Queensland’s residential property market has softened significantly, suggesting an investor revival may be on the way.
According to PRDnationwide, sales in the Sunshine State dropped 28.1 per cent in the year to December 2010, with rising interest rates and cost of living doing little to help the damaging effects of the floods and Cyclone Yasi.
But, PRDnationwide research analyst Josh Brown said historically low sales rates and increasing price discounts should help to fuel an investor rebound at the end of 2011.
“Purchasers looking at property should consider that historically low sales activity, softening capital values and increasing rental yields, form an ideal market to buy a property primed for strong returns,” he said.
The suburbs hit worst by falling sales volumes were Buderim, Deception Bay and Gympie registering a drop of 90 or more sales in the six months from July to December 2010.