Dwelling value growth across Qld remains lackluster with falls over the quarter.
Over the third quarter of 2018, Brisbane dwelling values increased by 0.1% while across regional Qld values fell by -0.6%.
Brisbane dwelling values increased by 0.8% over the 12 months to September 2018 while in regional Qld values increased by a slower 0.2%.
Annual value growth in each of Brisbane and regional Qld has slowed from a year ago and while values continued to rise, it was at a very slow pace.
The most affordable properties in Qld have recorded value falls over the past year while more expensive stock is seeing values rise
Dwelling values across the 25% of most affordable housing stock in Qld has fallen by -1.3% over the past year compared to a 0.5% increase across the middle 50% of housing stock and a 1.3% increase across the most expensive 25% of housing stock.
In Brisbane, values have fallen by -0.6% over the past year across the most affordable 25% of properties in the city, they have increased by 1.1% across the middle 50% of the market and risen 0.9% across the most expensive 25%.
Regional Qld dwelling values have fallen by -1.5% across the most affordable 25% of properties over the past year, are -0.4% lower across the middle 50% of properties and have increased by 1.2% across the most expensive 25% of properties.
Transaction volumes are substantially lower over the past year
There were 24,331 dwelling sales across Qld over the three months to September 2018 which was -3.9% fewer than the same period in 2017.
The number of settled sales in Brisbane was.
-5.3% lower over the past three months compared to the same period in 2017 with 11,117 sales.
There were 13,214 house and unit sales in regional Qld over the three months to September 2018 which was -2.6% lower than the number over the third quarter of 2017.
Rental growth has accelerated across the state over the past year but slowed over recent months
In Brisbane, rental rates recorded no change over the three months to September 2018 while rents fell by -0.5% over the same period in regional Qld.
Rental growth in Brisbane has accelerated over the past year from a -0.1% annual decline a year ago to a 1.0% increase over the past year, the largest annual increase since March 2015.
In regional Qld, rents have increased by 2.2% over the past year, which is slower than the 6.2% annual increase recorded a year ago.
Rental yields have increased slightly over the past year in Brisbane and eased in regional Qld
Gross rental yields in Brisbane have increased from 4.35% in September 2017 to 4.40% currently.
In regional Qld, gross rental yields are currently recorded at 5.30%, down from 5.34% a year ago.
Growth in state final demand in Qld has slowed over the past quarter
State final demand measures the total value of goods and services that are sold in a state to buyers who wish to either consume them or retain them in the form of capital assets. It excludes sales made to buyers who use them as inputs to a production activity, export sales and sales that lead to accumulation of inventories. Given it excludes exports and inventories it isn’t directly comparable to GDP.
Over the June 2018 quarter, state final demand in Qld has increased by 0.1% which was the weakest change over a quarter since it fell -0.5% in December 2015.
State final demand increased by 3.7% over the past year down from 3.8% over the March 2018 quarter
Qld’s job creation is slowing and the unemployment rate remains stubbornly high
The trend unemployment rate in Qld was reported at 6.1% in September 2018, slightly higher than the 6.0% recorded a year earlier.
Over the past 12 months, Qld has created 39,107 jobs.
Based on 39,107 jobs created over the past year, total employment has increased by 1.6% which has accounted for 13.6% of all jobs created nationally.
Qld has led the nation in net interstate migration over the past year
The population of Qld increased by 83,333 persons over the 12 months to March 2018 with Qld accounting for 21.9% of the nation’s population growth over the year and its largest increase since June 2013.
The 83,333 person increase in population was split between: natural increase of 30,006 persons, net overseas migration of 29,323 persons and net interstate migration of 24,004 persons.
Over the year, natural increase was lower than over the previous year, net overseas migration was higher than the previous quarter but lower than a year ago while net interstate migration has increased for 13 consecutive quarters and is at its highest level since March 2007.
Dwelling approvals are below their recent peaks across Qld
There were 3,656 dwellings approved for construction across the state in August 2018 which was -4.5% fewer over the month and a decline of -16.0% year-on-year.
There were 2,113 houses and 1,543 units approved for construction over the month.
House approvals in August were -4.3% lower over the month and -20.9% lower year-on-year while unit approvals were -4.9% lower over the month and -8.1% lower year-on-year.
The number of dwellings under construction across Qld is falling
At the end of the June 2018 quarter there were 32,922 dwellings under construction in Qld which was the fewest since June 2015.
The 32,922 dwellings under construction was split between: 10,451 new houses, 22,308 new units and 163 non-new dwellings.
The number of new houses under construction was -5.5% lower over the quarter while units under construction were -4.9% lower over the quarter to reach their lowest number since the March 2015 quarter.
The value of housing finance commitments fell slightly in August 2018
In August 2018 there was $4.8 billion worth of housing finance commitments in Qld which was -1.4% lower over the month and -25.4% lower yearon-year.
The $4.8 billion in housing finance commitments was split between: $0.9 billion for owner occupier refinances, $2.6 billion for owner occupier new lending and $1.2 billion to investors.
Each segment of lending recorded a decline over the month and year however, investor lending has seen the steepest annual fall (-54.4%).