Queensland units sales increase while home loans become more affordable
First home buyers and property investors looking into buying a property in Queensland could be interested to hear about the latest report released by the Real Estate Institute of Queensland (REIQ), which highlighted that the preliminary volume of sales for units and townhouses increased nearly 40 per cent over the last 12 months.
Furthermore, the growth has increased by 15 per cent since the March quarter of this year, indicating a general upward trend for unit popularity across the state.
In Brisbane alone, the number of units and townhouses sold since the June quarter from last year increased by 26 per cent, and up by 21 per cent since the March quarter of 2013.
Anton Kardash, chief executive officer for the REIQ, said that the market was mirroring the overall growth being experienced across the country, following the Reserve Bank's decision to retain the cash rate at its historically low level of 2.5 per cent.
"Both the unit and house markets are gathering steam with sales volumes much improved on the same periods in 2012," said Mr Kardash in a September 6 statement.
"The June quarter is usually the weakest of the four quarters throughout the year. Over the last 12-month period, however, this quarter was actually the second strongest and very nearly wore the crown as the stand-out three-month period of unit sales activity."
Furthermore, the latest Housing Affordability report released by the Adelaide Bank and the Real Estate Institute of Australia (REIA) has indicated that proportion of household income needed to meet home loan repayments has decreased to 28.7 per cent, with Queensland experiencing the biggest drop.
"With the exception of the Northern Territory, all states and territories recorded improvements over the quarter, the largest in Queensland where the proportion of income required in order to meet loan repayments dropped by 1.9 percentage points to 26 per cent," said Peter Bushby, president of the REIA in a September 4 statement.
"The variable interest rate declined 0.2 percentage points, from 6.1 per cent to 5.9 per cent in the June quarter, which is a decrease of 0.7 percentage points compared to the same time last year and the three year fixed rate fell by 0.3 percentage points over the quarter and 0.9 percentage points compared to the June quarter 2012, to 5.1 per cent."