THE PROPERTY DEVELOPMENT REVIEW
“In December the market was starting to look quite weak, but we got some data in January showing it has rebounded quite quickly,” she said. “We will get a clearer idea in February, particularly if rates are cut, and further into March.” While Perth was leading the way for price growth, south east Queensland was second. “The Gold Coast saw house prices grow 9.3 per cent, Brisbane grew by 9.1 per cent and the Sunshine Coast saw 6.2 per cent growth,” Ms Conisbee said. “Unit price growth is moving even quicker which has a lot to do with the fact that very little has been built and the cost of building has increased. “The median for Gold Coast apartments now sits at $870,000, which is almost as expensive as Sydney apartments.”
Ms Conisbee explained how south east Queensland could potentially be impacted by a rate cut in February. “Historically Sydney and Melbourne have seen the biggest impact, with Sydney seeing the biggest jump in house prices. Brisbane sits around the middle,” she said. “But this time it could look quite different because since the last rate cut we have seen the gap between Sydney/ Melbourne and Brisbane close quite significantly. “So we could see rate cuts have a bigger impact on the Brisbane market this year.” During the pandemic, Australia saw a huge increase in construction costs, which Ms Conisbee said came from a series of challenges including supply chain blockages, labour challenges as skilled migrant workers couldn’t enter the country, productivity challenges, and insolvencies. “Brisbane saw the biggest spike in construction costs in Australia,” she said. “During the pandemic there was a lot of flooding, lots of people relocating here, lots of major projects like the casino. That put a lot of pressure on labour and supply chain issues. “Luckily, construction costs are moderating in Queensland, whereas Western Australia and South Australia prices have re-accelerated.”
February / March 2025 – 7
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