According to the latest data from the Real Estate Institute of Queensland, property sales in Queensland are down 28 per cent on last year, and prices are hardly moving. REIQ Chairman Peter McGrath reiterated the claim made by most real estate agents: there is still not enough supply to meet demand.
“While demand has certainly eased from the highs of this time last year, there are simply not enough new dwellings being built to meet the future requirements of our growing population.”
– Peter McGrath
In other words, there’s nothing to worry about, so stick with real estate.
This issue of supply and demand leads us to the Queensland State Government’s recent promise to fast-track the freeing up of enough new land to supply another 150,000 dwellings to south-east Queensland. Obviously it will take time for these developments to be built, but when that begins, what impact will it have on a slowing market? And if demand really is outstripping supply, why are we seeing so few sales now compared with 2007? Perhaps buyers are finally recognising that real estate prices in Queensland – and Australia generally – have gone far enough for now, and that we cannot continue to stretch ourselves without doing some serious damage.