It is one of the fastest growing regions in the country and now house prices in Moreton Bay are catching up, with homeowners in some suburbs pocketing double digit gains in just a few months.
Housing affordability and high levels of infrastructure spending pushed up house prices in the suburbs of Woody Point and Scarborough by a whopping 29 per cent in the September quarter.
The latest Real Estate Institute of Queensland quarterly market monitor, released exclusively to The Courier-Mail today, reveals Greater Brisbane’s housing market improved slightly over the year, while the unit market underperformed.
The annual median house price for Brisbane LGA fell 0.4 per cent for the year to the end of September to $675,000.
But many suburbs posted strong price gains, including Loganholme, where the median house price jumped 16.8 per cent, and Carindale and Indooroopilly, which saw house price gains of 13 per cent.
New Farm recorded the strongest growth in apartment prices, with the median unit price jumping more than 23 per cent in the quarter.
Unit prices in neighbouring Teneriffe also outperformed by 14.3 per cent.
“REIQ data shows that Queensland’s market remains less volatile that southern markets, providing relative stability for homeowners and investors,” REIQ CEO Antonia Mercorella said.
“Interest rates remain low and banks continue to loosen mortgage restrictions to enable more buyers to access home loans.”
Brisbane couple Renee and Jonathan Jackson are selling their three-bedroom, two-bathroom apartment in New Farm with a price guide of $1 million.
Mrs Jackson said it was a difficult decision to put the property at 10/108 Sydney Street on the market because it was “the size of a small house and opposite New Farm Park”.
She said she was surprised unit prices had increased so sharply in the suburb.
The couple are hoping to buy a house with a backyard to start a family.
“It would be lovely to be able to afford a house in New Farm, but it will depend on prices,” Ms Jackson.
“If we found a cottage we could renovate, that would be great.”
Marketing agent Aaron Woolard of Place – New Farm said he was surprised by the 23 per cent jump in the median unit price in the suburb, but had noticed a definite increase in how much buyers were prepared to pay.
“Every (unit) sale we’ve been doing recently has been a little bit above the last one in the building,” Mr Woolard said.
He said apartments were in strong demand in New Farm because there was a shortage of stock.
“There just isn’t a lot to choose from,” he said.
“Two-bedroom, two-bathroom (units) are always consistently popular, but one and two bedders are also bringing appeal.”
Terry Ryder’s Hotspotting report named the Moreton Bay region as one of the top 10 for investors to buy right now, with its proximity to the Brisbane CBD and Sunshine Coast, plus its many lifestyle attractions, proving attractive.
“This is attracting interstate migrants, first-home buyers and investors to the area, driving strong demand for housing,” it said.
“With ample land suitable for development, combined with recent changes to rezoning laws, the number of applications for residential estates has increased in the last 12 months.
“These are accompanied by construction of the $2 billion North East Business Park and a new university campus, which are creating new employment in the area.”
But Ms Mercorella said she was concerned about the state government’s proposed rental reforms, which she said had the potential to deter future investors from entering the rental market and threatened to push current investors out.
“The proposed new laws are a slap in the face to every day ‘mum and dad’ property owners who provide the majority of housing to Queensland’s renters,” Ms Mercorella said.
“If these laws come to pass, they have the potential to derail the stability of the rental market, and we are already seeing signs of this, with agents reporting an increase in inquiries from investors looking to sell their properties.”
TOP 10 BRISBANE LGA SUBURBS FOR HOUSE PRICE GROWTH IN SEPT QTR
Suburb Quarterly change in median sale price
- Carindale 13.4%
- Indooroopilly 13.3%
- Chapel Hill 12.7%
- Hendra 10.8%
- Brighton 10.6%
- Coorparoo 10.6%
- Mount Gravatt East 8%
- Calamvale 8%
- Morningside 7.8%
- Wavell Heights 7.4%
TOP 10 BRISBANE LGA SUBURBS FOR UNIT PRICE GROWTH IN SEPT QTR
Suburb Quarterly change in median sale price
- New Farm 23.1%
- Teneriffe 14.3%
- Calamvale 4.5%
- Indooroopilly 2.6%
- Clayfield 2.5%
- West End 2.2%
- Carina 1.7%
- Carina Heights 0%
- Newstead -0.2%
- Nundah -1.9%
TOP 10 GREATER BRISBANE SUBURBS FOR HOUSE PRICE GROWTH SEPT QTR
Suburb Quarterly change in median sale price
- Woody Point 29.3%
- Scarborough 28.3%
- Loganholme 16.8%
- Crestmead 11.5%
- Alexandra Hills 10%
- Hillcrest 9.7%
- Marsden 7.5%
- Goodna 6.8%
- Petrie 6.8%
- Wellington Point 6.8%
TOP 10 GREATER BRISBANE SUBURBS FOR UNIT PRICE GROWTH SEPT QTR
Suburb Quarterly change in median sale price
- Cleveland 10.7%
- Redcliffe -12.9%
- Caboolture -31%
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(SOURCE: REIQ, data obtained from CoreLogic RPData (www.corelogic.com.au). Suburbs listed are those with more than 19 sales for the quarter. Those suburbs with 19 sales or less are not included. Enquiries about the reproduction of part or all of the information should be directed to the Corporate Affairs Division, REIQ. Based on or contains data provided by the State of Queensland (Department of Natural Resources and Mines) 2019. In consideration of the State permitting use of this data you acknowledge and agree that the State gives no warranty in relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws.)
Originally published by Elizabeth Tilley in The Courier Mail HERE.