BRISBANE is officially considered a ‘declining market’ after three years of extraordinary price growth, and the heat has also come off on the Gold Coast and Sunshine Coast.
But there are nine regions across Queensland yet to peak, according to the latest Herron Todd White Month in Review report.
Emerald, Rockhampton, Townsville and the Whitsundays are considered ‘rising markets’, while Bundaberg, Cairns, Fraser Coast, Gladstone and Mackay are ‘approaching peak of market’.
Toowoomba is also now considered to be at its ‘peak of market’ for houses.
For units, Brisbane and Toowoomba are now considered to be at their peak, while apartment prices in Ipswich, the Gold Coast and Sunshine Coast are ‘starting to decline’.
Cairns, Emerald, Rockhampton, Townsville and the Whitsunday unit markets are ‘rising markets’ while Bundaberg, Fraser Coast, Gladstone and Mackay are approaching peak market’.
“That said, values have fallen and the culprit was interest rate rises in response to a sizeable uptick in inflation,” he said.
“Purchasers’ borrowing capacities were dramatically curtailed, so buyers had to decrease
their budgets and sellers needed to lower their expectations just to get deals done.
“Interestingly, affordability issues helped some markets outperform others. The unit market, in
particular, fared well.”
And Mr Notley said Brisbane was well-placed to withstand the headwinds this year thanks to continued migration.
HTW Gold Coast associate director Sam Gray continued rate hikes would likely put the brakes on the local market.
But he said the prestige market was holding up well, despite a slight cooling in demand from interstate buyers.
“During the days where the market was most buoyant, locals were to some degree being priced out of the market by interstate purchasers,” he said.
“Cashed up local buyers now see themselves as having a better opportunity to buy
not being in a highly competitive market.”
But in the regional markets where price increases were more subdued, their affordability is proving a key drawcard for buyers.
Up north, the northern beaches of Cairns have been described as a “hot market”, with a focus on the area between Trinity Beach and Buchans Point, while in Townsville, it is the affordable suburbs of Condon, Kelso and Burdell that have shown rising sales and median prices, according to the report.
In the Whitsundays, valuer Noelene Spurway said the market was the healthiest it had been since the GFC.
Regions held up by the resources sector are also expected to be strong, according to the report.
Article source: Queensland Property Investor