Queensland has overtaken Western Australia to become the country’s strongest multi-sector property market for the first time, and the Australian Property Institute’s quarterly survey shows it is the only state where residential, office, retail, industrial and agricultural markets are all in positive territory. Demand has cooled in recent weeks, though Deloitte Access Economics expects the softness to pass, noting that “while housing price growth has softened, supply constraints are likely to keep upward pressure on prices over the medium term”.

The supply story continues to work in favour of those who already hold property. Housing Industry Association figures show new home sales fell 4.6% in June, cancellations of new home contracts jumped 50% in the month, and more than 80% of builders now expect commencements to fall by at least 5%. Loan Market Group data shows investor loan applications have dropped 31% since February, with owner-occupier applications down 26%. Fewer homes being started, and fewer investors competing for them, keeps existing stock scarce and underpins both values and rents.

The long view puts the current pause in context. Australian Property Institute data shows Brisbane house prices have risen 169% over the past 20 years, comfortably ahead of inflation at 67% over the same period, with Adelaide leading nationally on 175%. Deloitte says Australia is still not approving or building enough homes for its population, and that meaningful affordability relief remains some way off. Owners weighing a move this spring are best served by getting presentation and pricing right for a more measured buyer pool.

Johnson Real Estate covers sales and rentals across South East Queensland. Call 1800 SELL SMARTRE, or email sellsmartre@johnsonre.com.au.