Positives Return To The Residential Market

Positives Return To The Residential Market

Author: Tara Downey

The residential market has seen a range of ups and downs in the first half of 2010 and although it remains under pressure as a result of recent and potential interest rate rises there are many positives returning to the market.

Recent reports by RP Data found a drop in the number of homes listed for sale as well as a slow down in house price growth.

However, a report by PRDNationwide found suburbs close to the Brisbane CBD were showing signs of recovery with Ascot topping the list for house price growth in Brisbane with a 64.1% increase in the median house price for the year to March 2010. St Lucia was close behind with 59.6% growth, followed by Hawthorne at 34.6%.

Meanwhile, research by http://www.realestate.com.au has found that around 14% of home buyers in Queensland will spend 10% or more above the asking price. The research found a large percentage of people believed rates would rise in the next three months, but they were still prepared to pay a premium.

Brisbane residents have embraced apartment living with the number of owner-occupiers buying units in the inner-city jumping 25% in the past five years. While the number of owner-occupiers accounted for only 25% of apartment sales across inner-Brisbane five years ago, in the past 12 months that number has jumped to about 50%.

The unit market is still performing well with values increasing 1.9% over the June quarter and 7.9% in the year to July. For the remainder of 2010 and into 2011, the recover in economic growth and the continued population growth should continue to drive the market.

Tara Downey is Communications Officer for McGees Property, Brisbane. She has a media background spanning more than 10 years with working experience in business reporting, travel writing and newspaper journalism. McGees Property specialises in commercial real estate with our successful and highly skilled sales, leasing, valuations and professional services, and asset management teams. http://www.bne.mcgees.com.au