The latest Queensland Market Monitor from the Real Estate Institute of Queensland (REIQ) reveals that almost every region saw property prices rise by more than 6 per cent over the December 2020 quarter.
According to REIQ CEO Antonia Mercorella, the increase in values across the state, which has continued into 2021, comes off the back of record-low interest rates, low stock availability for sale, improvements in consumer sentiment and “Queensland’s unbeatable lifestyle”.
“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,” Ms Mercorella commented.
Unlike other major capital cities, Brisbane thrived throughout the pandemic, even recording the highest level of sales across the state over the quarter — at 13,085. This was followed by the Gold Coast with 7,617 and Moreton Bay with 6,565.
The state capital also reached a new record median house price of $725,000 in 2020, finalising annual growth for 2020 of 5.8 per cent.
In 2021, prices have already seen increases of 0.9 of a percentage point and 1.5 per cent across January and February, respectively, with the latter being the steepest monthly rise since November 2007 when the monthly growth rate was recorded at 1.72 per cent.
It means greater Brisbane’s houses are valued at a median of $544,900 while units have a median of $391,800 — the highest on record for both categories, the report noted.
By the end of 2020, Brisbane had six new million-dollar suburbs, including Bardon with a median price of $1,062,000 and an annual growth rate of 17.2 per cent, Graceville with $1,012,500 and 12.8 per cent, Grange with $1,017,500 and 6 per cent, Rocherdale with $1,033,750 and 6 per cent, West End with $1,115,500 and 14 per cent and Yeronga with $1,085,000 and 28 per cent.
While the Brisbane property market held its own during the COVID-19 period, Queensland’s regional markets still outperformed the capital city as demand continues to strengthen and prices soar in most areas, according to Ms Mercorella.
Over the year, the Sunshine Coast remained one of the strongest performers in the Queensland property market, achieving a 7.7 per cent price growth for houses and 8 per cent for units.
Meanwhile, Noosa retained its title as the most expensive market in Queensland, with house prices rising by 15.4 per cent to a median of $900,000 and unit prices rising by 14.3 per cent to a median of $710,000.
The Gold Coast was third most expensive, behind Noosa and Brisbane, with a median house price of $658,250.
In terms of annual house price growth for 2020, Currumbin Valley emerged as the winner with a 42.7 per cent rise.
For units, Toowoomba stood behind Noosa and the Sunshine Coast with an annual unit price growth of 9.6 per cent to a median of $299,000. East Towoomba recorded the highest annual unit growth for 2020 at a remarkable 79.1 per cent.
Ms Mercorella said that the rise in prices across Queensland’s regional markets is primarily driven by strong interstate migration.
“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,” the CEO explained.
The increasing “rush to the outer regions” and “exodus to more affordable lifestyles” as a result of COVID-19 have further fuelled growth across regional Queensland.
In fact, the report found that 52 out of 56 regional LGAs — or 93 per cent of the state’s regional market — showed positive annual growth
Among the top performers in 2020 were Cloncurry (36.2 per cent), Murweih (30.4 per cent) and Isaac (25.0 per cent).
Ms Mercorella concluded: “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.
“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, the scene is set for some of the strongest property growth we’ve seen in a very long time.”