REIQ Reports "Buyer's Bonanza"

Another epic report from Queensland’s peak property body, The REIQ, has just been released and outlines what we’ve been seeing in the Bundaberg region – an unprecedented real estate boom.

Scott Mackey, Principal of RE/MAX Precision, says “it’s great to see the statistics reflect what we’ve been experiencing on the ground for the last three months.”

“The report always gives us a good platform to gauge what the next quarter might look like – and it’s all good. The market conditions are still rising with strong demand continuing,” Mr Mackey said.

The REIQ Bundaberg Zone Chair, Le-Anne Allan, said “out of town buyers – whether they’re in Brisbane, Sunshine Coast, Gold Coast or the southern states – are coming. Some southern-state purchasers were even buying sight unseen only a couple of months ago.”

“It’s also good to see young buyers are now getting into property. I’ve heard of stories where rentals are so tight here that there can be 20 or 30 prospective tenants at an open home for a rental. So, when they miss out, what are they doing? They’re buying properties instead,” Ms Allan said.

Scott also notes that the rental market is also prime to tap into for investors. “Our vacancy rates are still holding extremely low at 0.4%. It hasn’t been this tight since at least September 2008, and rents are on the up as the market climbs,” said Scott.

Now, let’s talk numbers. Here’s a snapshot from the Quarterly Market Monitor (QMM).

HOUSE MARKET
– Rising market conditions with strong growth in sales activity over the quarter (+20.5%) and over the year (+20.4%), along with improving median prices, up 5.5% over the year.
– Listing numbers down 11.7% over the year, with less time on market, down 8 days
– Median days on market: 50 days
– Stock on market: 7.8%
– Annual volume of sales: 1,347
– Quarter median price: $295,000
– Annual median price 5 years ago: $280,000

UNIT MARKET
– Median days on market: 98 days
– Stock on market: 5.8%
– Annual volume of sales: 251
– Quarter median price: $307,000
– Annual median price 5 years ago: $265,000

RENTAL MARKET
– Vacancy rate: 0.4%
– House yields: 5.7%
– Unit yields: 4.3%

If you’re interested in reading this issue of the QMM or would like to talk to us about what it means for you if you’re planning to sell, just give us a call!