Sales are up, and property prices across much of the state are increasing.

Brisbane's median house price has tipped over the $500,000 barrier again, rising 1.2 per cent during the quarter to hit $505,000.

The latest Real Estate Institute of Queensland median house price data has also revealed the number of homes selling during the quarter is 6 per cent higher than at the same time last year.

While many medians throughout the state are still down on 12 months ago, the quarterly results are the first signs the market is starting to recover, says REIQ chief Anton Kardash.

Bahrs Scrub at Logan broke all records, posting a massive median house price of $2,113,475 for the quarter.

Even blue-chip suburbs in Brisbane and on the Gold and Sunshine coasts have failed to reach those levels in the past.

The Bahrs Scrub figure, though, is likely to be a one-off.

There were not enough sales in the last quarter to attract a median for the suburb, and six of the sales during the March quarter were for homes on large tracts of land which were bought by a residential developer.

In Brisbane, Nundah experienced the biggest growth during the quarter with its median price up 33.7 per cent to $580,000.

Ascot was the worst performer during the quarter, with its median dropping 30.2 per cent to $628,000.

Flood-affected suburbs such as Chelmer, Rocklea, St Lucia and Westlake did not have enough sales during the quarter to record a median.

State-wide, mining towns still performed well, but tourism centres also made a comeback, with the Fraser Coast the top performer of all major regions. Its median house price grew 7.8 per cent over the March quarter, and the number of transactions was up 42 per cent.

Mr Kardash said the figures were all signs that the market was starting to turn around.

"Three months ago, when we analysed the December quarter data, it seemed to indicate we had reached the bottom of the market because prices were stabilising," he said.

"We predicted at the time that the March quarter data would be even more positive, and it certainly is that.

"My guess is that Brisbane on a whole is still being held back by a couple of things - expensive properties (not trading or selling at a discounted rate) and flood-affected properties."

By Michelle Hele; Courier Mail

Read more

by Colin Brinsden | AAP

A pick-up in mortgage inquiries for the first time in two years could be an early indicator that house prices will recover in future months.

Research by lending data provider Veda shows that while overall consumer credit demand remains soft, home loan inquiries rose 1.5 per cent in the year ending March - the first annual rise since the 2008-2009 global financial crisis.

"Turning points in mortgage inquiries usually occur one to three quarters ahead of turning points in house prices," Veda head of consumer risk Angus Luffman said this week.

"This is a trend to watch, particularly if you are hoping for a future pick-up in house prices."
However, in the three months to the end of March there were significant differences in mortgage demand between states.

Western Australia surged by 7.6 per cent, but NSW plunged by 7.6 per cent after stamp duty exemptions expired at the end of last year.

Overall credit demand fell by 4.8 per cent in the year to March, with credit card applications tumbling by 8 per cent and personal loan applications down 1.4 per cent.

"Australian households have spent the post-GFC period firmly in saving rather than spending mode, and the results show consumers are still cautious about taking on credit," Mr Luffman.

He said weakness in credit card demand reflected a rise in debit card usage and the introduction of responsible lending laws in 2011, which added more steps to the application process.

It also highlights Australia's two-speed economy, with applications dropping sharply over the year in South Australia (down 12 per cent), NSW (11.3 per cent) and Victoria (8.8 per cent).

However, declines were less severe in the mining states of Queensland (down 1.6 per cent) and Western Australia (down 4.2 per cent).

Read more

Vendors no longer have to offer as deep discounts as last year to secure sales of their properties, new data released by Australian Property Monitors reveals.

The amount of discounting required peaked in winter and/or spring in mid- to late 2011, according to APM, with the most discounting required between June and November last year in all capitals.

In Sydney, Brisbane, Perth, Darwin and Hobart discounting has reached its lowest level in a year in early 2012, according to APM researcher Clinton McNabb. However, there has been a slight rise in required discounting in all but two capitals – Melbourne and Canberra. 

Melbourne, Adelaide and Canberra vendors now offer less of a discount than they did in mid-2011, but more of a price reduction than in April last year. 

Brisbane vendors have consistently had to offer the deepest discounts to secure sales, except for in July last year, when Perth vendors offered discounts of 10.4%, compared with Brisbane's 10.3%. 

Property Observer

The Reserve Bank has cut interest rates by 0.5 per cent today.
The 50 basis point fall comes on the back of evidence the economy is struggling with weaker-than-expected inflation figures released late last month.

The official interest rate is now 3.75 per cent.
It is good news for mortgage holders who were earlier this year hit with out-of-cycle rises by many lenders.

"This is quite a heavy cut and the Reserve will be hoping that it has maximum impact," says Domain property expert Carolyn Boyd.

Each 0.50 per cent drop in interest rates slices about $120 off the monthly interest cost of an average Australian mortgage.

All eyes will be on the financial institutions to see if they follow suit, says Boyd. It is possible lenders could pass on a smaller proportion of the official drop to their own customers.

At least one bank will hold off announcing a decision for more than a week with the ANZ Bank set to release its move next Friday, the second Friday of the month.

If lenders do make cuts, Boyd says it is a smart idea for borrowers to maintain their current repayment levels.

"Many institutions don't automatically adjust repayments down in line with lower rates, and if you think yours might, you should speak with them and ask for your repayment amounts to be kept as they are," says Boyd.

"It is inevitable that rates will rise again in the future, so this is a golden opportunity to pay some extra money off your loan if you can afford to do so."

Source: domain.com.au

Jason Andrew, director of Jason Andrew Auctioneers, said that when it comes to marketing spend, most sellers want to commit to as little as possible. And it’s understandable. After all, why would anyone want to spend money unless they absolutely have to in the current economic environment?

“[Agents will] suggest the most basic ‘bare bones’ package as the holy grail of marketing mediums; photos, signboard, internet and maybe a few small print ads,” Mr Andrew said.

Jason Andrew Auctioneers recently took a random sample of 180 auctions and split them into two categories. The first category comprised properties where the marketing campaign was less than $5,000 in total. There were a total of 125 properties in this group and the average number of groups inspecting during a five week campaign was 12.08.

The second category comprised properties where the marketing campaign was greater than $5,000. There were only 55 properties in this category, but the average number of groups inspecting during the campaign was 41.16.

Over the 180 auctions, where the marketing spend was greater than $5,000, there was 67% more traffic, and 3.5 times the average number of inspections. Greater spend, more inspections.

“We have an obligation to our vendors to obtain them premium prices, not just market value. Why should they miss out because of an agent’s inadequate skill to overcome their reluctance to marketing challenges?

Ultimately, every seller needs to have the following equation clearly demonstrated (with solid hard data) to them; more inspections equal greater levels of competition, equalling a better price.”

Getting into the property market for the first time is tough, there’s no doubt, but there are many factors impacting on why people view this as a major problem.

High expectations

Gen Y are living at home longer than ever before. They are saving longer and accruing bigger deposits. Interest rates are low. So why can’t they afford to buy? 

In many cases it’s not that they can’t afford to buy property, it’s that they can’t afford to buy what they want. Expectations are too high. Many people expect be able to buy a reasonable property in a desirable location close to the lifestyle amenities they want. This, obviously, is very difficult. There is a sense of wanting to have it all straight away. Australian households are paying more than they can afford for housing, with more than 740,000 renters and over 380,000 mortgaged home owners reporting significant financial stress. Sometimes you just have to take baby steps. 

This aversion to moving out of the inner city (where the lifestyle amenities are) is going to lead to a generation of renters, and the Aussie dream of home ownership will be sacrificed for lifestyle. This of course, will push up rents because of the simple rules of supply and demand. 

More than 75% of Australians live in and around our major cities along the eastern and south-eastern coastal areas. And that’s where they want to stay. The limited land available in these locations, along with a growing population of buyers and immigrants, naturally puts pressure on Australia’s metropolitan prices.

Small will become the new big

That leaves two options: a bigger property in an outer-ring location, or a (much) smaller property that is more centrally located. Gen Yers are willing to sacrifice space for location, so will more and  more opt to live in high-density housing (apartments, etc.) that are located close to where they work and play than a bigger place further out.

Governments will need to help out

If affordability issues are pushing people to the ‘burbs, governments will need to create business activity centres where people can work close to home in the outer areas. Lack of infrastructure is still a problem in many outlying areas, and this is preventing people from wanting to relocate to outer-ring suburbs.

In addition, the federal government should be looking at introducing a flexible and secure savings scheme for first-home buyers that is tax free and places no limits on the entry or exit time frames and amounts held in the account. This would go a long way to assist first-home buyers.

Banks need to drop interest rates

Banks will also need to play their part in solving the affordability crisis. The Reserve Bank does its bit to keep rates low and try to stimulate the economy but it’s up to individual banks to pass on those rates to consumers. The GFC, the lending crisis in the US and the experience in parts of Europe have left our banking sector overly cautious when it comes to lending. It’s harder now to get a loan than it has been in a long while. Although I don’t agree with the former US approach of basically handing out an unsecured loan to anyone who asks, if lending criteria were loosened up a bit more people would be able to jump into the property market much more easily.

We have to remember however that, overall, interest rates are a lot lower than they were 20 years ago. Gen Y didn’t live through that. They don’t understand the pressure of the threat of losing your family home to the bank. 

Housing isn’t that expensive

Speaking of the rest of the world, on international standards, housing is Australia is still relatively affordable. 

If affordability was a real issue, then why do we have so many investors continuing to buy up residential property?  Again, the issues lies with first-home buyers, not the market overall. 

Growth is good!

We want our economy to grow and we want our property market to grow with it. It’s good for the whole country. Many people are doing very well investing in property and will continue to do so. Ultimately, people need to lower their expectations, bite the bullet and start off with a property they can afford while still making a good purchase decision in terms of potential for capital growth. There are lots of great, affordable properties out there. You just need to be prepared to live in one of them!

By Melissa Opie
Property Observer

After tough market conditions in 2011, many Queenslanders are wondering if and when the market will bounce back.  According to the recent median data released by the Real Estate Institute of Queensland, there is now reason to believe that the last quarter of 2011 marked a turning point in Queensland’s property market.

Medians on the rise

Both the house and unit sectors are showing healthy signs of recovery, with many areas across the state posting median price increases in the December quarter.  As 2011 progressed, so too did confidence levels in the Queensland property market, with prices beginning to strengthen.  Many regions have seen their most robust results since prior to the floods and Cyclone Yasi that unfortunately dominated the beginning of 2011.

Over the December quarter, the median house price in Brisbane recorded a negligible fall of 0.2%, to $499,000, marking the lowest fall in Brisbane’s house price since September 2010.   Unit and townhouse median prices increased 2.0% in the December quarter reaching $400,000.  These healthy results indicate that Queenslanders are feeling more optimistic about the future, resulting in a positive impact on the property market.

Confidence creeping back 

It appears that first home buyers and investors alike are rediscovering the healthier property market.  As we move into 2012, REIQ accredited agencies are reporting improved levels of enquiry, with first home buyers and investors especially taking a keen interest in the more affordable unit and townhouse market.

In addition, the number of first home buyers is on the rise, with the latest ABS figures revealing they represent approximately 20% of the market (the highest proportion for more than two years).  This is likely driven by the softening of property prices over the past two years, as well as the relatively low interest rate environment, making property more affordable than it has been in recent years.

We therefore anticipate more positive news on the Queensland property market in the months ahead as the November and December rate cuts flow through our wider economy.

Read more

SCRAPPING real estate red tape will be the Newman Government's first legislative priority as it aims to kickstart Queensland's ailing property industry.

Deputy Premier Jeff Seeney yesterday confirmed laws to jettison sustainability declaration forms would be the initial legislation introduced by the new administration when Parliament resumes in mid-May.

The controversial mandatory forms aimed at tackling climate change have dogged home sellers since their introduction in 2010.

Despite revisions and a fine amnesty, the real estate industry has argued vehemently for the forms to be scrapped, insisting they add nothing to what is already a testing time for buyers and sellers.

The Newman Government will also streamline home sale contracts, as well as reinstate the $7000 residential stamp duty concession, in a bid to breathe life into the industry that has not fully recovered since the global financial crisis.

It comes as Premier Campbell Newman's Cabinet meets formally for the first time today to map out a broad first-term agenda after the LNP annihilated Labor at last month's election.

Other priorities for the Government's first month in office include freezing vehicle registration and commencing the introduction of the flood inquiry recommendations.

Mr Newman will also travel to Canberra on Friday to attend his first Council of Australian Governments meeting.

Mr Seeney yesterday told The Courier-Mail that the declaration form had become symbolic of all that was wrong with the Bligh Government.

He said the forms added red tape without providing any real benefits to buyers.

"It was just about feel-good green preferences rather than any sort of outcome at all,'' he said.

Mr Seeney said the LNP had recognised the importance of helping the property sector to aid the recovery of the overall Queensland economy.

Along with ditching red tape, Mr Seeney said getting more efficient decision-making would also help the sluggish industry. "What the industry wants is timely decisions,'' he said.

"If it is 'yes' let them get on with it, and if it is a `no' then let them know so they can get on with something else.''

Originally proposed in 2008, the sustainability declarations were pitched as a way buyers could easily compare the energy efficiency credentials of competing properties.

Courier Mail Read more

A HOST of new housing designs hitting the Queensland market are challenging the concept of the four-bedroom, two-bathroom home on a standard suburban block.

In the quest to improve housing affordability, the Urban Land Development Authority has worked with builders and non-profit housing providers to drive innovation in the industry.

Home designs now include a "Fonzie style'' flat above a garage (a nod to the popular '70s TV show Happy Days), rear laneway access, clever combined garage/courtyard entertainment areas and dwellings on "mini blocks'' as small as 54sq m.

Housing is widely considered to be affordable if households spend up to 30 per cent of their gross income on rent or 35 per cent on mortgage repayments.

In the authority's Housing Strategy report (2011), chair Julie Boyd says the ULDA continues to invest in innovative urban design to demonstrate that new and affordable housing can be built and accepted in the market.

"The capacity for Queenslanders on low to moderate incomes to afford to purchase or rent a home has become more difficult in the last decade as a range of pressures impact on availability and affordability,'' Boyd says in the report.

"The Urban Land Development Authority works to deliver vibrant, inclusive communities that provide a range of diverse housing options. . .''

The new housing designs have been tested at the UDLA's Fitzgibbon Urban Development Area, a 295ha site 12km north of Brisbane's CBD.

Read more

Unconditional sales of new Brisbane units increased from 74 in the November quarter 2011 to 186 in the February 2012 quarter.

The outlook for the new Brisbane apartments market remains healthy with supply and demand evenly matched, but the Gold Coast market continues to struggle with sales of new apartments still at post-GFC lows, according to the latest Midwood Report.

Unconditional sales of new Brisbane units increased from 74 in the November quarter 2011 to 186 in the February 2012 quarter.

Stock levels have declined to 1,446 from a peak of 1,683 in May last year, which equates to two-and-a-half years’ worth of supply at current sales rates.

Investors have been spurred on by rising rental returns, with one-bedroom inner-Brisbane flats registering rental growth over the past 12 months of 9% to a median of $300 per week, with a smaller 4% increase in two-bedroom flats ($380).

Midwood Report author Bill Morris says the Brisbane market has been characterised by a sustained level of sales over the past two years, averaging 200 sales per quarter

Brisbane remains the fastest-growing state capital, with current growth rate of 2% per annum and is also experiencing an influx of employees in the inner city, with both trends being driven by the Queensland resources boom.

The strongest-selling project was David Devine’s Metro Property Madison Heights development in Bowen Hills, which clocked up 57 sales with prices ranging from $350,000 for a one-bedroom apartment to $434,000 to $556,000 for a two-bedroom apartment. Madison Heights features 296 apartments, with 200 sold since launch of the project in March 2011.

There were also 15 sales at Metro Property’s The Chelsea development also in Bowen Hills, with 190 out of 195 apartments now sold in the project. Prices range from $355,000 for a one-bedroom apartment to $546,000 for a two-bedroom apartment, and there were 20 sales recorded for Brooklyn on Brookes in Fortitude Valley, Metro’s joint development with Indian-based developer Pearls.

The other strong performer was Meriton’s 81-storey Infinity Tower, currently under construction, with 34 sales recorded and prices ranging from $470,000 for a one-bedroom apartment to $650,000 for a two-bedroom unit. To date 123 out of the 287 apartments in the tower have been sold.

Meriton’s other high-rise Brisbane project the 74-storey Soleil registered no unconditional sales over the quarter. It has sold 216 of the 414 apartments marketed to date with prices ranging from $347,000 for a one-bedroom apartment to $806,000 for a three-bedroom apartment with two car spaces.

Read More