TARYN PARISTUE 23 FEB 21
Queensland is booming according to Westpac’s Housing Pulse Report.
Senior economist Matthew Hassan said the state’s markets were now very tight with “sales running well ahead of listings and extremely tight rental vacancy rates in most areas” tipping the market into a boom.
“Market turnover has continued to hold well above pre–pandemic levels and prices are pushing new historic highs,” Hassan said.
“While there are some soft patches—Brisbane’s inner city and tourism exposed areas—the state’s wider fundamentals remain very constructive.”
Domestic migration to the Sunshine Coast, Gold Coast and Cairns has bolstered a double digit price growth in the past six months. Westpac reported sales were running “well ahead of listings” down to just 3.4 months of sales in Brisbane, where the long run average was five months.
“The Queensland Consumer Housing Sentiment index points to more turnover gains ahead suggesting the market will become tighter still as 2021 unfolds,” Hassan said.
Brisbane house prices
^Source: Westpac Housing Pulse - February 21
Nationally Hassan said price expectations had continued to soar. The Westpac-MI Consumer House Price Expectations Index has increased 17.8 per cent since November, to a seven-year high of 154.7.
In light of a strong housing upswing Westpac economists are now tipping a return of prudential policy measures in the second half of 2022, to cause a flattening in 2023.
NEW SOUTH WALES
Sydney dwelling prices were picking up. Hassan said units were still under-performing and restraining price gains in broader measures. Geography is still having a bearing on market performances, inner-city suburbs including Parramatta and Ryde were “sluggish” while regional areas including the Central Coast and Northern Beaches were rebounding strongly, as was regional NSW.
“Demand has run well ahead of listings in recent months, especially for houses [and] rental vacancy rates are showing tentative signs of levelling out,” Hassan said.