2020: The Remarkable Rise of Queensland Real Estate
The latest quarterly data for Queensland property prices (September-December 2020) has confirmed what buyers and sellers already know — prices are rising across Queensland. In fact, figures released by the Real Estate Institute of Queensland (REIQ) via its latest issue of the Queensland Market Monitor show property prices increased by an impressive 6.1% over the quarter across almost every region of Queensland in the final three months of 2020.
“As a result of the COVID-19 pandemic, we’ve seen Queensland’s property market perform in ways that go against every economic prediction made over the last 12 months,” says Antonia Mercorella, CEO of the REIQ. “In fact, Queensland property has remained extremely stable, recording a steady rate of growth that’s really strengthen its market appeal. Between record-low interest rates, low stock availability for sale, improvements in consumer sentiment and Queensland’s unbeatable lifestyle, it’s no surprise we’ve also seen broader increases in values month on month in 2021.”
With the highest level of sales across the quarter recorded in Brisbane (13,085), Gold Coast (7,617) and Moreton Bay (6,565), our state capital also reached a new record median house price of $725,000 (5.8% annual growth) for 2020. Furthermore, with monthly increases of 0.9% and 1.5% in January and February 2021 respectively – the latter represents the steepest rise since November 2007 when the monthly growth rate was 1.72%. The result is also an increase in the median price across Greater Brisbane’s most affordable regions, with houses now valued at a median of $544,900 while the median unit price is $391,800 (the highest on record for both categories).
Brisbane also ushered in six new million-dollar suburbs at the close of 2020, with most recording impressive annual growth results. These included Bardon ($1,062,000 @ 17.2%), Graceville ($1,012,500 @ 12.8%), Grange ($1,017,500 @ 6.0%), Rochedale ($1,033,750 @ 6.0%), West End ($1,115,500 @ 14%) and Yeronga ($1,085,000 @ 28%).
“While Brisbane continues to strengthen, it’s equally pleasing to see Queensland’s regional markets outperforming our capital city with wide spread property demand and price increases recorded across most areas,” continues Ms. Mercorella. “At the tail-end of 2020, the Sunshine Coast remains the shining star of the Queensland property market. Not only has the Sunshine Coast achieved strong property price growth for houses at 7.7% over the year but the unit market is also firing albeit slightly stronger at 8.0%.”
With the Sunshine Coast firmly positioned at the top of the property ladder, it’s no surprise to learn that Noosa retained its title for the most expensive housing market in Queensland, achieving 15.4% growth to achieve a recording-breaking median house price of $900,000. Meanwhile units increased by 14.3% to achieve a record-breaking median unit price of $710,000.
“What’s helping propel property prices in particular is the fact that interstate migration is so strong,” adds Ms. Mercorella. “ In fact, the Sunshine Coast, along with the Gold Coast, have been top destinations for internal migration for years now. And with minimal international migration at present, that internal movement is really benefiting our markets relative to other parts of the country.”
Further analysis of the data also shows the fast-tracked regional property rush currently sweeping across Queensland is evident. For example, the figures reveal that out of 56 regional Local Government Areas (LGAs), 52 show positive annual growth, representing 93% of the State’s regional market. These locations are benefiting from the exodus to more affordable lifestyles, with 2020’s top-performers including Cloncurry (36.2%), Murweih (30.4%) and Isaac (25.0%).
Gladstone was the largest best-performing regional LGA with a median house price of $300,000 thanks to a strong finish of 9.1% growth for the year. This represents a total gain of 83.8% in reclaimed value from Gladstone’ median house price five years ago of $365,000. Meanwhile, the Gold Coast placed third with the most expensive median house price ($658,250) behind Noosa and Brisbane, with Currumbin Valley recording the highest annual house growth for 2020 (42.7%). And, Toowoomba also ranked third place for strongest unit growth behind Noosa and the Sunshine Coast, achieving 9.6% annual growth to reach $299,000, with East Toowoomba recording the highest annual unit growth for 2020 (a phenomenal 79.1%!).
“With positive economic results ushering in a New Year, Queensland is shaping up to be a strong bet for investors, with properties from the Gold Coast to the Sunshine Coast selling fast and on a solid foundation for capital growth in 2021,” says Ms. Mercorella. “When you consider Queensland’s unique attributes and market characteristics combined with historically-low interest rates, surging consumer confidence, and billions of dollars in infrastructure investment, and the scene is set for some of the strongest property growth we’ve seen in a very long time.”