Fashionable Paddington with its quintessential Queenslanders leading Brisbane property market recovery: REIQ

Brisbane metropolitan house prices rose 1.2% over the March quarter to a median of $505,000, with the fashionable inner-city suburb of Paddington among the strongest performers, according to the latest figures compiled by the Real Estate Institute of Queensland (REIQ).

Of the 132 suburbs that make up the Brisbane City LGA, the REIQ provides quarterly data on only 66 of them, with many medians statistically not reliable due to the varying quality of stock sold.

Among the reliable data, seven suburbs recorded house prices increases of 5% or greater over the quarter, led by Paddington, where the median house price increased by 8.1% to a median of $743,000.

House prices increased 8.3% in Wakerley ($622,500), 7.4% in Sunnybank ($503,500), 7.1% in Wynnum ($450,000), 5.8% in Kedron ($507,500) and 5.3% in Morningside ($600,000).

For the 12 months to March 2012, Brisbane house prices remain down 4.7% from a March 2011 median of $535,000.

Over the past 12 months just 23 suburbs have recorded house price increases, including Auchenflower, where prices are up 6% to $819,000, and Hawthorn, where prices are up 7% to $826,250.

Some 20 suburbs have recorded double-digit house price falls, with the worst-performing suburb being Chelmer, seven kilometres west of Brisbane, where house prices are down 32% from a median of $881,000 to $603,000.

The REIQ data also shows that the number of homes selling during the quarter is 6% higher than at the same time last year.

In the greater Brisbane area (the statistical division that includes Ipswich City, Logan City and Moreton Bay) the median house price was unchanged at $425,000.

REIQ chief Anton Kardash says the quarterly results are the first sign the Brisbane market is starting to recover.

‘‘Three months ago when we analysed the December quarter data it seemed to indicate we had reached the bottom of the market because prices were stabilising,’’ Kardash says. 

‘‘We predicted at the time that the March quarter data would be even more positive and it certainly is that. Property prices have grown in most areas, and some regions have also experienced substantial increases in sales activity, which is a hugely welcome turnaround. 

‘‘And while the March quarter figures contain plenty of good news, perhaps the best piece of news is some very healthy results in our tourism centres, which have struggled more than most over the past two years,” he says.

Full list of localities on page 2.