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MAJOR REPORT ON HOME PRICES IN SOUTHERN QUEENSLAND RELEASED
Major report on home prices in Southern Queensland released
Movements in the share market, disposable family income and the unemployment rate have a strong influence on house and unit prices in southeast Queensland, according to a new report on what factors drive the region’s housing market.
The report, by economic consultants AEC Group and using Corelogic RP data, also confirms that the biggest influence on the supply of housing is prices rather than government policy.
It insists that the factors influencing southeast Queensland’s housing market are different than those for the rest of Australia in that increases in the supply of housing did not necessarily lead to decreases in housing prices.
Local Government Association of Queensland chief executive Greg Hallam said the AEC Group analysis was the first in-depth economic study of what factors influenced the demand for and supply of housing in southeast Queensland.
'It’s an enormously valuable report because it shows that the SEQ market is unique. You cannot assume that the factors driving prices elsewhere in Australia will apply to this region,' he said.
'The report also underlines the spuriousness of claims that there is an undersupply of housing in SEQ. In fact, the report states that stocks may be in oversupply, thereby suppressing house prices.'
He said one of the most interesting findings in the report was that factors affecting housing demand according varied from one council area to another.
'For example, increases in disposable income had a strong influence on house prices in Logan and Ipswich but in Brisbane the big factor affecting house prices is the home loan rate,' he said.
'When it comes to prices for residential units, on the Gold Coast home loan rates, real disposable income and the unemployment rate are the big influencers, while on the Sunshine Coast, movements in the All Ordinaries Index are significant.'
Local Government Association of Queensland
LG House, 25 Evelyn Street, Newstead Qld 4006
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