coming in the cheapest at $1.18 million after 171.3 per cent growth in 10 years and 24.8 per cent growth since April last year.

18 Glauca Street, Burleigh Heads sold for $1,111,111

East Toowoomba ($825,000) and Kingstorpe ($540,000) also made the top 20.

Of the top performing suburbs, 10 are members of the $1 million-plus club.

Regional Australia Institute (RAI) chief economist Dr Kim Houghton said the Sunshine Coast, Gold Coast and Fraser Coast had recorded some of the highest internal migration in the June quarter, from both interstate and nearby regions.

But he said there was now a “ripple effect” moving into new areas.

“Those early boom areas saw very significant inflows very early on and very significant price rises straight after,” Dr Houghton said.

“These high amenity places that people perceived as little getaways from the cities really shot up in terms of their inflows and house prices and rental prices but the housing availability waned.”

He said their Regional Movers Index (RMI) showed milliennials in particular were looking further inland for affordability and availability.

In the most recent Exodus to Affordable Lifestyle report by Hotspotting, report author Terry Ryder named Toowoomba, and nearby Lockey Valley, among his top 10 spots to watch nationally.

He said the lure of a sea-change was waning for many buyers due to unaffordability, with many now opting for a hill change or rural living.

“Its (Queensland) growth has been primarily due to individuals and families seeking a better lifestyle and affordability that is made possible through remote working that advances in technology have allowed for,” he said.