According to Mortgage Choice’s Real Estate Market Facts report, the median house price climbed 3.2 per cent to $533,243 last quarter.

Mortgage Choice Senior corporate affairs manager Kristy Sheppard said the auction market had performed well, especially when compared with the previous quarter.

“Despite reticence from a number of potential buyers, auction clearance rates remained fairly high on average over the June quarter,” Ms Sheppard said,

According to Real Estate Institute of Australia (REIA) president David Airey, Sydney, Melbourne and Brisbane were the major contributors to the nation’s median house price growth.

“Although house price growth slowed over the year, the growth rate is well above the annual average,” Mr Airey said.

“Compared to the same quarter of last year, house prices increased across all Australian capital cities, with growth rates ranging from 8.9 per cent to 26.5 per cent.

“Melbourne recorded the largest increase whilst Perth recorded the smallest growth,” Mr Airey said.

“We can expect a healthy property market for the rest of the year, with an increase in activity in the medium and long term,” he said.

Australia’s premium housing markets have had a wild ride over the past three years, Lawless says.

While values in the million-dollar-plus sector of the residential market are up, sales volumes remain low, he notes.

His analysis of recent movements in the top end of the property market reveals that the most expensive 20 per cent of Australia’s suburbs climbed 19.8 per cent in value in 2007, compared to 13.7 per cent across the broader market.

“As the global financial crisis kicked in and started to bite, with shares and property being sold off to recoup further portfolio losses, values across this same set of premium suburbs fell by 7.4 per cent compared with a 2.5 per cent fall in all home values,” Lawless says.

The premium market turned again in 2009, recording growth of 12.1 per cent over the calendar year, compared to 11.3 per cent across the board.

“For those that can afford the premium price tag premium property markets have generally provided stronger capital gains than the broader marketplace thanks to the inherently tight supply of inner-city, coastal and character properties,” Lawless says.

During 2009, only 137,698 dwellings were commenced to be built. This is a shortfall of 63,527 homes during 2009 alone.

According to a new poll by PRDnationwide, 61 per cent of Australians would access equity in their property to fund another investment, while 23 per cent said they would use equity to complete renovations.

PRDnationwide research director Aaron Maskrey said investors were feeling more wealthy and prosperous since the global financial crisis has passed.

“According to the Australian Bureau of Statistics, the total spend on housing financial commitments compared to the previous year, has increased by 10.1 per cent from $19.2 billion,” Mr Maskrey said.

“Investors have strengthened with $6.4 billion being committed in January, the highest amount of investor commitment since February 2008. Investors now account for 30.4 per cent of the total housing finance commitments,” he said.

“With a current nationwide shortage of homes putting upward pressure on prices once again – the idea of accessing equity is becoming more popular.”

• has not previously been sold (that is, they are purchased from the developer); and
• has not been occupied for more than 12 months.

There are no restrictions on the number of such dwellings in a new development which may be sold to foreign persons, provided that the developer markets the dwellings locally as well as overseas (that is, the dwellings cannot be marketed exclusively overseas).

This category includes dwellings that are part of extensively refurbished buildings where the building’s use has undergone a change from non-residential (for example, office or warehouse) to residential. It does not include established residential real estate that has been refurbished or renovated.

A property purchased under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor’s own use. Once the property has been purchased, it is second-hand real estate and is subject to the restrictions applying to that category.

For more information please visit: www.firb.gov.au

The latest quarterly report by Colliers International highlighted Surfers Paradise, Southport and Labrador as hot spots in 2010, with house and unit prices set to soar between seven and 10 per cent.

Helensvale, Varsity Lakes, Robina and Tugun, located close to major shopping centres and the Pacific Motorway, also made the list of best buys.

Colliers research director Aaron Maskrey said Gold Coast property prices were set to rise rapidly this year, as the beachside region bounced back in the wake of the global financial crisis.

“After the challenging year of 2009… due to the global economic conditions impacting on the Gold Coast property market, hot spots for 2010 will focus on areas where recovery will most likely thrive,” he said.

But property analyst Michael Matusik said the price recovery on the Gold Coast could be limited, as the market had performed as poorly as expected in 2009.

“The Gold Coast market, and in particular Surfers Paradise, has been getting a caning of late,” Mr Matusik said.

“There is no question that the Gold Coast is doing it tougher than the rest, with our data [which is based on cleaned up resales] showing that apartment values fell nine per cent during 2008 and a further four per cent last year,” he said.

“According to the latest Queensland government valuations issued in March, ocean-front land has fallen by 30 per cent on the coast.

“But ocean-front apartment values in Surfers Paradise at least actually rose last year – up by 8.9 per cent.”

Mr Maskrey said the property compass has pointed towards suburbs to be serviced by the Gold Coast’s planned Rapid Transit System, although the first stage of the $949 million project is not due to be completed until 2014.

Median prices in each of the listed hot spots ranged from $320,000 for units to $515,000 for houses at the end of 2009 according to the report.

But Mr Maskrey said the completion of the Rapid Transit System and developments in Surfers Paradise, including the Soul and Hilton towers, could soon see property prices jump up to 10 per cent as local residents are attracted back to the tourist hub.

However, local buyers will face competition from foreign investors.

During December and January, the Juniper Group reportedly secured seven sales amounting to $10 million at its 77-storey, $850 million Soul development in the heart of Surfers Paradise, for Chinese, Indonesian and New Zealand investors.

Overseas buyers injected $407 million into the state’s residential market last financial year, of which 45 per cent was spent on the Gold Coast.

Mr Maskrey said first-home buyers may find better value for money in Helensvale where townhouses and units were priced in the $300′s.

“Helensvale is home to a Westfield Shopping Centre and has easy access to the M1 and a railway station,” he said.

The colourful shopping centre, frequented by the rich and famous, will go to the market this week in an international expressions of interest campaign, leaving off any announcement of a price tag as yet.

The Main Beach precinct, which has 103 tenants including exclusive boutiques, top-notch brands and waterfront restaurants, was expected to attract widespread interest, said Colliers International’s Stewart Gilchrist.

It’s tipped that investors from booming Asian countries like India, China and South Korea will look closely at the property.

Mr Gilchrist said the recent sale of the Sheraton Mirage to Delhi-based Pearls, which picked up the resort for $62.5 million, was a ‘clear sign’ overseas investors were willing to spend in the area.

“We expect to attract huge interest both locally and internationally, mainly from Asia,” said Mr Gilchrist.

“There is significant capital from both local and global institutions now looking for placement, and with a lack of quality stock available nationally, we are confident Marina Mirage will create strong market activity, and be one of the first big retail investment market tests of 2010.”

Marina Mirage’s owner Fenix Real Estate (formerly Ticor Developments) splashed out $40 million on the property in 2005.

The group then spent more than that improving its facilities — the first makeover since failed tycoon Christopher Skase opened the centre in 1988.

Mr Skase built the precinct to cater for guests staying at the Sheraton Mirage.

Fenix bought the precinct from a trust linked to MFS Diversified (now GEO Property Group).

Mr Gilchrist said the fully leased net income represented about $8 million.

The 1.87km precinct, home to the regular Farmers Markets, has 720 carparks and its tenants include Hermes, Max & Co., Charlie Brown and Mimco.

Foodies enjoy the choices offered by Fellini, Glass Restaurant & Bar, Cafe Marina, Omeros Brothers and Max Brenner’s, among others.

Mr Gilchrist said the Pearls purchase, along with the expansion of the Marina Mirage boating precinct, made the area more attractive.

Pearls plans to take Sheraton Mirage back to its former glory, much like Fenix did with Marina Mirage.

“There is no other spot like it and a lot of money is being spent in the area,” said Mr Gilchrist.

Jones Lang LaSalle’s Simon Rooney and Jacob Swan are marketing the property with Mr Gilchrist.

Even with the turbulent market of the past eighteen months, new valuations are expected to push the average land value in some seaside suburbs, including Mermaid Beach and Surfers Paradise over the $1 million mark. Suburbs like Robina and Coomera can also be expected to show strong growth.

Utilized to calculate Council Rates, rate payers will likely see a rise of their annual charges with the new valuations expected to start from June 30 2010.

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Private developers have proposed a $63 million sports and entertainment centre directly opposite Carrara Stadium.

Brisbane-based Bramley Properties has proposed a complex of almost 35,000sqm on a 21ha site which will comprise a Southport Sharks-style sports club, shops, restaurants, offices and a Ferry Road-style boutique food and produce market.

The proposal designed by the same architects who did the Southpork Sharks club complex will be lodged with the Gold Coast City Council today, and if approved could be built by 2011.

While the obvious contender as an anchor tenant is the new GC17 AFL club, planner Michael Nash said the developers were talking to several possible sports bodies.

The project yesterday received the stamp of approval from Mayor Ron Clarke, who believed it could also add support to the Coast’s 2018 Commonwealth Games bid.

“This is exciting news for the Gold Coast and illustrates perfectly the importance to a City such as ours, of an AFL licence,” said Cr Clarke.

“Not only has the granting of this (AFL) license resulted in the $135million investment in a new stadium at Carrara by all levels of government federal, state and local it has, as a flow-on effect, provided the impetus for a government-backed bid for the 2018 Commonwealth Games (which could generate even more infrastructure for the City).

Mr Nash said the proposed centre would give a `heart, a core and a seven-day-a-week operation’, to the Carrara sports precinct.

After an uncertain year, the latest Real Estate Institute of Queensland (REIQ) median sales data shows a return to form for the State’s property market.

“We are cautiously optimistic that the worst is behind us. These really are solid results in what have been very weak economic conditions,” REIQ managing director Dan Molloy said.

The REIQ June quarter median house prices show sales volumes up significantly in many areas.

Compared to the March quarter, preliminary sales numbers are up about 28 per cent in Brisbane; about 17 per cent on the Gold and Sunshine coasts; 14.5 per cent in Rockhampton; 20 per cent in Townville; and about 18 per cent in Cairns.

Bundaberg was the top performer of any Queensland major centre over the June quarter with a very healthy 6.8 per cent median house price increase to $283,000. Logan also performed extremely well over the year to post a 9.7 per cent median price increase to $340,000.

“Bundaberg and Logan has both benefited from having a variety of stock available – from affordable homes for first home buyers to mid-range properties attractive to up-graders,” Mr Molloy said.

While first home buyers have remained active over the quarter, there has been increased demand from up-graders and investors who are equally keen to take advantage of the current market conditions.

“The low interest rate environment, stable prices and rising consumer confidence have certainly spurred market activity,” Mr Molloy said.

“And while median prices have risen in many areas over the June quarter, prices have either regained any ground lost over the past year or found their new level.”

First home buyers represented about 25 per cent of the Queensland property market in June, up dramatically from just 14 per cent a year ago. First home buyers are likely to return to their historical average of about 20 per cent once interest rates move from their current low level.

Strong underlying demand from an increasing population and comparatively affordable property prices – especially in regional areas – are likely to continue to underpin the State’s property market over the year ahead.

REIQ figures show about 78 per cent of house sales across Queensland were for properties under $500,000 in the June quarter, down from 81 per cent the previous quarter.