This article is from the Australian Property Journal archive
Regional centres across the west of Queensland are experiencing a boom with strong house price growth and sales activity, according to the latest research from the Real Estate Institute of Queensland.
According to the REIQ, Roma, Barcaldine, Longreach and Goondiwindi are leading the western Queensland property upsurge.
Property prices in Roma have recorded 22% growth in the median house price between 2005 and to the end of June 2006 and in Barcaldine prices have jumped 29%.
Whilst in Longreach and Goondiwindi, prices have risen 10% and 8% respectively.
REIQ’s chairman Peter McGrath said while many of these areas had been experiencing above average growth for up to three years or more, the past year in particular had galvanised the booming property markets.
“This phenomenon is unique because unlike the exceptional growth in the Queensland mining districts, towns like Roma and Barcaldine are experiencing property market growth for different reasons.
“Prosperity in other non-mining industries, such as primary production and energy, is the reason towns in western Queensland are performing well,” he added.
Roma, which is the largest town in south-western Queensland, has a population of approximately 6,800 in the town area and approximately 15,000 in the surrounding region.
“The drought is affecting agriculture in the district surrounding Roma but in this case the strength of the economy and the subsequent growth in population is due to the demand for local oil and gas.
“We are finding that the vast majority of house sales are to locals and not to investors. The problem now is lack of housing supply and an inability to source the people to build new homes. Despite this there are two new residential subdivisions being developed which should ease the supply problem for a while. However, locals admit the major problem is a lack of land being released for development,” McGrath said.
According to the REIQ, rents across the region are also strengthening with many local agents reporting a nil vacancy rate and record rental prices.
Rental figures from the State Government show the median weekly rent paid for a three-bedroom house in Roma has increased from $185 for the June quarter last year to $210 for the June quarter 2006.
McGrath said that concerns about housing affordability are not just the domain of city dwellers.
“Young people in regional western Queensland are staying at home or having to rent for longer periods of time,” he concluded.
By Kathryn O’Meara
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Western Queensland – established house market#
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Locality
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Year
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Number of Sales
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Median Sale
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BARCALDINE
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2005
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28
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$75,280
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BARCALDINE
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2006*
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31
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$98,000
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CHARLEVILLE
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2005
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96
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$81,500
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CHARLEVILLE
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2006*
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35
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$90,000
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LONGREACH
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2005
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71
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$138,000
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LONGREACH
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2006*
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35
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$145,000
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ROMA
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2005
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191
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$148,000
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ROMA
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2006*
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120
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$180,000
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WINTON
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2005
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21
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$65,000
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WINTON
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2006*
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14
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$66,250
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GOONDIWINDI
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2005
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106
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$207,500
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GOONDIWINDI
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2006*
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53
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$223,000
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* Based on sales year to mid-June 2006
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# Data based on house sales on land sized under 2,400m2
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Source: REIQ
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