PHOTO: Highgate Hill, Milton, Kelvin Grove and West End suffered the biggest sales price declines in the inner-city ring. (ABC News: Isobel Roe)
Several of Brisbane’s more expensive suburbs are among the biggest losers in the property stakes, a Real Estate Institute of Queensland (REIQ) report rating performance in 2017 has found.
The Queensland market monitor showed Highgate Hill, Milton, Kelvin Grove and West End suffered the biggest sales price declines in the inner-city ring, followed by Wilston, New Farm and Taringa.
Highgate Hill in Brisbane’s inner-south suffered a median price plunge of 17.9 per cent year-on-year to $937,500.
Milton’s median price fell 11.4 per cent to $855,000, compared to 2016.
In Kelvin Grove, the median sale price was down 7.9 per cent to $764,750 and West End dropped 6.3 per cent to $1,030,500.
But some Brisbane suburbs enjoyed strong growth.
Teneriffe in the city’s inner-north became Brisbane’s first $2 million suburb in 2017 with a median sale price of $2.4 million — up 30 per cent on 2016.
At the same time, Kangaroo Point and Kalinga joined the $1 million club, with median sale prices soaring 28.4 per cent and 22.5 per cent respectively.
REIQ media manager Felicity Moore said inconsistences in price growth throughout the city could be attributed to “supply issues”.
“When you see a price soften significantly, it could be that there’s an additional level of stock developed, such as house and land packages that meets the level of demand,” Ms Moore said.
PHOTO: The Gold Coast recorded an overall increase in median sale price of 7.7 per cent. (Supplied: Tourism and Events Queensland)
Beach lifestyle proving attractive
Both the Gold Coast and the Sunshine Coast outperformed Brisbane in terms of house price growth.
The REIQ report showed the Gold Coast recorded an overall increase in median sale price of 7.7 per cent and the Sunshine Coast achieved 5.9 per cent, while Brisbane only managed an average of 2.6 per cent.
Ms Moore said the rediscovery of the beach “lifestyle markets” was somewhat overdue.
“When you look at what those markets have to offer, the Gold Coast and Sunshine Coast are just world class coastal beachfront living at its best,” she said.
“They’re not densely populated, they’ve both got world class beaches, great shopping and good schools and the amenities that go into those communities are of a very high standard.”
She said 2017 results positioned the Gold Coast as the strongest market in Queensland and among the top 10 nationally.
“It’s a similar story with the Sunshine Coast, although for years the level of supply going into that market has been a bit constrained,” she said.
“It’s struggled from a long-time lack of construction of new dwellings and when there’s demand building up it puts pressure on prices.”
Mining downturn impact
The report indicated the mining downturn continued to impact parts of central Queensland.
In Blackwater, the median sale price nosedived 70 per cent to just $36,000 last year, down from $120,000 in 2016.
Five years ago, the average sale price was $450,000.
“It’s a very sad situation but there is good news on the horizon,” Ms Moore said.
“The global body that monitors coal demand is forecasting that from 2022 there’s going to be a global uptick in demand, so in anticipation of that we’re seeing some coal miners pull some smaller mines out of mothballs.
“There’s a level of confidence coming back into the coal sector.”
Originally Published: brisbaneinvestor.com.au