Mackay leads property market

Queensland’s industrial powerhouse regions are set to drive the States real estate market this year as property values in the southeast corner remain sluggish.

The median house price in Brisbane fell by 1.2% in the three months to the end of December, figures released by the Real Estate Institue in Queensland show.

Prices on the Sunshine Coast also went backwards by 1.1 per cent, while the Gold Coast recorded a modest 2.1% rise.

REIQ managing director Dan Molloy says it will be the second half of 2011 at least before there is any turnaround in the southeast.

A year on year increase in Brisbane prices disguised the fact “the market was moving sideways” for the second half of 2010 he said.

It’s a different picture in some regional centres, with Mackay leading the charge. Values in the north Queensland city rose 7 per cent between October and December and 5.8 per cent for the year.

“We’re expecting this year to be really big”, REIQ regional chairwoman Stacey Arlott said. The mines are going ahead and the year has started really strongly.

Researcher Terry Ryder of hotspotting.com.au said it was worth thinking about investing in these regional centres

How the regions performed:

Area Median price Dec quarter quarterly change

Brisbane $525,000 -1.2%

Gold Coast $490,000 +2.1%

Mackay $420,000 +7%

(For an extended version of this report refer to The Sunday Mail, February 20, 2011).