New homebuyers and property investors in Queensland are facing increasing difficulties due to rising prices, as recent data shows a significant growth in house and unit prices. In the last quarter, house prices rose by 6.11% to reach $955,000, while unit prices jumped by 7%.
Antonia Mercurella, CEO of the REIQ Institute, pointed out that the biggest challenge is the shortage of supply, as the construction rate does not meet the growing demand. The National Housing Agreement targets building 49,000 units annually, but in reality, only 34,000 are being completed, with monthly building approvals falling 13% short of the target.
Furthermore, the global crisis and regional concerns have exacerbated construction material costs due to rising fuel and shipping prices. Under these conditions, most homeowners prefer to retain their properties rather than sell, leading to a significant drop in available housing, particularly in Brisbane and rural areas.
Mercurella also explained that price increases are driven by additional factors such as internal migration and population growth. She noted the impact of the federal government’s first-homebuyer support program, which has helped some buyers by raising the eligible price limits in Queensland.
