From the Australian:
Queensland, beautiful one day, overpriced the next
Anthony Klan
May 11, 2005
SYDNEY and Melbourne buyers in search of cheaper housing are abandoning Queensland in droves, forcing a slump in what has been the nation's hottest market and prompting fears of a glut of new properties.
Just weeks after Brisbane exceeded Melbourne's median house price, data for the March quarter shows prices have fallen 3 per cent - the biggest fall in more than a decade.
The median house price in Brisbane had been $357,750 before the recent fall, compared to Melbourne's $352,000.
Migration to Queensland fell by 14 per cent to 53,500 in the year to September, Australian Bureau of Statistics figures show.
Michael Matusik of Matusik Property Insights said that although Queensland still recorded the strongest migration growth in the country, growth levels would fall further as fewer people moved to southeast Queensland from the southern capitals due to rising housing prices.
"Victoria remains the second fastest growing state fuelled by an increasing share of overseas migrants and now migrants returning home from a stint in Queensland," Mr Matusik said.
"People feel that whilst interest rates have risen a little bit, they can get into the southern housing markets a little easier than they could in 2002 and 2003 when migration to southeast Queensland peaked."
According to the Real Estate Institute of Victoria, Melbourne house values fell 4.9 per cent in the March quarter.
Sydney apartment prices fell by 8 per cent in the year to April, according to CPM Research.
Real Estate Institute of Queensland research manager Fiona Bergin said the slowing population growth could cause problems for some developers.
According to PRDnationwide, sales of inner-city apartments in Brisbane hit their lowest level in six years in the March quarter.
However, Ms Bergin said house rental vacancy rates were a low 1.66 per cent for Brisbane in the March quarter. This would put a floor under Brisbane house prices, she said.
Mr Matusik said some southeast projects had been put on hold or abandoned which would also help ease supply.
Since the end of the property boom, developers have abandoned plans to develop more than 7000 apartments across the country.
However, there are still more than 10,000 apartments under construction and expected to be completed in Sydney, Brisbane, Melbourne and the Gold Coast in the next 12 months.
Queensland, beautiful one day, overpriced the next
Anthony Klan
May 11, 2005
SYDNEY and Melbourne buyers in search of cheaper housing are abandoning Queensland in droves, forcing a slump in what has been the nation's hottest market and prompting fears of a glut of new properties.
Just weeks after Brisbane exceeded Melbourne's median house price, data for the March quarter shows prices have fallen 3 per cent - the biggest fall in more than a decade.
The median house price in Brisbane had been $357,750 before the recent fall, compared to Melbourne's $352,000.
Migration to Queensland fell by 14 per cent to 53,500 in the year to September, Australian Bureau of Statistics figures show.
Michael Matusik of Matusik Property Insights said that although Queensland still recorded the strongest migration growth in the country, growth levels would fall further as fewer people moved to southeast Queensland from the southern capitals due to rising housing prices.
"Victoria remains the second fastest growing state fuelled by an increasing share of overseas migrants and now migrants returning home from a stint in Queensland," Mr Matusik said.
"People feel that whilst interest rates have risen a little bit, they can get into the southern housing markets a little easier than they could in 2002 and 2003 when migration to southeast Queensland peaked."
According to the Real Estate Institute of Victoria, Melbourne house values fell 4.9 per cent in the March quarter.
Sydney apartment prices fell by 8 per cent in the year to April, according to CPM Research.
Real Estate Institute of Queensland research manager Fiona Bergin said the slowing population growth could cause problems for some developers.
According to PRDnationwide, sales of inner-city apartments in Brisbane hit their lowest level in six years in the March quarter.
However, Ms Bergin said house rental vacancy rates were a low 1.66 per cent for Brisbane in the March quarter. This would put a floor under Brisbane house prices, she said.
Mr Matusik said some southeast projects had been put on hold or abandoned which would also help ease supply.
Since the end of the property boom, developers have abandoned plans to develop more than 7000 apartments across the country.
However, there are still more than 10,000 apartments under construction and expected to be completed in Sydney, Brisbane, Melbourne and the Gold Coast in the next 12 months.