Yamanto Area Property Watch Q3 2013
The Ipswich LGA house market has performed reasonably over the past years given the general economic climate and state of the property market, in combination with the flooding which occurred throughout Queensland in January 2011 and 2013. Proceeding the flooding events of 2011 and 2013, dips in the number of sales are clearly evident in the periods ending April 2011 and April 2013. Most recently, after recording its strongest period during the six months October 2012 (with 1,235 transactions) since late 2010, sales fell a sharp 17 per cent (to 1,021 recorded transactions), due to the most recent occurrence of flooding in the area. Prior to the most recent flooding, the Ipswich LGA was tending upwards, with consecutive periods of growth spurned on by the increased affordability in the region.
This increased affordability in the region is evidenced by the lowest median price in five years witnessed during the six month period ending October 2012, which dipped to $291,000. Prices rebounded in the ensuing six month period ending April 2013, recording a median price of $305,000 which represents a five per cent increase. Although this median price was three per cent lower when compared to the corresponding April 2012 six month period, signs are that it is trending back to previous levels.
New home and land sales in the Ipswich LGA have been less affected by flooding, and the reduction of sales has been largely due to the reduced number of parcels available. The median price has trended down slowly, though remaining relatively stable. The previously touted First Home Owners Construction Grant (FHOCG) has unfortunately done little to encourage and increase the number of vacant land sales in the area.
The Yamanto Area encompasses the suburbs of Raceview, Flinders View and Yamanto. The Yamanto Area house and land markets have seen some stability over the past few years, as median price has levelled out while sales have seen a moderate decline. In the six months ending April 2013, the Yamanto Area experienced 129 recorded house transactions, down 15 per cent on the previous six month period, and another 22 per cent down on the corresponding period 12 months earlier.
The Yamanto Area has performed better than the wider Ipswich LGA in terms of median price by $10,000, recording a final median house price of $315,000 during the most recent six months ending April 2013. This median price represents no change from the previous October 2012 six month period, and a relatively minor five per cent drop when compared to the same period 12 months earlier, where it experienced small growth over the six months to April 2012. The stabilisation of median price in the market can be attributed to the affordability in the region, however with transaction numbers dropping off and mortgage options at their most affordable, vendors may need to further reduce their prices to encourage fast and easy transactions.
The Yamanto Area new house and land market has performed in a similar vain to the established house market, however on a lesser scale. Conversely to the house market, the Yamanto Area new house and land market recorded a lower median price when compared to the wider Ipswich LGA, ending the April 2013 half year period with a median price of $165,000 (which is $9,000 less than the Ipswich LGA). Sales have tapered off since the six month period ending April 2012, however have remained relatively stable over the past 12 months, with the half year period ending October 2012 recording 44 transactions, while the half year period ending April 2013 recorded 43 transactions.
The rental market in the Yamanto Area has remained stable over the past three years, with three and four bedroom houses the most popular rental options. With the median weekly rental price for a three bedroom house at $275, and $330 for a four bedroom house, it can be seen that the affordability of the Yamanto Area applies for the rental market as well. This may be part of the reason why sales have slowed up, as buyers choose to live in affordable rental properties while they save for larger home deposits.