House prices in some Peninsula suburbs soar

PRICE HIKE: Median house prices in some Peninsula suburbs have risen dramatically.

THE median house price in Scarborough, Newport and Deception Bay has dramatically increased over the December quarter, according to the Real Estate Institute of Queensland.

The three suburbs have each climbed more than 10 per cent, with Scarborough’s prices up by 15.9 per cent from $430,00 to $498,500.

REIQ Pamela Bennett said the interesting results were due to the reduction in first home buyers.

``During the economic uncertainty of late 2008 and 2009, we saw median house prices drop as first-timers took up a greater share of the affordable end of the market - due to financial incentives and low interest rates - and therefore pushed medians lower,’’ she said.

``Now the natural correction has taken place as first home buyers return to a more usual percentage of the market.

``It is interesting to note that while many areas this quarter have experienced a surge in median price, the results over the year are far more modest with increases, or even decreases, of a only few per cent.’’

Kippa-Ring, Margate, Rothwell and and Woody Point’s median house prices decreased over the December quarter.

Woody Point homes went down 10.3 per cent from a median price of $370,000 to $356,000, similar to the area’s price in 2008.

REIQ managing director said a recent report had found the number of preliminary sales under $500,000 had dropped by 22 per cent during the December quarter.

``The reduction of the First Home Owners Boost on 1 October last year and three consecutive interest rates during the December quarter ensured first-timers exited the market fairly rapidly over the period,’’ he said.

``At their peak last year, first home buyers represented about 30 per cent of the market in Queensland, however, this number has already dropped to 17 per cent and may even reduce further after four interest rate increases in just five months.’’

Source: whereilive