Saturday, January 1, 2011

Queensland Property Market Very Weak

"A NEW year will not necessarily bring renewed confidence to the southeast Queensland property market, with predictions it will struggle for at least another six months.

Economic forecaster BIS Shrapnel expects little price growth even if turnover increases. Senior project manager Angie Zigomanis said that while other states had seen a pick-up this year, Queensland's market was still very weak.

"The Queensland market collapsed a little later than other states, so it was natural it would take longer to bounce back," he said.

Property analyst Michael Matusik believes there is no end in sight for Queensland's property market slump, which is stuck in a buyer's market. He predicts sales will decline, properties will take longer to sell, there will be little or no price growth, and there will be slight falls in value during the year.


Mr Zigomanis predicts the first interest rate rise will be about June, and the second in the December quarter. He also believes investors may decide to re-enter the market towards the end of 2011.

Despite advertised stock levels falling away in the usual Christmas slow down, the total number of properties on the market was still 20 per cent higher than in 2009.

Australian Property Monitors predicts homebuyer activity to remain restrained in most markets early this year, with potential price growth by mid-year.

Its annual state-of-the-market report found that while Perth and Sydney would see strong price growth next year, Melbourne, Brisbane and Adelaide would experience more modest growth."

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