Rocky approaching ‘top tier’ of real estate price growth
Rockhampton is “approaching the top tiers” of housing price growth, according to analysis by the Real Estate Institute of Queensland.
REIQ CEO Antonia Mercorella and chairman Peter Brewer visited the Frenchville Sports Club on Wednesday as part of a trip across the state, updating residents on their local real estate market.
Ms Mercorella said the regional market was performing “in a way that we’ve not seen in a really long time”.
“It’s certainly a very positive market here in Rockhampton,” she said.
“Vacancy rates at the moment are sitting at 0.6 per cent, so it’s a very tight market.
“It really talks volumes about the level of rental demand that there is for Rockhampton property, and then in terms of the sale market, again we’ve seen really strong demand, and that’s been driven both by local buyers and interstate buyers.”
She said affordability, liveability, and the prospect of economic growth thanks to various infrastructure projects attracted people to the Beef Capital.
“It’s hard to know whether what we’re seeing is a permanent state of affairs or whether it will be short-lived,” Ms Mercorella said.
“We’ve seen those vacancy rates from early last year, they’ve stayed very, very low.
“As to whether they’ll stay permanently, only time will tell, but certainly ABS data tells us that interstate migration is at an all-time high, the highest we’ve seen in more than 20 years, so it does seem to be that the appeal of the Sunshine State is very strong at the moment.”
She said that while rental affordability was “relatively good”, landlords were beginning to get better rates of return on their properties.
There was also a trend, Ms Mercorella said, of more people deciding to buy homes rather than rent.
“That’s of course being fuelled by the grants ... and because of low interest rates,” she said.
“We’ve got historically low interest rates, so I think all of those things combined do make it quite appealing for people who have been thinking about making a move from the rental market into the sales market.”
An REIQ analysis said that in the early period of COVID-19, Rockhampton recorded a median price of $170,000 and rent of $270.
Now, it said, “Rockhampton is precariously approaching the top tiers of Queensland’s real estate price growth and is the leading major regional centre when it comes to increasing in size and power”.
In April, there were 306 properties on the market within the central Rockhampton district (Rockhampton, Allenstown, Wandal, The Range, West Rockhampton, Depot Hill, Port Curtis, Fairy Bower, The Keppels) with another 618 for sale in the wider region (Berserker, Frenchville, Norman Gardens, Park Avenue, Kawana, Koongal Rockyview).
The number of properties available has dropped every month since January 2020 (342), with properties selling under 30 days increasing on average by 80.4 per cent.
Those sitting on the market for more than 180 days (241 properties) has fallen by 34.6 per cent.
“Vacancies dropped to their historic lowest 0.2 per cent in August 2020,” the analysis said, “and since December (0.3 per cent) have been edging ever so slightly upward over the last three months.
“0.6 per cent represents 18 current vacancies on the market.”
Median house price: $167,000
Three bed median: $215,000
Rent Median $270
2 bed $255
3 Bed $290
South & West
Median house price: $260,000
Three bed median: $285,000
Rent Median $300
Median house price: $260,500
Three bed median: $275,500
Rent Median $340
Median house price: $315,000
Three bed median: $315,000
Rent Median $340
Median house price: $241,000
Three bed median: $262,000
Rent Median $320
Frenchville (close to CQU Campus)
Median house price: $322,500
Three bed median: $276,000
Four bedroom: $410,000
Rent Median $368
Norman Gardens (top end of the market – borders CQU Campus)
Median house price: $398,750
Three bed median: $300,250
Four Bed median: $445,000
Rent Median $395
Originally published as Rocky approaching ‘top tier’ of real estate price growth