Queensland housing market slows

New figures from the Real Estate Institute of Queensland show the state's residential property market has softened after last year's very strong demand and price growth.

The REIQ house price data for the first three months of the year showed sales were down about 28 per cent compared with the same time last year.

Prices hit a plateau in most parts of the state, with Brisbane's median house price rising by just 0.1 per cent in the March 2008 quarter to $490,000.

REIQ chairman Peter McGrath said housing markets across Australia had been affected by the current uncertain economic climate and Queensland had fared much better than other parts of the country.

"This can be attributed to the influx of about 1,200 new residents into the state every week, our healthy economy, low unemployment and surging coal prices," he said.

"While price growth is flat across many parts of the state, homeowners should not forget about the increased equity they now have courtesy of the gains that were made last year."

Mr McGrath said the situation of not enough supply to meet demand should help the Queensland market in the future.

"While demand has certainly eased from the highs of this time last year, there are simply not enough new dwellings being built to meet the future requirements of our growing population."

REIQ figures show that the star Brisbane performers in the March 2008 quarter were reasonably priced middle and outer ring suburbs located between seven and 14km from the CBD.

Mr McGrath said heavier loan repayments for investors had resulted in upward pressure on rents.

"Over the longer term, this will have a positive impact on rental yields and encourage more investors back into the market," he said.

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