QUEENSLAND OUTLOOK The key challenges facing local Queensland property markets are: • Vendor price adjustments to meet buyer expectations due to flat house prices, oversupply of stocks, especially for the Atherton Tablelands, Central Queensland and Wide Bay/Burnett regions, along with some parts of Brisbane proper. Vendor discounting levels for units in Brisbane are lower than this time last year and higher for houses • Consumer nervousness due to unstable global and domestic economic conditions (including rising unemployment levels and the high Australian Dollar) and rising costs of living, particularly relevant for the areas of Atherton Tablelands, Gold Coast, Sunshine Coast, Wide Bay Burnett, Darling Downs and some parts of Brisbane
RESIDENTIAL Prices Property prices in Queensland, across all sectors, are expected to be relatively steady for the majority of members, with house prices faring a little better than apartments/strata and land prices, especially in the Darling Downs and Sunshine Coast regions, and some parts of Brisbane.
Property Price Trends For Next Six Months House Prices
Apartment/Strata
Land Prices
Up
27%
7%
7%
Down
20%
29%
29%
Flat
53%
64%
64%
The main reasons cited for the flat property prices are economic uncertainty and a stagnant economy, lack of buyer confidence to capitalise on improved affordability, and, market adjustment to cater for changing conditions. The unit market is under stress from an oversupply of stock, and, land prices are suffering due to a lack of demand and increasing costs of development - including exorbitant head charges. New subdivisions about to become available in Brisbane and on the Sunshine Coast may see land prices begin to trend downwards in the second half of 2012. Brisbane dwelling prices are expected to improve slightly from their below-the-national-average property prices of $410,000 (national average $470,000), $437,500 for houses (national average $490,000) and $352,500 for units (national average $430,000).
2012 PROPERTY MARKET OUTLOOK – MID YEAR UPDATE FIRST NATIONAL REAL ESTATE
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