Posted September 09, 2018 07:24:40 Low-priced homes in Queensland are now almost completely affordable.
Photo: Andrew Meares The average house price in Queensland has dropped by more than 50 per cent in the past five years, according to a new report from Lowes.
The average price of a property in the state has dropped from $3.5 million in 2016 to just $2.4 million in 2018.
“Low prices have been the most significant factor impacting the affordability of home ownership,” said Mark Richardson, vice president of sales at Lowes, which is based in Queensland.
“We have seen a significant decline in the supply of affordable properties across Queensland, particularly in regional areas and suburbs.”
He said many of the factors behind the low prices in Queensland had come about through deregulation, with the sale of large and small businesses to make way for higher profit margins.
In particular, there has been a reduction in capital investment, he said.
The Lowes report showed the average house in Queensland is now just $3,746, compared to $5,821 in 2016.
“In 2016, there were about 1.4 people per 100,000 households in Queensland,” Mr Richardson said.
“That means you’re looking at a significant reduction in the number of households with the average income and number of houses being bought.”
A recent study by the University of New South Wales found that in 2016, Queensland households spent an average of $1,721 on household items.
That is down from $2,054 in 2016 and $3 and $4, respectively, in 2016-17.
Lowes said that the changes were driven by deregulation, as businesses have been able to sell their assets and create new, smaller business models.
Mr Richardson also said the lower prices have helped lower the cost of owning a home.
“For a lot of people, a house is the key to their lifestyle, it’s the first step to owning a property,” he said “People are saving and saving for retirement and to get out of debt and have more stability and stability at home.”