Queensland’s ‘two speed’ economy will mean the state’s residential recovery will occur in the medium, rather than the short term, according to new forecasts from CB Richard Ellis.
CBRE’s latest South East Queensland Residential MarketView highlights business confidence and healthy employment forecasts for the state’s resource-related sectors while other key industries in Queensland remain under significant trading pressure.
CBRE’s regional director, residential mortgage valuations, Tom Edwards, said the lag in mining-related growth after the GFC meant buyer optimism had been falling in most residential price brackets across south east Queensland, given cost of living pressures and concerns about rising interest rates.
“This has led to falling sales volumes, extended marketing periods and minimal demand across the region,” Mr Edwards said.
“Earlier observations we made concerning value impacts have been maintained, with discounts of 30 to 40 per cent on underlying land values being recorded for properties with inundated dwellings.Minor discounts from 5 to 20 per cent have meanwhile occurred for properties that were not as heavily impacted,” he said.