Property booming in mining towns
By
Adam Smith
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22/11/2011 3:00:00 AM
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Mining areas have proven the big winners of the Queensland property market, dominating the state's growth suburbs.
New research from PRDnationwide has shown that 18 of Queensland's top 20 suburbs for sales volumes are in mining regions. Gracemere emerged as the state's top suburb for sales activity in the six months to June, recording a 63% increase in sales compared to the same period last year.
Sout East Queensland, meanwhile, continued to take a hammering. PRDnationwide research director Aaron Maskrey said 17 of the bottom 20 suburbs for the year were in the state's South East.
"Despite interest rates remaining on hold since November 2010, it appears that confidence was sapped in the South East Queensland property market, as the majority of the top 20 suburbs to have experienced the largest decline in activity are located within this region," Maskrey said.
The Gap saw the largest decline in house sales, plummeting 57% over the six months to June. Buderim and Forest Lake also experienced massive sales declines, falling 27% and 28%, respectively.
Decreased demand for property purchases, however, have put pressure on the region's rental market. Maskrey said this could woo investors back to the market.
"This could see greater investor activity as yields increase and become more attractive," he said.
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