Property prices in Queensland continue to climb in both city and country locations fuelled by the resources boom.
Property values in Brisbane marched steadily upwards increasing by 6.15% in the three months to November 2007, reports Residex, with prices in country locations growing by 2.05%. The median house price rose to $428,500 in the state capital, and $361,000 in regional areas.
REIQ chairman Peter McGrath says that median house price growth in Queensland has been the strongest in resource-rich suburban areas such as Mt Isa, Belyando, Bowen and Cloncurry.
"Such results are not surprising when you consider the continuing strength of Queensland's mining industry," McGrath says. "The resources boom means more and more people are working in the mining industry and being paid handsomely for it, so many people are investing in property."
McGrath says that even with prices increasing more than 50% over the year in several mining towns, prices still remain relatively affordable compared to many other areas of the state.
"When you consider the low median house prices in areas such as Mt Isa and Bowen 12 months ago – they were well under $200,000 – it is a lot easier to have that very strong level of growth when it is coming off a lower base," he says.
"Brisbane and the Gold and Sunshine coasts all now have median house prices over $400,000. With medians [in regional areas] still under $300,000, investors especially will continue to be attracted to mining areas because they can make a very good return on their outlay.”
Property owners in Brisbane’s middle ring and satellite suburbs are also set to enjoy substantial growth in 2008, according to Andrew Donnelly, CEO of property research group Braxton Chase, as he predicts that capital growth increases will ripple out from the inner city.