This missive continues on from last week’s national sales volume wrap-up & focuses on the Queensland regional markets.
So what is happening, sales volume-wise, across the Sunshine state?
Let’s start with the Gold Coast.
Overall, sales volumes (which includes settled house, attached dwelling & land sales) on the Gold Coast have increased by 4 per cent on last year, to 7,100 settled sales over the past 12 months, according to the REIQ.
Another market which has improved in terms of sales volumes is Toowoomba, with 2,000 sales this year, which is up 9 per cent on 2012.
Other improving Queensland markets include the Sunshine Coast, with 4,450 sales this year, up 13 per cent on the year before. Also doing well – and despite the recent flooding – is Bundaberg with 1,100 sales this year, up also 9 per cent on 2012.
But the big surprise is Cairns, where sales volumes, on an annualised basis, are up a big 18 per cent to 2,250 transactions over the last 12 months.
Markets which have stalled – sales-wise – across Queensland include Rockhampton, with little or no change in annual sales volumes over the last couple of years; 1,620 sales settled across Rocky last year.
The Townsville market saw a 2 per cent drop in sales volumes this year. 2,260 sales settled in Townsville during the 12 months to 31st March.
Mackay has also stopped, with a 4 per cent drop in sales this year. 1,700 sales settled across Mackay over the last 12 months.
The Hervey Bay region is doing it a bit tough with sales volumes down 6 per cent on last year. There were 930 sales in this region over the last year.
Gladstone has now entered a downturn, with a 39 per cent fall in sales volumes & with just 820 settled sales over the past 12 months. More pertinently, the fall in sales has been across the wider market with sales falling 36 per cent for houses; down 43 per cent for apartments/townhouses & down 45 per cent for vacant land.
[sam id=31 codes=’true’]No other major Queensland region, despite having sales volumes drop overall, had a clean sweep across all three key markets. Investors now need to be very careful of what they buy & how long they hold property for, when it comes to the Gladstone market.
Overall, there were 47,500 sales across Queensland (including the Brisbane region) over the last 12 months. This is up 2.5 per cent on the year before.
As mentioned recently a market’s position can be determined (in part) by sales volume trends.
It now appears that Hervey Bay; Mackay & Townsville are approaching a peak. All three will most likely continue to improve in coming years, but the rate of recent growth is unlikely to be repeated. Right now they are all taking a breather, so to speak.
The Rockhampton region – for mine – is about to see a lot more sales as part of the fall-out from Gladstone’s peak/downturn.
Markets that look set to improve include Cairns; Toowoomba; both the Gold & Sunshine Coasts & Brisbane, which as outlined last week, has seen a 10 per cent lift in sales volumes over the last year.
Again, it is interesting to see how small some of these regional markets are.
For example, half of the sales across Queensland take place in Brisbane, with the south east corner of the state actually having a 75 per cent market share.
The Gladstone market, for example, comprises just 2 per cent of all sales across Queensland. Given the amount of property-rated press this area gets, an outsider might think that it was the state capital.
Almost two-thirds (63 per cent) of the property bought across Queensland is detached houses, with 27 per cent being attached dwellings & 9 per cent vacant land.
Land sales are down 11 per cent across the state; whilst house sales & apartment sales have improved by about 4 per cent each since this time last year.
A couple of land markets have broken this trend, including Cairns & the Sunshine Coast (where land sales are up 26 per cent in both areas); Hervey Bay (sales up also 8 per cent) and in Brisbane City (up 3 per cent) plus Toowoomba (up 2 per cent).
For mine, there are three main reasons why these land markets are doing better –price; product & scarcity.
Cairns & Hervey Bay have finally dropped their values low enough to warrant ‘value’ in the buyer’s mind.
There isn’t enough new land being released (available) in Brisbane City & the Sunshine Coast offers land in largely quality estates, with many of the allotments in close proximity to the new regional driver up there – the Kawana Health Hub.
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