Queensland residential property continues to show strong long-term capital growth with many suburbs recording median price increases of more than 100 per cent over the past five years.
The Real Estate Institute of Queensland (REIQ)'s state-wide top house and unit performers over the past five years found property continues to pay dividends.
REIQ managing director Dan Molloy said the results were particularly satisfying given the difficult economic conditions of the past year. "The extreme predictions of substantial property price falls haven't at all come to pass.
Indeed over the June quarter property prices have rebounded across the State," he said. "These results show that property is, and will continue to be, a sound long-term investment vehicle with the ability to record excellent capital growth."
The top performer for houses over the five years to June was Marian in the Mackay Local Government Area (LGA) with a very impressive median house price increase of 219 per cent to $395,000. Marian is a riverside suburb located about 30kms north of Mackay and is the gateway to the Pioneer Valley.
It is a former rural township which has grown substantially over the past five years given its location en-route to many of the region's mine sites. Demand from mine workers has driven extensive new residential development in Marian as has its picturesque location adjacent to the Pioneer River.
The second best performer for houses was Deeragun in Townsville with median price growth of 161.7 per cent to $335,000. Its affordable new house and land packages were part of the reason Deeragun became increasingly popular with families and first home buyers five years ago with steady demand continuing.
Number three was Mount Morgan in the Rockhampton LGA with a median house price increase of 154.8 per cent to $132,500. Mount Morgan, about 40km southwest of Rockhampton, is home to the historic Mount Morgan Mine which began mining gold in 1882. The town's tag as one of the most affordable places to buy a home in Queensland has helped it take out the number three spot.
An interesting result in Brisbane was Darra, one of the capital city's most affordable suburbs, taking out top spot, while Hamilton, one of the city's most expensive suburbs, came in second. Darra's median house price increased 76.2 per cent over the five years to $343,500, while Hamilton's grew 71 per cent to $1.195 million.
"These results highlight the strong demand for both the top end and the more affordable end of the market over recent years," Mr Molloy said.
When it comes to the best performers for units and townhouses over the period it was demand for new developments in affordable locations that helped Loganlea and Caboolture in Greater Brisbane take out the number one and number two spots in the state respectively.
Loganlea's median unit and townhouse price increased 172.9 per cent over five years to $286,500, while Caboolture's grew an equally impressive 171 per cent to $284,000. "There has been a marked increase in demand for units and townhouses outside the inner city over the past five years which has ensured these more affordable areas are also now providing this style of housing," Mr Molloy said.
Outside of the southeast, the fourth best performer for units and townhouses was Bungalow in the Cairns Regional Council area. Its median price increased 152.9 per cent to $215,000 over the period, also due to a raft of new developments in the suburb.
