Marsden Area Property Watch Q3 2012

MARSDEN/ CRESTMEAD MARKET OVERVIEW


The following Property Watch report is the result of an investigation into the historic and current market trends of the Marsden and Crestmead suburbs, hereon referred to as the Marsden Area.


During the six months to April 2012, the Marsden Area house market registered a total of 120 transactions, representing a 17.2 per cent decrease in activity from the April 2011 half year period. Observing the Marsden Area House Sales Cycle chart, the house market has demonstrated a gradual decrease in sales activity since the stimulus driven market of 2009, where government incentives and low interest rates combined to underprop the market from the collapse experienced in 2008 following the Global Financial Crisis (GFC). Developer activity has since revised back to a lesser extent; however there are still several subdivision projects currently underway in the area which will look to bring new stock to the market during 2012.


The median house price continues to soften in the Marsden Area, with a modest 5.8 per cent correction over the year to April 2012 resulting in a median price of $295,000. The long term the median price trend has performed comparatively against other markets in the South East Queensland region, recording a 2.9 per cent average annual growth over the past five years. The rather buoyed median price can be attributed largely to the affordability of the market, with very little movement for values to correct any further. The House Price Points chart indicates a considerable increase in activity within the sub $300,000 market over the past three years, with softened property values shifting activity downward from the once dominant $300,000 to $349,999 price range. Furthermore, consecutive interest rate cuts since November 2011 (on hold at 3.5 per cent as at August 2012) appears to have made little impact on current sales volumes.

Sales activity across the Marsden Area land market has diluted during the year to April 2012 as the availability of land tightens and developer activity subsides. Further residential growth in the immediate area is likely to be facilitated via the Park Ridge/ Logan Reserve urban growth corridor which is earmarked to bring to market new residential estates in the coming years. The prevailing median land price of $198,000 indicates sustained demand for a product which is running low in supply. Whilst there are still several small subdivision prospects in the area, most large scale sites have already been exploited and brought to market.

Investor activity across the Marsden Area property market remains low, with little to no movement in rental price growth over the past three years and rather modest capital appreciation as indicated by the Average Capital Growth chart, placing a cloud over the short term growth prospects of the market. With that being said, the availability of competitively priced property in the current market affords many would-be property investors with an opportunity to secure a solid entry level property to kick start their property portfolio, with sound rental yields available to those who purchase well-presented property at the right price.