Brisbane house sales stabilise after rates buffeting

Melissa Ketchell

HOUSE sale numbers are clawing their way back as Brisbane prices stabilise against the onslaught of higher interest rates.
But even though Brisbane looks set to escape some of the dramatic price fluctuations of southern states, the property market still faces challenges.

Figures released today by the Real Estate Institute of Queensland reveal a flat market, with the Brisbane median stagnant at $535,000 in the March quarter.

There was a modest increase in the number of sales.

But property experts say this week’s interest rate reprieve will not be enough to keep the market climbing.

They say the full effects of the most recent rises have yet to be felt. And, as the State Government launches an incentive scheme for new homebuyers in regional areas, the lion’s share of sales in the state remained for houses priced at less than $500,000.

More than two-thirds of house sales in the three months to March, were for sub-$500,000 properties. Brisbane’s median house price remained flat at $535,000 during the March quarter, as did the Gold Coast at $510,000. The Sunshine Coast posted a 1.1 per cent rise to $480,000.

While preliminary sales activity increased slightly over the March quarter, the Real Estate Institute of Queensland said its agents are now reporting less demand from buyers.

REIQ managing director Dan Molloy said six interest rate increases in seven months had put the brakes on the market, with agents reporting significantly less activity since Easter.

Brisbane recorded a 6 per cent increase in property sales based on preliminary data. Over the same time, activity in the Moreton Bay region was up 9 per cent.

The Gladstone region posted the strongest result with a median house price increase of 7.9 per cent to $383,000.

Mr Molloy said that after the drop-off in grant-fuelled first-home buyer numbers, the market was returning to more usual patterns.

Sales numbers to second and third buyers had increased as demand for entry-level homes fell. Mr Molloy said it was the second consecutive quarter of more traditional demand.

Over the year, Fig Tree Pocket notched a 38 per cent rise in the median of $835,000.

The Grange had a 24.9 per cent increase ($743,000), Karalee 20.7 per cent ($540,000), Wilston 18.5 per cent ($847,500) and Thorneside 16.3 per cent ($449,750).

*Article Sourced from: http://www.couriermail.com.au/property/brisbane-house-sales-stabilise-after-rates-buffeting/story-e6frequ6-1225875689282?from=public_rss

Brisbane has least affordable homes after Perth

by Stefanie Balogh

BRISBANE has the nation’s least affordable homes after Perth, with nine out of 10 city dwellers paying over-the-top house prices.
One in five Queenslanders on moderate incomes buy homes within their means but when it gets to Brisbane just 9.8 per cent of houses are affordable.

This cost of living squeeze is detailed in a series of new reports out today and backs up what many Queenslanders are feeling.

Brisbane is second only to Perth, which has just 5.5 per cent home affordability.

The Council of Australian Government’s (COAG) Reform Council’s first baseline performance report compiles data for all state and territory governments and the Federal Government.

It measures them on their performance in key areas such as housing affordability.

The report says that in Brisbane “the typical home price was the same as Sydney” but there was less diversity in the market and “income levels were much lower than in Sydney”.

It says the typical house price in Brisbane of $340,000 was much higher than the affordable home price of $270,000, according to 2007-08 previously unpublished Australian Bureau of Statistics data.

A moderate weekly income is defined as $1545 a household before tax is paid.

The Reform Council argues that benchmarking how well the states do on health, housing, indigenous and disability results is hard because much of the data is out of date or lacking in quality.

“At present there are significant limitations in the availability of data across all four areas . . . We’ve urged COAG to address these gaps so that we can accurately compare and assess year-on-year changes,” COAG Reform Council chairman Paul McClintock said.

The report, which independently assesses the states against COAG national agreements, also found Queensland had the shortest waiting times for elective surgery in 2007-08 with a wait of 27 days compared to the national average of 34 days.

In the same reporting period, two million Australians went to hospital emergency departments with illnesses that could have been treated by GPs. This was 40 per cent of all those in emergency departments.

And the report found that in 2007-08 about one-quarter of Australian adults were obese, and Queensland rates for lung, bowel and cervical cancer, and melanomas were significantly higher than elsewhere in the nation.

*Article sourced from: http://www.couriermail.com.au/property/brisbanes-has-least-affordable-homes-after-perth/story-e6frequ6-1225875210766?from=public_rss

Brisbane market trails the nation as Sydney and Melbourne prices surge

Melissa Ketchell

THE gap between Brisbane house prices and those in southern states is widening as Sydney and Melbourne prices surge.
Australian Property Monitors Matthew Bell said Brisbane’s lower median price made the market more susceptible to interest rate rises.

Latest data shows residential sales in Brisbane are down 10 per cent, compared with increases of around 15 per cent in southern states.

ABS statistics released on Monday showed Brisbane had the lowest price increase of any capital city, with 2 per cent. The national average was 4.8 per cent, with 5.3 per cent in Sydney and 6.7 per cent in Melbourne.

Global funds manager Rismark chief executive officer, Christopher Joye, said most states had seen good capital growth despite lacklustre housing finance flows.

“This implies that underlying demand and supply-side fundamentals are driving Australia’s housing rebound, as opposed to simply credit,” Mr Joye said.

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Property commentator Michael Matusik said there were several reasons Brisbane’s growth was lagging.

He said low employment growth had hit confidence in the Brisbane market.

“The continuation of the (first-home buyers) boost by the State Government in Victoria in particular is lifting prices there,” Mr Matusik said.

He said in Sydney and Melbourne a high proportion of deals at the upper end of the property market was also impacting on median prices.

Back in Brisbane, a high rental vacancy rate of around 3 per cent was a concern for local investors.

But Australian Property Monitors economist, Matthew Bell, still thinks Brisbane and Perth will see price growth this year.

*Article Sourced from: http://www.couriermail.com.au/property/brisbane-market-trails-the-nation-as-sydney-and-melbourne-prices-surge/story-e6frequ6-1225862259961?from=public_rss