News

Fears of property 'bubble' looming in some markets

THE housing investment boom that drove up property prices in Mackay and Gladstone is now looming for the Southern Downs and Toowoomba, with property experts warning of a possible bubble.

New regional data from Australian Property Monitors shows increasing house prices in Warwick and Toowoomba, a trend APM senior economist said was driven by "good value" in the area.

In the year to December 2013, median house prices in the Southern Downs region increased by more than 10% to $265,000 and those in Toowoomba went up by 7.8% to $345,000.

The Rose City's market is building on the perception that it is more affordable than its Toowoomba neighbours, APM senior economist Dr Andrew Wilson said.

"It's being looked at as an affordable option to the Toowoomba market, which is moving from being the most affordable of all Queensland regional markets," he said.

"The question is whether Toowoomba will move too far ahead."

But he said Toowoomba was certainly strengthening.

"There is a lot of investor interest in the Toowoomba market because it is the gateway to the Surat Basin," Dr Wilson said.

"It's perceived now as an investor hotspot - I'm not sure if that's a great positive given the experience of Gladstone."

The price for a house or unit in Gladstone has tumbled between 8% and 17% in the past year as its market overheated by billions in gas infrastructure now continues to cool.

In Mackay, median house prices fell 2% while unit prices fell by more than 12%.

In the coalfields shire of Isaac, west of Mackay, house prices dropped by almost 22% from $397,000 down to $310,000. These were prices long inflated by the huge demand created by the resources industry, be it gas development in Gladstone or coal mining in Isaac and Mackay.

The now-calming prices of Central Queensland's mining provinces once drove locals from their home towns as they were increasingly priced out of the market, the effect of a "property bubble".

These areas will be reinvigorated as the Galilee Basin west of Mackay and Rockhampton evolves into an enormous new mining hub.

Gympie, Bundaberg and Fraser Coast regions are likely to improve as they follow the lead of Brisbane, an investment darling with house prices still below its peak of 2010.

House prices on the Sunshine and Gold coasts are also to improve as they are dragged along by Brisbane's momentum.

MEDIAN house prices in Dec 2013 and (Dec 2012)

  • Southern Downs: $265,000 ($240,000) +10.4%
  • Toowoomba: $345,000 ($320,000) +7.8%
  • Bundaberg: $291,000 ($287,000) +1.4%
  • Fraser Coast: $295,000 ($300,000) -1.7%
  • Gladstone: $420,000 ($460,000) -8.7%
  • Gympie: $280,000 ($293,750) -4.7%
  • Ipswich: $320,000 ($308,000) +3.9%
  • Isaac: $310,000 ($397,000) -21.9%
  • Mackay: $412,000 ($420,000) -12.1%
  • Rockhampton: $335,000 ($325,500) +3.1%
  • Sunshine Coast: $460,000 ($448,500) +2.6%

Topics:  property, southern downs, toowoomba, warwick




Councillors hand down regional building goals

TOP PRIORITY: Funding for wild dog and rabbit fence, like this one Palgrove Ln and Goldfields Rd near Stanthorpe have been named as key priorites for Southern Downs councillors.

Councillors have laid out a plan for regional infrastructure.

Good teachers = good future for Warwick kids

CENTRAL INTELLIGENCE: Christine Dolley is excited about the future of education.

Christine Dolley talks about the past and the future of education

Warwick police hunt drive off suspect

Warwick police on the hunt

Latest deals and offers

Vintaea: Why I left The Bachelor on the first night

Vintaea Carlos was one of 22 "bachelorettes" looking for love on the fourth season of The Bachelor.

Queensland beauty leaves Richie at rose ceremony.

Amber Heard claims Johnny Depp is stalling divorce

Amber Heard claims Johnny Depp is delaying their divorce

The Bachelor host: this year's season is a cracker

The Bachelor host Osher Gunsberg.

GUNSBERG says tonight will be "the best night of TV of the year".

Kerri-Anne Kennerley to Sonia Kruger: "Stay brave"

She said her television peer should "stay brave"

Swimwear designer looking for love on The Bachelor

Noni Janur on her first day of filming.

The 25-year-old is one of 22 women vying for Richie Strahan’s heart

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

The climb is slow but property on the way up

Michael Matusik, director of Matusik Property Insights.Photo Allan Reinikka / The Morning Bulletin

The improvement would be mild when compared to past cycles