Queensland Market Monitor September 2018 | Issue 40
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Queensland Market Monitor September 2018 | Issue 40 YOUR SUBURB BY SUBURB PROPERTY GUIDE Proudly Supported by p4 Mackay well into recovery, wealth creation in Noosa Editor: Felicity Moore Author: Karina Salas REIQ Research Explanatory Notes SALES MARKET DATA “Vendor Discount” is the median difference between the contract price All figures for the most recent quarterly and yearly periods are preliminary only on a property and the first advertised price. The figure is expressed as a and subject to further revision as additional sales records become available (see percentage and is an average of all private treaty sales which sold for less Research Methodology online at reiq.com). than their initial asking price. As of the June quarter 2013, all sales data includes “Recent Sales” as advised “Total Listings” is the total unique number of properties that have been by real estate agents as well as official records as advised by DNRM. As such advertised for sale and captured by RP Data over the 12 month period. To be comparisons with figures published prior to the June quarter 2013 should be included in the count, the listings have to be matched to done with caution. an actual address. A median sale price is derived by arranging a set of sale prices from lowest to “% Stock on Market” is the percentage of dwellings within the suburb or local highest and then selecting the middle value within this set government area that have been listed for sale over the past year. (ie, the 50th percentile, where half of recorded sales were less and half were higher than the median). The market trends data changed in November 2018 to improve the accuracy of the residential property universe. Recent changes have had an impact in Only suburbs and regions to record sufficient sales numbers (at the overall counts of properties and overall listing volumes. As such, an annual least 20 sales for the quarter) at the time of reporting are published. comparison of the stock on market may not necessarily provide an accurate representation of trends. Median price changes are influenced by varying quality of properties sold. Source: REIQ, data supplied by CoreLogic N/A Due to insufficient sales numbers (as at the time of data extraction) no median sale price has been calculated. PRICE POINT GRAPHS N/D Not displayed due to price movements potentially driven by type of Some data contained within these graphs represent preliminary stock transacting. sales numbers and are subject to revision as additional sales records become available. (LGA) Local Government Area The data excludes any recent sales transactions where the (SD) Brisbane Statistical Division comprising the LGA of Brisbane City, contract sale price was not disclosed. Ipswich City, Logan City, Moreton Bay Regional and Redland City. The intention of these graphs is to gauge trends in sales activity between periods in lieu of actual final sales results and compare Sunshine Coast (SD) it with historical data. Sunshine Coast Region comprising the LGA of Sunshine Coast Regional and Noosa. Source: REIQ, data obtained from CoreLogic # Figures based upon the new council boundaries DEMOGRAPHICS INFOGRAPHICS ^ Indicates acreage sales only (with land size greater than 2400m2). Population data has been sourced from the Australian Bureau of Statistics All other data is based upon sales with a land size of less than 2400m2 and refers to December 2017. Median age and ownership structure of the dwellings has been sourced from the 2016 Census data. #1 Smallest stock on market refers to all houses for the year to August 2018. The annual median house prices refer to houses <2400m2 and for the year to September 2018. EMPLOYMENT INFOGRAPHICS The employment data for the SA4 region is sourced from the Australian Bureau of Statistics (ABS 6291.0.555.001). The data refers to the relevant ON THE MARKET INDICATORS QMM quarter. At the time of publication, latest information available was for the 12 months ending the month prior to end of the quarter reporting period. HOUSE AND UNIT MARKET INFOGRAPHICS “Days on Market” is calculated as the median number of days it has taken to Arrows denote annual trend for the relevant indicator. sell those properties sold by private treaty during the last 12 months. The calculation excludes auction listings and listings where an asking price is not advertised. The days on market calculation uses the contract date on the property compared with the first advertised date. RENTAL MARKET DATA Rental Yield Trend: All median weekly rents are published on a postcode basis, as calculated by Steady = +/- 0 to 0.3%pts the Residential Tenancies Authority, where sufficient data is available. Up = + 0.3%pts or more Down = - 0.3%pts or more Caution should be exercised when interpreting any median rental price data based upon a relatively small number of new bond lodgements. VACANCY RATES All figures are based upon all residential rentals as at the end of L Listed localities (or suburbs) represent one on potentially several that each quarterly period, as submitted by real estate agents. fall within that postcode. N/A Due to insufficient information received no vacancy rate N/A Due to insufficient new bond lodgements, no median rental price has has been calculated. been calculated Source: REIQ Residential Rental Survey Source: Residential Tenancies Authority, Rental Bond lodgements The REIQ classes rental markets into three categories, weak, healthy, or tight. These markets are classified according to vacancy rates: GROSS RENTAL YIELDS House yields are based upon median house prices and RTA median weekly 0 - 2.5% = tight rent for three-bedroom houses. 2.5 - 3.5% = healthy 3.5% - plus = weak Unit yields are based upon median unit and townhouse sale prices and RTA median weekly rent for two-bedroom units. 2 | QUEENSLAND MARKET MONITOR • SEPTEMBER 2018 / ISSUE 40 Table of Contents REIQ Explanatory Notes 2 Regional Market Updates Queensland Market Overview 4 Gold Coast 54 Capital City Comparison 12 Toowoomba 62 Overview Market Queensland Sales Market Summary 16 Sunshine Coast 68 On The Market Indicators 20 Fraser Coast 78 Total Listings Bundaberg 84 % Stock on Market Gladstone 90 Median Vendor Discount Rockhampton 96 Median Days on Market Mackay 102 Rental Market Summary 22 Townsville 108 Greater Brisbane Market Updates Cairns 114 Greater Brisbane 28 Other Regional 120 Brisbane LGA 44 Managing Editor: Research Analyst: The Real Estate Institute of Queensland Ltd. Copyright 2018 Felicity Moore Karina Salas 50 Southgate Ave, Cannon Hill Qld 4170 T. 07 3249 7300 T. 07 3249 7301 PO Box 3447, Tingalpa DC Qld 4173 E. [email protected] E. [email protected] Ph: (07) 3249 7347 Fax: (07) 3249 6211 Email: [email protected] Source: REIQ, data obtained from CoreLogic Buying a property? Research which markets have the best opportunities and get a detailed property report from Residex, now part of Corelogic. Core Logic' www.corelogic.eom.au/rp-data-professional-signature-reports QUEENSLAND MARKET MONITOR • SEPTEMBER 2018 / ISSUE 40 | 3 Queensland Market Overview EMPLOYMENT MARKET Mackay well into recovery, solid wealth creation for property owners in Noosa Unemployment Rate Editor Felicity Moore 6.1% Research by Karina Salas The Mackay residential property market delivered solid Participation Rate results this quarter, confirming its status as a rising market 66% well into recovery stage. The annual median house and unit prices in Mackay increased 5.6 per cent and 1.3 per cent for the past 12 months. A house in Mackay has an annual median price of $340,000 in September this year, recovering $18,000 in value compared to its median price of $322,000 in September 2017. DEMOGRAPHICS Owners of houses, units and blocks of land in Noosa have seen solid wealth creation over the past year. Median prices for houses, units and land increased in the range of $40,000 to $60,000 over the past year, reaching median price records of $715,000 for houses and $550,000 for units. Population Despite the gloom and boom media coverage, the Queensland rental market has strengthened again this quarter, showing a gradual and sustainable increase in 4,965,033 demand for rental accommodation. The rise in rental demand has been a key driver of the general tightening of Median age vacancies, with Queensland having more tight markets and fewer weak markets 37Yrs compared to the previous quarter. The key findings of the state’s residential property market for the September 2018 quarter: % owner-occupied dwellings with a • The Queensland rental market absorbed 21,125 new rentals for the past year, mortgage representing an annual growth in rental demand of 3.7 per cent. About 6200 new 33.7% rentals reached a lease agreement over the September quarter. • Many house markets analysed in the Queensland Market Monitor have experienced tougher market conditions wherein supply is on the rise and demand % owner-occupied is slowing down. The exceptions were the house markets in Gladstone and dwellings mortgage- Mackay and the unit markets in Fraser Coast and Townsville. All of them reported free an annual increase in sales volumes over the past year. 28.5% • As a quiet and reliable achiever, the Brisbane house market has not disappointed property owners, with the annual median house price reaching a new high of $675,000 in September this year. % rental dwellings • The Brisbane LGA unit market remained subdued as the annual median price fell 34.2% 2.2 per cent. • The Brisbane LGA rental market tightened for a second consecutive quarter to 2 per cent, operating at a tighter level than many outer Brisbane regions. • The Gold Coast house and land markets performed well. However, the unit performance was weak as demand (measured by the annual sales volumes) fell about 20 per cent for the past year.