Rate cut delivers late autumn spike to Queensland real estate
Media release - 21st May, 2015
The Reserve Bank of Australia’s decision to deliver a 25 basis point cut in official interest rates in early May has helped create a late autumn property rush in Queensland, according to leading real estate group, Raine & Horne.
“Up until early May the market in Logan City, which is between Brisbane and the Gold Coast, had been stuttering and the February rate cut hadn’t been much help,” said Dennis Wey, Co-Principal of Raine & Horne Beenleigh.
“But when the RBA slashed rates to a record low of 2% this month, the autumn property market took off.
“The enquiry level jumped immediately and was ferocious, with investors from Sydney leading the charge. About 90% of enquiries this month have come from Sydney investors, either directly or via buyer’s agents.
“The Sydney investors have recognised that there is plenty of value in our region and we expect the May rate hike will provide the fuel that gets the Beenleigh market motoring.”
Mr Wey believes the market spike can be linked to a growing perception that Sydney investors are looking further afield for value.
“Any three bedroom houses in Beenleigh that are priced from the late $200,000s to the early $300,000s are selling consistently,” said Mr Wey.
“Near new two bedroom apartments in this price range are also popular as savvy investors are recognising the deprecation benefits of newer stock.”
“We had a record month in April by doubling our sales averages for the month, and then the RBA delivered the rate cut to immediate effect,” said Ms Wells, who is Principal of Raine & Horne Burpengary/Narangba and Raine & Horne Morayfield/Caboolture.
“There were a couple of properties we were negotiating on the day the RBA met, and thanks to Glenn Stevens’ rate cut, we got across the line that day.
“With a median price in our region of $400,000, a rate cut of 0.25% can generate a saving of $5,000 or $10,000 over the term of a loan, which could make a big difference for the buyer.”
Apart from lower interest rates, Ms Wells confirms there has been a significant surge in Sydney investors, which is driving the Moreton Bay market.
“This autumn market has been better than a traditional spring market, and we’re getting back to boom levels with prices starting to rise,” she said.
“We are selling plenty of properties even before we have time to post them to internet. I can’t see this situation changing as we move into winter.”
“We’ve had plenty of homeowners contacting us for appraisals but lower interest rates have actually made it easier for them to sit on their hands and do nothing,” said Mr Lynch.
“As a consequence, the number of established homes for sale is about 30% lower than this time last year, yet there is still plenty of buyer interest, especially from the southern states.
“Therefore if you are considering the sale of a house in Toowoomba, I believe homeowners will be suitably surprised by the prices they can attract.
“On the flipside, buyers and investors recognise that with a median three bedroom house price of $358,000, Toowoomba – which is one of Queensland’s biggest and most economically diverse regional towns – represents excellent value.”
For further media information contact:
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400