The housing market value in Queensland has surpassed the trillion dollar threshold for the first time ever, thanks to the recovering economy and a rise in buyer interest.
The Sunday-Mail reported that according to CoreLogic figures, the value of the state’s residential sector hit $1.004 trillion in September, marking a 10 percent increase from $910 billion in 2016.
“Overall, due to the improved economy, increase in employment and population, $15 billion construction boom and the Advance Queensland Business Development Fund, Queensland is projected to deliver good long-term capital growth,” said Doron Peleg, chief executive at RiskWise Property Research.
This rise in value also coincides with real estate revivals in some parts of regional Queensland as towns recover from mining busts.
Valuer Herron Todd White said prices of real estate Cairns, Emerald, Gladstone, Townsville and Mackay have grown by 40 percent in the last 12 months due to surging capital works projects and coal value.
In particular, median house price in Mackay grew 2.5 percent to $335,000 over a year to June. “This market is benefiting from a jobs boom in the region and currently has the lowest unemployment rate in the state,” said Antonia Mercorella, chief executive at Real Estate Institute of Queensland.
CoreLogic’s head of research Tim Lawless said mining towns could expect an increase in home values following rebound from the sector’s downturn. “Coming into 2019, markets like Mackay should start to see some growth, we expect Toowoomba to move back into positive growth and Cairns to see a bounce higher,” said Lawless.
However, Peleg said buyers should “proceed with caution” in these areas.