Source: Qld Market Monitor
Over the June quarter, Brisbane's residential market continued to record healthy growth both in sales volumes and median sale prices.
Average days on market and vendor discount remained relatively unchanged compared to the previous quarter, indicating that the Brisbane property market is improving at a sustainable rate.
Local agents say a lack of listings is still present most notably in the house market, with demand strongest in the $500,000 to $1 million price point.
The outlook for the state's capital city is positive as we move into the warmer months and the typically higher sales activity over the Spring through to Christmas period.
Over the June quarter 2015, Brisbane's median house price recorded an increase of 5.2 per cent to $610,000. This result is the strongest so far recorded since the recovery began two years ago.
While sales in the $1 million-plus bracket continue to grow steadily, price point data shows a significant trend upwards in activity in the $500,000 to $1 million segment of the house market. According to local agents bracket creep is starting to occur, due to improving house prices and the continued supply and demand imbalance.
House listings hard to come by and anything that comes onto the market in under $500,000 spends little to no time on the market.
Average days on market and average vendor discounting rates, which are calculated over the 12-month period, are yet to reflect this uplift in the market over the most recent quarter. Both of these market indicators remained relatively stable compared to the March 2015 report. However the trend of houses selling at or above the list price (which excludes them from vendor discounting statistics) is improving.
Houses are rare within the 5km ring and those that do reach the market are snapped up for more than $500,000. Meanwhile, in the middle ring suburbs properties that were once in the mid-$400,000s are now selling for more than $500,000. This is contributing to the increase in sales
in this price point and the increase in Brisbane's overall median house price.
Compared to a year ago total house listings have increased slightly, up three per cent, indicating growing confidence amongst vendors. However based upon what local agents are saying, it still remains a seller's market especially in the $500,000-plus bracket.
Over the quarter, the median sale price of units and townhouses in Brisbane remained relatively steady, up just 0.1 per cent to $425,000.
Local agents say established units in the sub-$400,000 price range have been the hardest to sell give the current level of new supply.
The unit and townhouse market is said to still be trailing that of the Brisbane house sales market in terms of price growth, with new stock continuing to come onto the market.
Despite this, sales activity over the quarter was up nine per cent with the inner ring recording the strongest increase in sales activity, up 14 per cent compared to the previous quarter.
In the middle to outer ring suburbs, local agents report units located close to public transport nodes continue to be in strong demand.
Average vendor discounting for units in Brisbane remains lower than the rate for house sales, at 4.8 per cent. While average days on market continue to remain around the 65-day mark.
As anticipated by many, Brisbane's rental market is beginning to show signs of easing tenant demand as more tenants take the opportunity of low interest rates to move into home ownership.
The increased level of supply in the inner apartment market is also contributing to the softening of rents. The impact of increasing supply hasn't been fully realised in the market with local agents saying rental incentives are helping attract tenants.
According to figures from the RTA median weekly rents softened for three bedroom houses and two bedroom flats, while three bedroom townhouses remained steady.
With unit prices yet to start increasing, gross rental yields for units have remained steady at 4.9 per cent over the June quarter. In comparison, the gross rental yield for Brisbane houses was down to 3.6 per cent on the back of easing median weekly rents and a strong increase in the
median house price.
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