Marsden Property Watch Report 2013 Q2
The Logan Region Highlight Report analyses the performance of the residential real estate market within the defined Logan City Council. The report contains detailed investigations into two sub-markets within the region which include the Marsden Area and Shailer Park Area. Results of these investigations are intended to identify trends and commonalities that exist between each sub-market, though most importantly to gain an appreciation of the underlying drivers of each particular market.
The Logan City Council is located in between Brisbane to the North, and the Gold Coast to the South. Population estimates provided by the Australian Bureau of Statistics indicate that the city has experienced the fifth largest population increase in Queensland between June 2010 and June 2011, achieved through an increase of 4,577 residents. The city is also the fifth largest LGA in Queensland by population, as at June 30th, 2011.
The Logan Local Government Area (LGA) house market has been stable in recent times, as it continues its downward adjustment from the median price peak in the July 2010 six month period. Since that time median price has been steadily declining, and in the six months to 31st January 2013 the Logan LGA house market recorded a median price of $350,000. Sales activity in the region has been steady, with the area recording 1, 536 house transactions for the January 2013 six month period, an improvement of one per cent on the previous half year period. The unit market has underperformed in recent times, with sales coming back significantly, while median price has also declined. This is largely based around limited supply in the area, as well as the unit market not being particularly prominent. The land market has seen sales come also, however again is largely due to a lack of supply in the area. Despite sales activity dropping, median price has improved by five per cent, with the median land price being $210,000 for the January 2013 half year period.
The Marsden Area encompasses the suburbs of Marsden and Crestmead. The Marsden Area house market has performed largely in line with the greater Logan LGA, as the median price has experienced a steady decline. In the January 2013 half year period, the Marsden Area recorded a median house price of $280,000 which represents a five per cent drop from the previous six months. Similarly to the Logan LGA, the Marsden Area experienced a median price peak in the July 2010 six month period and the median price has been weakening since then.
Sales activity has dropped off in recent times also, with the Area experiencing 128 recorded transactions, a seven per cent reduction on the previous six month period. On a positive note, sales were up four per cent when compared to the same period 12 months previous. Since the July 2010 half year period, sales figures have been relatively consistent, indicating that the market is in a minor correctional phase as median price continues to drop. The house markets affordability should continue to be a draw card for the suburb and will continue to drive sales into the future.
The House Price Points chart further demonstrates the suburbs shift towards affordable priced property, with the $350,000 plus market experiencing a 10 per cent drop in sales activity in the six months to January 2013. Furthermore, the $250,000 to $299,999 price bracket amounted to 45 per cent of sales during the period, an improvement of 12 per cent from the previous period. With much of the sales activity focused towards the lower end of the market, it is hoped that the affordability of the area will fuel sales in the area.
The Land market in the Marsden Area has historically been heavily supply driven, as evidenced in the volatility of sales activity when observing the Land Sales Cycle. In the six months to January 2013, sales fell 22 per cent to 18 recorded transactions for the period. However despite this, median price has tracked nicely and closed the period at $195,000. The median price for land in the Marsden Area has remained largely unchanged over the past two years, indicating the land available is in demand and price appropriately.