Shock suburbs where home values have soared across Queensland

Analysis by PropTrack shows that house prices increased across 639 Queensland suburbs during the December quarter, while 94 suburbs recorded price drops and eight suburbs remained unchanged.

REA Group senior economist Anne Flaherty said that even in the suburbs where prices fell the drops were marginal.

“First of all, there wasn’t many of them, and when you compare the drops against the growth over the past few years, it was not enough to shift the dial and make them more affordable,” she said.

“That’s why we are seeing a bigger share of buyers looking at properties further out from the (Brisbane) CBD and into the regions.”

And that flow-on effect is pushing up values in other parts of the state.

Fourteen suburbs recorded double-digit house price growth over the past three months, with nine of those in Townsville, four in Central Queensland and one in the Mackay-Isaac-Whitsunday region.

The top five suburbs for house price growth were all located in Townsville and included Heatley (+11.5%), Charters Towers (+11.1%). Currajong (+11%), Thuringowa (+10.9%) and Vincent (+10.6%).

The data showed that Vincent also recorded the biggest yearly increase for houses, up a massive 39.1% compared to the same time last year.

It was followed by Heatley (+36.7%), Cranbrook (+36.5%), Rasmussen (+36.5%) and Rockhampton (+35.8%).

REA Group senior economist Anne Flaherty says buyers are keen to look beyond Brisbane and into regional areas. Picture: supplied

Maidment Group managing director Glen Maidment said first-time homebuyers, growing families and investors had flocked to their Sanctum estate at Mount Low, with 50 lots, starting from $209,000, sold in just four weeks.

The median house price in Mount Low, which is about 25 minutes north of Townsville, is now $605,012, up 8.2% over the quarter and 28.9% in 12 months.

“With land prices far below those in southeast Queensland and a growing local economy, Townsville has become an attractive alternative for buyers and investors,” Mr Maidment said, adding that half of the 18 luxury apartments offered at Marina Residences had also sold with a month of launch.

“Townsville is undergoing a transformation,” Mr Maidment said.

Meanwhile, Brisbane’s top performing house suburbs over the year all had median prices below $650,000, led by Lowood, Brendale and Dinmore.

But the state’s top performing suburbs for the year were dominated by unit markets in Woodridge (+43.1%), Logan Central (+43%), Slacks Creek (+41.7%) and Durack (+40%), followed by houses in Vincent.

Ray White AKG chief executive Avi Khan, whose teams looks after many Brisbane’s southside suburbs, said some were “sort of no go zones” for buyers about five to six years ago.

But he said as prices continued to rise, and councils embarked on works to improve and beautify areas, the demographics were changing.

“We have had this perfect storm of buyers looking between $400,000-$700,000 over the past few years so that price bracket has been very congested,” he said, noting there had been an influx of investors competing with first home buyers.

“They are mostly first time investors out of Sydney and Melbourne,” he said.

Principal and chief executive of Ray White AKG Avi Khan says investors from Sydney and Melbourne have their eyes set on Queensland. Picture: News Corp Australia

“And where first home buyers might have previously looked at land and houses in the area, many can’t afford to buy anymore.

“So we have buyers competing with investors due the rental yields.”

Ms Flaherty said that with more and more suburbs pushing into the $1 million-plus club, buyers were having to make compromises on where they lived, and the dwelling type.

“When you consider things like wages, cost of living pressures, home values continuing to rise and rates remaining high, it is becoming increasingly challenging to save for a deposit,” she said.

Brisbane’s home prices dropped for the first time in more than two years in December, falling by 0.04%.

But the regions powered ahead, recording a combined 0.05% growth, according to the PropTrack Home Price Index for December.

However, median house prices in Brisbane were up 11.35% year-on-year, and a staggering 78% since the start of the Covid-19 pandemic in March 2020.

House values fell in just four suburbs over the year — Healy (-1.9%), Macleay Island (-0.8%) and Sunshine Beach (-0.7%), while only Port Douglas recorded a fall in unit values over the same period, down 1%.

Looking ahead, Ms Flaherty said she expected Townsville to be the “outperformer” again this year.

Real Estate Buyers Agents Association of Australia (REBAA) Queensland representative Joanna Boyd said a lot of clients, both investors and owner occupiers, were seeking assistance around pricing, adding there were still more buyers than homes.

“In that investor bracket, they are looking for properties around $650,000 to $850,000,” she said.

This six-bedroom house in Caboolture South to the north of Brisbane is currently on the market with an asking price of $877,000. Picture: realestate.com.au

“For investors, we have been buying mostly on the northside at places like Nerangba and Caboolture South.

“First home buyers are really looking around places like Nundah and Chermside for units.”

Ms Boyd said that it was “scary” when confronted with how much more money buyers would need to find if the price growth continues.

“I think we will see this a bit longer,” she said.

Meanwhile, the Gold Coast, which has been a magnet for interstate migration, has seen its home values soar by up to 17% in 2024, with beachfront suburbs leading the charge.

Kollosche agency principal Michael Kollosche predicted “modest to strong” growth for the city over the next 12 to 18 months.

Sunshine Coast home values increased by up to 16.5% over the year, led by units at Sippy Downs.

This article first appeared on realestate.com.au and has been republished with permission.