The troubled NSW economy could spawn a wave of “economic refugees” keen to pursue job opportunities and flattening house prices in South-East Queensland.

RP Data’s research director, Tim Lawless, said NSW was going through a “rough patch”, with the highest state unemployment rate in the country.

Tim Lawless, RPdata, was quoted in an interesting article in the BrisbaneTimes this morning. 

Lawless said “I wouldn’t be surprised if there was a rise in interstate migration coming into Queensland,”

Historically, people moved to Queensland from the southern states because of differential property prices, but these have largely evened out, he said.

But the Sunshine State still offered attractive employment opportunities, particularly in the resources sector.

This is just another factor to add to the current real estate climate for Queensland if it happens.  I hope the State Government infrastructure planning improves over the next five years.

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If any property professional is not sure, or hesitant about fully embracing Auctions as the most effective property marketing strategy for the current Queensland market… read Sharon Saul’s comments below.

Stephen…As you are aware we are holding an outside broadcast with Kevin Turner at our office on Saturday 6 December.  We have co-ordinated this with an auction event to be held on the day. To date we have 8 auctions happening on the day and also 1 on the Sunday(due to religion).  The entire team is very excited about this. 

By the way, yesterday we had an auction in Raby Bay – 42 Sommersea Dve – it sold under the hammer!  First home in Raby to sell in 8 weeks!  We had 8 registered bidders and it was great!

If any office in the network is in doubt as to how to handle this market–AUCTION!    

Congratulations to Sharon, Craig and Graham and the team at Cleveland… they really are gaining tremendous market share and have carved out a real place for Raine & Horne in the Redlands.  

 

If you have a great property story send it to me, as others are always interested ssharry@rhq.com.au

                       

         

     

   

     

   

  

 

 

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Even though there are signs that the Australian property market is improving, there is starting to appear grossly conflicting forecasts from reasonably reputable sources.

Last night the ABC 7.30 report included an excellent review of the current thinking titled “House price uncertainty for Australians”. It is worth clicking on the link and select the story from the right hand window.

The Australian Property Monitors (APM) spokesperson stated that they anticipated a blanket fall in house prices across the nation of up to 10%. The Housing Industry Association (HIA) is forecasting that properties will remain flat for a period with no appreciable drop in prices.  The HIA estimate is based on the current housing demand of about 190,000 properties and the current building program of 150,000 houses/units under construction for the year.  This is a gap of 40,000 and is driving up rents in most markets with vacancy rates of less than 1% in some areas.  Additionally the current migrant intake is the largest for many years.

A representative for Reed Construction Data referred to the huge number of construction deferrals which are up 543% in the last quarter and heavily impacts on NSW and Qld.  Developers currently need 75% presale on unit developments before commencement, which is difficult in the current market.

Another issue that has not been taken into account within the current demographic and demand analysis is the number of vacant residential properties. The last census identified 830,000 vacant properties across Australia.  Michael Matusik is quoted and covers this in an article by Bob Wilson on hotspotting.  It will be interesting to see if Government can incentivate the owners of this significant resource to bring them onto the market for sale or rent. 

Paul Newall of Raine and Horne Financial Services (RHFS) has completed a review of the current market using information and forecast from the banks and lending institution.  Paul’s information points to a flat market for the next six months and then a gradual increase in sales volumes culminating in the mother of all property booms over the following three years.  Time will tell!!!

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