BRISBANE'S property market is still going strong despite a year of rising interest rates. Preliminary figures to be released by the Real Estate Institute of Australia today reveal an 11 per cent increase in the median price for houses within a 5km radius of Brisbane's inner city.

Suburbs in the middle ring (5km-20km from the centre) and outer ring (more than 20km from the centre) also recorded price increases.

Median house prices throughout the Brisbane statistical division increased to $330,000 – up from $310,000 since the September 2005 quarter.

In the regions, Townsville performed well with a 15 per cent increase in the median house price to $299,000.

Cairns also fared well, with a 12.3 per cent increase to $310,000.

The Sunshine Coast market recorded a drop during the last quarter, according to the figures, with the median house prices down by -0.8 per cent: although it still recorded an increase over the year to $385,000.

The Gold Coast was quiet, with no increase recorded in the September quarter; but a yearly increase of 6.7 per cent brought the median house price to $400,000.

In units and townhouses, many areas experienced a drop in median house price over the September quarter but positive results throughout the year.

The information was collated using preliminary data supplied by the REIQ.

REIQ chairman Peter McGrath said the preliminary results showed that the greater Brisbane area had been a standout performer in the September quarter, in terms both of volume of sales and of median sale price growth.

"With the exception of units and townhouses in outer Brisbane, median sale prices have increased or held their ground over the last quarter, and the volume of sales is up for both houses and units across the Brisbane area as well," he said.

"The substantial increase in the volume of sales in inner Brisbane shows that people are seeking alternatives to traditional housing."

Mr McGrath said many were now choosing townhouses, apartments or villas in areas close to work and entertainment hubs, rather than house-and-land options further out.

He said the figures showed the market in Brisbane was still quite healthy.

Cairns had also performed strongly during the year. Mr McGrath cited reasons including an exodus from Innisfail after Cyclone Larry in March, and flow-on benefits from the resources boom.

 

source: The Courier-Mail