State of Markets - QLD May 2012

QUEENSLAND

Investor enquiry picks up on Gold Coast

Investors seeking higher rewards should look to southeast Queensland this year, according to McGrath chief executive John McGrath.

“We’re already seeing more activity on the Gold Coast, with investors coming from the local area,” Mr McGrath said.

Units across the Gold Coast have a median price of $370,495, while houses sit at $553,589.

“Markets like the Gold Coast and Sunshine Coast were significantly oversold during the global financial crisis and depending on the level of mortgage sales over the next 12 months, should have a very strong upside when they begin a real recovery, either this year or in 2013.”

The Gold Coast high-end market has suffered some of the worst price falls in the last few months.

Units, townhouse markets on the mend: REIQ

Both the Queensland unit and townhouse markets – including the Gold Coast – are beginning to heal, with first home buyers and investors showing renewed interest, according to the Real Estate Institute of Queensland (REIQ).

“As we move into 2012, REIQ-accredited agencies are reporting healthier levels of enquiry with first home buyers and investors especially taking a keen interest in the more affordable unit and townhouse market,” REIQ said, following the release of its December 2011 quarter property report.

Unit and townhouse prices in the quarter rebounded in most areas of southeast Queensland. Only the Sunshine Coast (down 4.4 per cent on the previous quarter) and Logan City (down 0.9 per cent) reported lower median prices.

The softening of prices over the past two years, as well as low interest rates, is partially behind this demand, REIQ said.

Commenting on the broader market, Lane Russell, a joint director at PRDnationwide Burleigh Heads, said these numbers have not been recorded since before the global financial crisis.

“Interest rate drops have brought buyers forward and boosted confidence,” he said.