Logan’s unit market recorded the equal-highest percentage of growth (19.56%) in a non-regional market last quarter, according to a report Real Estate Institute Queensland (REIQ) released this month.
Suburbs including Woodridge (34 unit sales), Springwood (22 unit sales) and Beenleigh (21 unit sales) recorded the highest volume of sales in the quarter.
Suburbs like Park Ridge ($981,000), Meadowbrook ($627,000) and Springwood ($612,250) recorded the highest median sales prices for units in Logan.
REIQ’s CEO Antonia Mercorella said a lack of housing supply had put pressure on the market and had made it significantly harder for first-home buyers.
“Across every corner of the state, prices are climbing in a concerning but classic supply story – when demand outstrips new housing delivery, prices inevitably move higher,” she said.
Local eResidential agent Robby Christanto, who is currently selling a number of houses and units in east Logan suburbs, said first-home buyers and downsizers were buying units at a higher rate than other buyers.
“House prices have been rising rapidly since October, so most buyers just want to get into the property market,” he said.
But unit prices are only marginally lower than house prices; they too have risen with house prices, Mr Christanto said, and they’re not necessarily an ideal investment, particularly when considering costs like strata fees.
“When the price of entry-level houses is going up, the units will follow,” he said. “But now that house prices have become so expensive, units do start to look more attractive.”
“It’s not really an ideal situation, but if you are struggling to enter the property market, I think it is better to buy a unit than wait for prices to stabilise to buy a house.
“If you can buy a house, obviously, the house is better in terms of long-term investment.”
Logan’s median house price rose by 3.86% over the quarter to $860,000, just below the state median house price of $895,000. In the past year, the average house price in Logan has increased by 11.56%.
Logan experienced a higher rate of growth in its median house prices in this quarter than neighbouring LGAs, including Brisbane, Redland, Moreton Bay and Ipswich.
Suburbs which recorded the highest median sale price numbers for the quarter included New Beith ($1,412,500), Mundoolan ($1,220,000) and Underwood ($1,210,000).
The greatest changes in median house prices this quarter were recorded in Chambers Flat (77.22%), Underwood (20.28%) and Tanah Merah (19.90%).
Mr Christanto said this level of increase was not typically across all Logan suburbs and, in his experience, quarterly increases were most commonly in the 5% to 10% range.
While state and federal levels of government scramble to deliver more houses, Ms Mercorella said efforts were not moving as quickly as they should be.
“On the supply side, the recent Federal economic roundtable resulted in some red tape reductions – non-essential changes to the National Construction Code will be paused for the next four years, and assessments of 26,000 homes awaiting approval under the EPBC (Environment Protection and Biodiversity Conservation) Act will be fast-tracked,” she said.
“Meanwhile, the state’s $2 billion Residential Activation Fund is helping Councils deliver regional plans with the critical trunk infrastructure needed to unlock housing, and planning scheme improvements are underway to speed up assessment timeframes.
“Levers are being pulled, but we’re still waiting to see this reflected in dwelling completions data.”
Mr Christanto said the property market was “very different” due to the federal government’s First Home Buyer Scheme, which was introduced in October.
“In general, the property prices under the $1 million mark have been impacted, is it get impacted,” he said.
A couple of months ago, in Logan, you could find houses for around $650,000 to $700,000, but now finding a property for around $800,000 is not easy.
“Supply is low, and there are a lot of buyers who want to buy sooner rather than later.”
Mr Christanto said he thought it was unlikely growth rates would slow anytime soon.
“Simply, we don’t have enough supply, but it could change if everyone decides to sell their houses at the same time,” he said.
“I do believe there is still room to grow.”
Image: 7 Mulligan Way, Edens Landing, which Robby Christanto of eResidential is selling.
