Shailer Park 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 Shailer Park Area is represented by the suburb of Shailer Park, Daisy Hill and Cornubia. The Shailer Park Area house market has continued to subside since its price peak in January 2011, where it recorded a median price of $482,500. Since then the median price has declined steadily, and looks as though it is beginning to reach a plateau. For the most recent January 2013 six month period, the Area recorded a median price of $431,500. This is a drop of one per cent from the previous six month period, and four per cent from the corresponding January 2012 period.
Since the median price peak and the following successive periods of price softening, sales have remained generally steady, with sales activity in the July 2012 and January 2013 six month periods improving compared to 2011. In the January 2013 half year period, there were 166 recorded transactions, a drop of five per cent on the previous period, however an improvement of four per cent over 12 months. This improvement in sales activity in the Area may be attributed to the increased affordability currently being experienced, with buyers more willing to commit to purchase at a more affordable price point.
Observing the House Price Points chart, again, the shift towards more affordable price points is obvious as the high end of the market has retracted significantly over the past three years. Most recently, the most dominant price bracket was the $300,000 to $399,999 which occupied 37 per cent of transactions for the January 2013 six month period, an improvement of nine per cent from the previous half year period. When looking at the higher end of the market, in January 2011 houses priced from $600,000 plus range accounted for 29 per cent of transactions. Fast forward to January 2013, and the same price range accounted for only 12 per cent of transactions for the period, representing a 17 per cent reduction.