UDIA (Qld) reveals latest “health check” results for the QLD property market
The Urban Development Institute of Australia (Qld) Research Foundation, proudly presented by CSQ, tod
4 June, 2015 5 min read
The Urban Development Institute of Australia (Qld) Research Foundation, proudly presented by CSQ, today launched the second Industry Insights Report which gives up-to-date insight into the trends for land, housing and apartment sales, supply and prices across Queensland.
Prepared by The National Property Research Company (NPR Co), the Industry Insights Report – A localised snapshot of the new development sector across Queensland, has gathered market intelligence from those who know the industry best – real estate agents and developers across 15 local government areas.
The Report shows mixed results across the State.
While land sales volumes were down across the board, there are bright spots with numerous regions showing growth in sales of new property and others anticipating improving conditions in the near future.
The UDIA (Qld) Industry Insights Report also reveals:
- In Brisbane, almost all respondents reported a rising market across all categories over the last six months, with 9 in 10 respondents citing interest rates and population growth as the major positive influences on the market
- 100% of respondents in the Sunshine Coast and Logan believe the land and housing markets will still be rising 12 months from now
- In Ipswich, positive sentiment about land sales was high, with those surveyed having confidence that both demand and supply will increase significantly over the next 12 months
- A majority of Toowoomba and Fraser Coast respondents expect the already strong sales and inquiry levels for land and housing to continue to increase over the next 12 months
- Low inquiry rates for apartments, will continue to impact sales in Gladstone, the Fraser Coast Rockhampton, Townsville, Moreton Bay and Ipswich
- Survey respondents see future housing affordability on the Sunshine Coast as a critical issue as land and housing supply continues to struggle to keep up with rising demand
- Cairns showed promising increases in sales volumes for both houses and medium-density dwellings over the last six months, and respondents expect this to continue for at least the next year
- In Brisbane, the industry sees drivers of the market as being consumer confidence and interest rates
- The outlook for the Gold Coast was very positive, with comments that the Gold Coast was poised for a boom and that there was strong interest from international buyers and investors
- Low interest rates are cited as one of the top drivers of current market activity in South-East Queensland, but are expected to become less important relative to other factors over the next six months.
To download a copy of the fact sheet click here.
UDIA (Qld) President Brett Gillan said Queensland’s new property market made a positive contribution to economic growth and jobs in Queensland in 2014, however there are some signs that the industry may be losing momentum if issues such as land supply and infrastructure investment are not addressed.
“Increasing the supply of developable land in South East Queensland and investment in catalyst infrastructure across Queensland, particularly in regional centres highly exposed to the downturn in mining, is necessary.”
“Land supply, particularly in South East Queensland, is a growing issue for developers looking to create future communities of scale and vision,” he said.
“We need to be proactive to ensure we can continue to deliver the choice and range of housing options the market desires, in a price range that consumers can afford,” Mr Gillan said.
“Outside of South East Queensland, we are very aware of the issues facing regional communities, particularly those with a strong reliance on the health of a single industry sector. The UDIA (Qld) resolves to work closely with our industry, local councils and the State Government to ensure a sustainable approach to development that takes some of the steepness out of the property cycle and provides more certainty for local residents.”
Helping to deliver the insight behind the report, NPR Co Managing Director Matthew Gross said the research delivered by the report fills a crucial gap in the industry.
“The Industry Insights Report provides in-depth and localised insights into the market across 15 local government areas,” Mr Gross said.
“The Report highlighted land supply, a broadening economic base and certainty as the three areas to focus on as the industry moves forward on the back of a low interest rate environment.”
CSQ CEO Brett Schimming said since The Research Foundation launched just over six months ago, the feedback from industry had been very positive, demonstrating the value this research provides to industry.
“Research and analysis of data is critical to a successful development and construction industry. By understanding future growth areas in Queensland, CSQ can better target its skilling and training investments to facilitate the right construction skills in the right place at the right time,” he said.
The direction of The Foundation’s research program is driven by a Research Industry Leader’s Group representing Stockland, Amex Corp, Lend Lease, Australand, Investa, Peet, Pradella Property Ventures, Excel Development Group, Defence Housing Australia, Pointcorp, AV Jennings, Wentworth Equities, McNab and PLACE Design Group.
Mr Gillan said, “The Industry Insights Report is part of UDIA’s (Qld) commitment to assisting the industry to understand what is happening in markets around Queensland and plan for the future delivery of the right type of housing in the right locations, at the right time. Our Industry Leaders Group provides valuable advice on what are the most relevant research needs on the horizon, and ensures we provide timely and relevant insights.”
Anecdotal comments included within the report are included to add local sentiment to the richness of data provided and are not the view of the UDIA (Qld) or its regional branches.