Southern home market stirring
PROPERTY sales in Ipswich's southern suburbs are expected to slowly improve this year, according to research by PRDnationwide.
Its first quarter overview covering the southern suburbs of Yamanto, Flinders View, Churchill and Raceview said the market was continuing to recover from the 2011 flood.
However, the PRDnationwide report said an oversupply of affordable houses was expected to attract first-home buyers to the suburbs.
"The lure of well-priced property rekindles the interest of first-home buyers and young families," the report said.
Despite this, the report warned an existing oversupply was putting downward pressure on prices due to weak demand.
"A growing number of buyers are transacting in the sub $300,000 price range," the report said.
"This is evidenced by the gradual decrease in median price over the past two years.
"There is currently an oversupply of affordable house and land deals in the immediate area that are not moving, which is diluting resales in the established market and subsequently placing downward pressure on prices."
The report also stated stagnation in rental prices was keeping potential buyers out of the market.
"Median rents recorded for the 4305 postcode demonstrated a stagnant increase in rental prices across all house types over the past three years.
"The evidence suggests that current rents are nowhere near high enough to make an impression on renters to contemplate entering the property market."
In the six months to December 2011 Yamanto was the only suburb of the four to enjoy an increase in sales year on year, rising from 27 in the December 2010 half year to 56 in the same period in 2011.
Despite this, median prices fell by 4% in the corresponding period.
In the December 2011 half year sales in Raceview were down 13%, in Flinders View 31% and in Churchill 40%.