Bottoming out: Why regional Queensland's glum housing figures could be sign of a recovery

Queensland’s struggling regional property markets are showing signs of bottoming out, making them ripe for a recovery, experts say.

The latest data from the Domain Group’s Regional House Price Report shows towns like Gladstone, Mackay, Rockhampton and Townsville, where houses prices have taken a significant hit in the past five years, appear to be stabilising.

House prices in Mackay, which fell by a whopping 28.8 per cent over the past five years, have decreased by a comparably paltry 5.9 per cent over the March quarter this year. Prices have fallen 10.3 per cent over the past 12 months alone but Domain Group chief economist Andrew Wilson says the decreases are slowing down, indicating the worst could be over.

“Mackay’s median house prices fell substantially over the March quarter following a general trend for the year (but) as one of Queensland’s most affordable destinations offering relaxed beachside living, the region may undergo a revival this year,” he says.

A similar scenario is unfolding in Rockhampton where the median house price remains flat at $315,000 over the March quarter. Overall, median prices in the region decreased slightly by 1.6 per cent over the year, which Dr Wilson says is encouraging.

“Rockhampton has started to show positive signs of stabilising following an extended period of subdued housing market activity,” he says.

Local Ray White principal David Bell says confidence is returning to the Rockhampton market, albeit slowly.

“I wouldn’t say there’s bucket loads of confidence back but we’re definitely showing signs of a slow and steady recovery,” he says.

“Prices aren’t increasing yet but the number of sales are, which is encouraging.”

In Townsville, prices have fallen 4.3 per cent this quarter — but, significantly, have dropped by only 2.9 per cent over the year.

Brad Matheson of McGrath Townsville says open home numbers are up, demand has increased and houses in Townsville’s inner city areas are being snapped up.

“I’d say confidence is building in Townsville again. People are coming back to the market, especially to the suburbs close ro the CBD – and in some cases we’re selling houses for over the list price, in multiple offer situations,” he says.

“That was unheard of 12 months ago. I’d say the market has bottomed out and now confidence is slowly but surely returning to the market. It’s going to take a while in the outer suburbs but the flow-on effect will eventually happen.”