Home prices in Brisbane have taken a hit due to a decline in demand and an oversupply of new units, states the latest property data from the Real Estate Institute Queensland (REIQ).

Median house prices fell 1.6% in the September quarter, compared to the previous three months, though prices are still up 4.1% compared to the September quarter last year. Meanwhile, the median unit price of $440,000 has declined 1.1% compared to 12 months earlier after dropping 2.7% during the quarter.

Property analysts have been warning of price falls for months due to the glut of new buildings coming into the Brisbane property market.

The performance of property markets elsewhere in Queensland have been mixed, with growth discernible in the Gold Coast and Cairns, while unemployment continues to plague cities in central and north Queensland.

Antonia Mercorella, chief executive officer of REIQ, welcomed the announcement that the Adani Carmichael coal mine (situated north of the Galilee Basin in Central Queensland) would proceed, saying it would boost the real estate market in those areas. 

“Jobs mean growth and the regional communities of Townsville, Mackay and Rockhampton have been declared as hubs for the Adani workforce, which is great news for those real estate markets,” she said.

Median house prices (September 2016):
  • Greater Brisbane – $495,000 (up 3.1% from 12 months ago)
  • Gold Coast – $565,000 (up 5.6% from 12 months ago)
  • Cairns – $395,000 (flat from 12 months ago)
  • Gladstone – $275,000 (down 9.2% from 12 months ago)
  • Mackay – $318,750 (down 9.6% from 12 months ago)
  • Townsville – $330,000 (down 2.9% from 12 months ago)
Median unit prices (September 2016):
  • Greater Brisbane – $402,000 (down 2% from 12 months ago)
  • Gold Coast – $390,000 (up 4.8% from 12 months ago)
  • Cairns – $238,000 (up 4.4% from 12 months ago)