Dear Elk Member,

Greater Brisbane house prices are at a new record high at $632,999. House prices have risen modestly for seven consecutive quarters, up a further 1.7 per cent over the March quarter. This is 6.2 percent higher than the same time last year. This has provided homeowners with steady capital growth.

The Sunshine Coast could soon become Queensland’s priciest place in which to buy a house after median prices surged to a record $770,000 following one of the strongest rates of annual growth across Australia.

House prices in the sun-drenched city rose a staggering 19.4 per cent – or $125,000 – over the past 12 months and an incredible 6.9 per cent in the March quarter alone, the Domain House Price Report for the March quarter revealed, with a near once-in-20-year boom ignited by roaring rates of interstate migration.

While the Sunshine Coast has continued to outperform the rest of the state for a few consecutive quarters, the report revealed South-east Queensland’s coastal hotspots continued to reap the benefits of an exodus from major Australian hubs, with the Gold Coast also clocking a record high median house price of $749,950, following a 4.2 per cent quarterly rise and 15.4 per cent annual jump.

Domain senior research analyst Nicola Powell said the figures demonstrated the compelling pull of lifestyle precincts within a new world where more and more Aussies worked remotely and could swap the concrete jungle for less traffic and more sand.

“The Gold and Sunshine coasts continue to be standout performers, although the pace of price acceleration appears to be easing on the Gold Coast,” Dr Powell said.

“South-east Queensland’s housing market has become increasingly popular with interstate buyers and the number of Australians relocating to Queensland from other states is at its highest level since 2006.”

“Changed lifestyle preferences post-lockdown and the option of remote working has driven demand to south-east Queensland as buyers are drawn by affordability, liveability, climate and greater value for money.”

The seachange movement of interstate buyers to Southeast QLD has been expanded due to the COVID situation and the increased ability to work remotely.

Brisbane and the Sunshine Coast have been such a stable market for a number of years where it hasn’t seen major swings either way, so there are probably greater legs on this price rise.

Median House Prices:

- Brisbane $632,999
- Gold Coast $749,950
- Sunshine Coast $770,000 (up 19.4% year on year)

NAB Hedonic Property Value Index:

NAB now expects property prices in Australia’s six state capital cities to increase by an average of 14.1% this year. Using the NAB Hedonic Dwelling Price Forecasts, Brisbane is expected to grow by 15.2% as compared to the average. Why is NAB so bullish about property prices this year:

1. Record low interest rates
2. The unexpectedly fast economic recovery.

Opportunity cost is a real issue and consideration in a rising market. Opportunity cost represents the potential benefits an individual, investor, or business misses out on when choosing one alternative over another, such as choosing not to do anything. The idea of opportunity cost is a major concept in economics.

Continued good financial management.

Ian Kebblewhite
Coach

Main Image Source: Centre for the Government of Queensland. https://queenslandplaces.com.au/exhibit/postcard/pc0064

Aura Research & Information Document (Titled ‘Aura Prospectus’): Source Stockland, Aura. https://www.stockland.com.au/residential/qld/aura/location/business-park

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