QLD scorecard: How did Rocky’s property market fare?
ROCKHAMPTON’S real estate market has ranked second on a Queensland performance scorecard.
Only Mackay fared better (see rankings in table below) in research conducted by Propertyology - one of Australia’s most respected market analysts.
Propertyology examined Queensland’s 11 major metropolises on a range of measures and its head of research Simon Pressley said there was further good news for Rocky with it ranking first in housing affordability and rental yield.
Mr Pressley said the city had a unique combination of healthy numbers for tenants, first home buyers and property investors.
“Rockhampton’s median house price of $260,000 is incredibly affordable,” he said.
“To be frank, it’s staggering for a city of such substance.
“Affordability provides significant upside potential plus it’s arguably the single biggest risk mitigant for all property owners.”
Mr Pressley said there were more than 100 regional towns which had a more expensive median house price than Rockhampton, but most of those didn’t have a population mass in excess of 80,000 as Rockhampton did.
“The median household rent of $300 per week is still very affordable for tenants while the six per cent rental yield is attractive for property investors,” he said.
Mr Pressley said the $260,000 median house price was comparable to mid-2017 when Rockhampton was one of the strongest property markets in Australia.
“Mild declines in Rockhampton real estate values during each of the last five calendar years look like being repeated again this calendar year, however, Propertyology is optimistic about future years,” Mr Pressley said.
“Very tight credit supply over the last couple of years acted like a lead-weight on property markets all over Australia, with house price falls in Sydney, Melbourne, Darwin and Perth all larger than Rockhampton over the last 12 months.”
Mr Pressley said improved credit supply and three recent interest rate cuts meant that home ownership in Rockhampton today was the most affordable it has been in the city’s history.
Propertyology also foresees much improved economic conditions for the region in the coming years.
“Job creation and local confidence will improve through important projects such as construction of the Rookwood Weir, major road infrastructure projects and the Singapore military project,” Mr Pressley said.
“The resources sector has also rebounded strongly plus water security will do wonders for local agriculture.
“Economic growth is typically the biggest driver of property price growth.”
Mr Pressley said that Rockhampton’s low residential vacancy rate of 1.5 per cent – down from 3.5 per cent four years ago – was an important sign that some pressure was building within the local real estate market.
Propertyology expects buyer activity to increase in the first home buyer segment and from investors.