PROPERTY prices in mining towns bounced back last year, with median house prices in some areas outperforming the entire state.
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Data from realestate.com.au revealed the year-on-year change for Blackwater, two hours’ drive west of Rockhampton, increased 138.4 per cent to $90,000 last year.
Not only that, sales increased from 74 in 2017 to 110 in 2018 and REA Group chief economist Nerida Conisbee said it was likely due to the reinvigoration of the minor sector.
“It’s interesting, even a very minor increase in employment can make a difference to house prices,” Ms Consibee said.
“Just say they employed 50 people and suddenly you have 50 additional people entering a suburb it can make a huge difference.
“Particularly it can make a huge difference in somewhere like Blackwater, which doesn’t have a very big population already and has a lot of cheap and unsuitable housing, so they start to develop a lot of new housing for that population and then that can make a difference.”
Ms Consibee said new development could make a big difference to median prices in suburbs that have historically been very cheap.
“Having a look on realestate.com.au you can see that an old home can be bought for $80,000 while a new home is $220,000,” she said.
“This change in the mix of properties is leading to a big jump in prices.”
Blackwater joined five other mining towns to report increase in median house price growth, which included:
- Clermont 37.6 per cent to $205,000
- Moura 33.3 per cent to $110,000
- Moranbah 23.1 per cent to $200,000
- Emerald 19.2 per cent to $298,000
- Dysart 15 per cent to $84,500
Closer to Brisbane, Mount Mee in the Moreton Bay Regional Council area, was another top performer, with a 51 per cent increase in median house values to $770,000.
Ms Consibee said the appeal in the area was the ability to purchase a beautiful home on a big block for a relatively affordable price.
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“It is also within commuting distance to Brisbane and close to Caboolture,” she said.
“I think a combination of factors are driving prices in this area.”
The realestate.com.au data revealed Brisbane was still outperforming Melbourne and Sydney, with prices in the inner city ring up 2.2 per cent, as opposed to the decline of -1.48 per cent and -5.93 per cent (respectively) in the southern states.
Paddington, part of the inner city ring, was not only the most popular inner city suburb viewed in Queensland last year, but also the entire state.
“Given that Brisbane pricing has remained flat over the past 12 months, Paddington is clearly outperforming,” Ms Consibee said.
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“High views per listing isn’t an exact science to forecast price increases, but it does seem to be consistent that high views per listing leads to that suburb outperforming the market.
“Paddington will do really well this year.”