Resources boom underpins top suburbs
Nine of the top 10 performing Queensland suburbs over the past year are located in or close to resource-rich areas, according to the Real Estate Institute of Queensland (REIQ).
REIQ figures show that in the 12 months to the end of September, median house price growth has been the strongest in the suburban areas of Mt Isa, Belyando, Bowen and Cloncurry.
"Such results are not surprising when you consider the continuing strength of Queensland’s mining industry," REIQ chairman Peter McGrath said.
The best performing suburb was Pioneer in Mt Isa with a median house price increase of 65.7 per cent to $290,000 in the year to the end of September; second was Clermont in Belyando, which was up 63.7 per cent to $280,000; and third was Collinsville in Bowen which recorded 62.5 per cent median house price growth to $195,000.
"The resources boom means more and more people are working in the mining industry and being paid handsomely for it, so many are investing in property," Mr McGrath said.
"But also when you consider the low median house prices in areas such as Mt Isa and Bowen 12 months ago – they were well under $200,000- it is a lot easier to have that very strong level of growth when it is coming off a lower base."
And Mr McGrath said even with prices increasing more than 50 per cent over the year in the mining towns featured in the top 10 suburb list, prices still remained relatively affordable compared to many other areas of the State.
"Brisbane and the Gold and Sunshine coasts all now have median house prices over $400,000. With medians still under $300,000, investors especially will continue to be attracted to mining areas because they can make a very good return on their outlay," he said.
The odd one out in the top 10 list was Currumbin on the Gold Coast, which came in at number four. Currumbin’s median house price increased by 59.3 per cent to $795,000 in the 12 months to the end of September due to a significant number of waterfront properties sold over the year.
"The market for prestige living in Queensland continues to show very healthy growth and Currumbin has certainly benefited from this. Waterfront properties especially are attracting strong demand and with that multimillion-dollar price tags," Mr McGrath said.
Number five was Parkside in Mt Isa which recorded a 57.3 per cent increase in its median house price in the 12 months to the end of September to $289,500; next was Winston, also in Mt Isa, which was up 56.8 per cent to $294,000; Cloncurry’s median rose 55.9 per cent to $230,000; eighth was Soliders Hill in Mt Isa, with an increase of 53.2 to $295,000; Gladstone City rose 51.6 per cent to $352,000; and 10th was Townview in Mt Isa which recorded a 48.7 per cent increase in its median house price to $290,000.
All medians were affected by varying quality of stock sold.
