Housing and Homelessness Services

Queensland housing market report

June quarter 2011

Department of Communities fair, cohesive and vibrant communities

INTRODUCTION
The Department of Communities (Housing and Homelessness Services) produces the Queensland Housing Market Report to provide a snapshot of key housing market indicators in Queensland for the relevant quarter. The Queensland Housing Market Report provides a quarterly update on private rental and home ownership markets for the states 15 most populated Local Government Areas (LGAs). Also included in the Report are a series of Housing and Economic Statistics Tables that offer a range of easily referenced tables relating to general economic and Queensland housing market indicators. The Report relies on data provided by government agencies such as the Residential Tenancies Authority, Queensland Treasury, Department of Environment and Resource Management and the Australian Bureau of Statistics.

Disclaimer for release of this information to external parties

The materials presented in this Queensland Housing Market Report are distributed by the Department of Communities as an information source only. The information is provided solely on the basis that readers will be responsible for making their own assessment of the matters discussed herein and are advised to verify all relevant representations, statements and information. While information contained in this document is regarded as unclassified by the Department of Communities, external parties using this information nevertheless agree hereby to abide by the following terms and conditions for its use: This document and its contents are copyright to Queensland Department of Communities. No part of this publication is to be reproduced or transmitted in any form or by any means, electronic or manual, including photocopying, without the written permission of the Department of Communities. Where material from this document is cited elsewhere, the reference should be sourced appropriately; citing the Department of Communities as author, and including the cited date of publication. Information and data contained in this document are not to be cited out of the context in which they are presented, or using terminology other than that used within this document. While all care has been taken in the preparation of information and material in this publication, including the accuracy of data, the Department of Communities gives no warranty that the information is free from errors, is complete, has any particular quality, or is suitable for any particular purpose. The Department of Communities accepts no responsibility for commercial decisions or changes in the personal circumstances of individuals acting on the information contained in this document. External parties who use information contained in this document thereby agree to indemnify the Queensland Government (and its servants and agents) in respect of all liability for loss (including all legal costs) or liability from any claim, suit, action, demand or proceeding brought by any third party in connection with the use of this information.

Contacts
All inquires should be addressed to Private Housing Programs, Department of Communities (Housing and Homelessness Services) on 07 3406 7588.

Contents
June Quarter Highlights Private Rental Market
Rental price update 3 Bedroom detached houses 2 Bedroom flats/units Rent across dwelling types and sizes Residential vacancy rates Rental market size

1 2
2 2 3 4 5 5

Home Ownership
Home purchase prices Detached house prices Flat/unit prices Vacant land prices Housing finance and planned residential construction New loans by dwelling type New loans by buyer type Dwelling approvals

6
6 7 7 8 9 9 9 10

Economic Update
Economic growth Population growth Interest rates Wages & Prices Unemployment

10
10 11 11 12 13

Housing and Economic Statistics Tables

Private rental tables Table 6 - 3 Bedroom detached houses Table 7 - 2 Bedroom flats/units Table 8 - Rent Assistance Rates Home ownership tables Table 9 - Detached house prices Table 10 - Flat/unit prices Table 11 - Vacant land prices Table 12 - Average home loan sizes in Australia Table 13 - Average home loan sizes in Queensland Table 14 - Queensland residential dwelling approvals Economic tables Table 15 - Interest rates Table 16 - Australian Consumer Price Index components Table 17 - Consumer Price Index for Australian capital cities Table 18 - Rates of unemployment

14
14 14 15 15 16 16 16 17 17 17 18 18 18 18 19 19

Explanatory Notes
Rent and Sales Statistics The geographic areas for reporting rent and sales data are based on the Australian Standard Geographical Classification (ASGC) of the Australian Bureau of Statistics (ABS). Rent statistics in this Report are sourced from information provided on the bond lodgement form lodged with the Residential Tenancies Authority (RTA). Sales statistics in this Report are sourced from information provided on the Property information (transfer) form that is lodged with Queensland Valuation and Sales (QVAS) maintained by the Department of Environment and Resource Management (DERM). Unless otherwise specified, the rent and sales statistics in this Report are derived from total records available for the relevant quarter. No exclusions or limits have been applied. Median rent and sales values are used in this Report. The median is the value that divides a set of ordered data equally into a bottom half and a top half (i.e. the middle value or 50th percentile). The median value is not significantly affected by unusually high or low values (outliers) and therefore provides a better measure of central tendency. Local Government Areas (LGAs) with less than 10 rental bonds or sales records are deemed to have too small a sample size for the reporting of median rent and sales statistics. Total bonds held refers to those live bonds held at the last date of the quarter by the RTA. The total number of bonds held by the RTA does not equal the total number of rental properties due to a proportion of rental properties remaining vacant at any given time and the occurrence of cases where bonds are not required by the landlord (i.e. informal lettings). The sales data for the most recent quarter is preliminary and is reported two months after the end of quarter by which time the number of sales processed through QVAS represent approximately 70% of the total sales for that quarter. This arises because of the lapse in time between the contract date and when the sale is notified. The proportion of total sales available at the time of reporting is considered sufficient for the analysis of sales data in this Report. Preliminary sales data reported for previous quarters is not revised and as such comparison of data between quarters provides a guide only. Sales data reported for each quarter is based on the contract date recorded rather than the settlement date,
Housing and Homelessness Services www.housing.qld.gov.au

which can occur up to three months later. Analysis based on the contract date provides a more accurate reflection of market activity in the specified quarter. It should be noted in interpreting quarterly changes in sales values that the sample of properties transacted in one quarter may be quite different compositionally to the sample of properties transacted in previous quarters.

Housing Finance Data The method for estimating the number of new loans taken out in Queensland by investors was sourced from BIS Shrapnel. This involves taking the total value of loans in Queensland for the purchase of residential property for rent or resale, and dividing this by the average purchase price of non-first home buyers (investors are known to spend more than the average first home buyer). Both values are sourced from the ABS. This estimate only covers loans taken out in Queensland for property investment and may include loans taken out in Queensland for property outside of the state (properties interstate or overseas). This estimate does not include investor purchases in Queensland where loans are sourced outside of the state (i.e. interstate or overseas buyers).

Data Series Type Original series data from the ABS is used within the Report except where Seasonally Adjusted series data is deemed more appropriate. Seasonal adjustment is the process of estimating and then removing from a time series influences that are systematic and calendar related. Seasonal effects can conceal both the true underlying movement in the series, as well as certain non-seasonal characteristics. Economic performance is depicted using trend series data for Chain Volume Measure. Trend data is defined as the long term movement in a time series without calendar related and irregular effects, and is a reflection of the underlying level. It is the result of influences such as population growth, price inflation and general economic changes. All data provided in the Report is the most recent available at the time of extraction for this reporting period, including revised estimates of previous data released by the ABS. Data is reported in terms of both absolute change and percentage change. Absolute change represents the numerical change in the value reported (i.e. an increase of $140) while percentage change represents the absolute change in the value reported as a percentage of the base value (i.e. an increase of 40%).

Queensland housing market report - June Quarter 2011

June 2011 Quarter Highlights

Private rental market
Rents for Queensland overall have had little to no change to the June Quarter 2011. - 0% change in the median weekly rent for 3 bedroom detached houses ($340). - 3.1% decrease in the median weekly rent for 2 bedroom flats/units (from $320 to $310).

June 2011 Quarter Highlights

Of Queenslands 15 most populated LGAs, Gladstone once again recorded the largest absolute increase in median rent for 3 bedroom houses ($20) and Rockhampton and Redland also saw an increase of $10 over this quarter. Toowoomba and Sunshine Coast recorded a decline in median rent of $5. Nine LGAs saw no change to rents for detached houses over the quarter, including the LGA of Brisbane. Gladstone and Redland recorded the largest absolute increase in median rent for 2 bedroom flats/units (both $25). Townsville recorded the largest absolute decline in median rent for this dwelling type ($20). The overall Queensland rental vacancy rate rose to 3.8% in the June Quarter 2011 compared to 3.6% for the previous quarter. The rental vacancy rate for Inner Brisbane decreased further to 2.2% for the June 2011 quarter, down from 2.6% in the March quarter. A notable shift in vacancy rates occurred once again in the Brisbane Surrounds market with the vacancy rate of 4.3%, an increase from 3.3% in the March Quarter 2011. Total rental bonds in Queensland for detached houses, flats/units and townhouses increased by 1.4% over the June Quarter 2011. The number of new bonds lodged in the June Quarter 2011 decreased by 11.7% from the previous quarter.

Home ownership
Queenslands property purchase prices decreased over the June Quarter 2011. - Median house prices dropped by 3.0% ($407,500 compared to $420,000 for the previous quarter). - Median flat/unit prices had no change from the previous quarter remaining at $350,000. Of Queenslands 15 most populated LGAs, ten recorded a decrease in median house price to the June Quarter 2011. The largest decline in median house price was on the Gold Coast at $28,250, with Rockhampton and Fraser Coast both recording a $20,000 shift. Gladstone and Toowoomba recorded the largest absolute increase in median house price ($23,500 and $6,750). The stand out increase in flat/unit prices in June Quarter 2011 was a $100,000 increase in the median price for Gladstone ($442,500 up from $342,500 in March Quarter 2011). Rockhampton, Toowoomba and Cairns had the strongest declines for median flat/unit prices at $32,000, $28,000 and $22,000 respectively. The number of new loans for dwelling purchase in Queensland recovered slightly after the fall in the March quarter, increasing by 10.8% over the June Quarter 2011. The investor sector of the market also showed signs of recovery with an increase in activity with the number of new loans increasing by 17.6% in the June Quarter 2011. Queensland seasonally adjusted residential dwelling approvals for new houses in the June Quarter 2011 numbered 4111, up from 3,981 in the March Quarter 2011. There were 2,660 residential dwelling approvals for flats/units/townhouses in the June Quarter 2011 which was an increase on the March Quarter 2011 approvals of 2,097.

Economic update
Queenslands economic growth figures declined by 1.4% over the March Quarter 2011. The Reserve Bank of Australia (RBA) cash interest rate and bank home loan rates remained unchanged during the June Quarter 2011 at 4.75% and 7.80% respectively. Non-bank lenders decreased their home loan rates to 7.20% from 7.30%. The Queensland seasonally adjusted unemployment rate trended downwards slightly from the previous quarter to 5.3% in June 2011.

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Private Rental Market

Private Rental Market

Rental Price Update
3 Bedroom detached houses
Chart 1 shows that the median rent in Queensland for a 3 bedroom detached house was $340 per week as at June quarter 2011. Also shown in Chart 1 are median weekly rents for Queenslands 15 most populated Local Government Areas (LGAs), listed in descending order of population. The most expensive of these LGAs to rent a 3 bedroom house were Gold Coast ($400 per week), Brisbane and Mackay ($390), Gladstone ($380), Redland ($370) and Sunshine Coast ($365). These medians were above that recorded for Queensland over the quarter. The median recorded for Townsville for this dwelling type was once again on par with that of Queensland. The most affordable of the LGAs shown for renting a 3 bedroom house, with little or no change from the June quarter, were Fraser Coast ($255 per week), Bundaberg ($260), Toowoomba ($265) and Ipswich ($285). Table 1 outlines the percentage change in median weekly rents for 3 bedroom detached houses, for Queensland and its 15 most populated LGAs, over the quarter and over the year to June quarter 2011.

After remaining constant at $330 per week from the December Quarter 2009 to December Quarter 2010, the median rent for 3 bedroom houses in Queensland increased by $10 to $340 over the March Quarter 2011 and has remained at that rate over the June 2011 quarter. Of the LGAs shown, Gladstone recorded the largest absolute increase in median rent over the quarter ($20), with Redland and Rockhampton both increasing by $10. The Sunshine Coast and Toowoomba were the only two LGAs in this group to record a decline in median rent over the quarter ($5). The median weekly rent for nine of the 15 LGAs remained unchanged over the quarter, including Brisbane ($390). Of the LGAs shown, Gladstone recorded the highest absolute growth in median rent for a 3 bedroom house over the year ($80). The Sunshine Coast was the only LGA to show a decline in the median rent for this dwelling type over the year ($5). The median rent for 3 bedroom houses in four of the top 15 LGAs, Gold Coast, Moreton Bay, Logan and Bundaberg, remained unchanged over the year to June Quarter 2011.

Chart 1

Median weekly rents for 3 bedroom detached houses

(as at June quarter 2011) Queensland Brisbane (C)
$340 $390 $400 $320 $365 $320 $340 $310 $285 $265 $370 $390 $310 $255 $260 $380
$0 $50 $100 $150 $200 $250 $300 $350 $400 $450

Table 1 - 3 BEDROOM DETACHED HOUSES

Percentage change in median weekly rents

15 LARGEST LGAs in descending order of population Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C) Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R) Queensland Jun Qtr 2010 Median $rent $375 $400 $320 $370 $320 $330 $300 $275 $260 $360 $380 $290 $250 $260 $300 $330 Mar Qtr 2011 Median $rent $390 $400 $320 $370 $320 $340 $310 $285 $270 $360 $385 $300 $255 $260 $360 $340 Median $rent $390 $400 $320 $365 $320 $340 $310 $285 $265 $370 $390 $310 $255 $260 $380 $340 June Quarter 2011 % % Change Change over year over qtr 4.0% 0.0% 0.0% -1.4% 0.0% 3.0% 3.3% 3.6% 1.9% 2.8% 2.6% 6.9% 2.0% 0.0% 26.7% 3.0% 0.0% 0.0% 0.0% -1.4% 0.0% 0.0% 0.0% 0.0% -1.9% 2.8% 1.3% 3.3% 0.0% 0.0% 5.6% 0.0% New bonds 2,687 1,005 1,138 1,010 910 648 489 680 629 326 321 393 342 288 227 13,192

Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C)
LGAs

Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R)

Median rent rate ($) weekly

Source: Residential Tenancies Authority

Source: Residential Tenancies Authority

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Private Rental Market

2 Bedroom Flats/Units
Chart 2 shows that the median rent in Queensland for a 2 bedroom flat/unit was $310 per week as at June quarter 2011, $30 less than median rent recorded for a 3 bedroom detached house in Queensland over the same quarter. Also shown in Chart 2 are median weekly rents for Queenslands 15 most populated LGAs, listed in descending order of population. Brisbane and Gold Coast remain the most expensive locations to rent a 2 bedroom flat/unit, with medians significantly above that recorded for Queensland over the quarter ($380 and $350 per week respectively). The most affordable of the LGAs shown for renting a 2 bedroom flat/unit were Bundaberg ($205 per week), Fraser Coast and Toowoomba ($210). In comparing the rental market for 2 bedroom flat/units with that of 3 bedroom houses, there was a narrow price differential between the median weekly rent for these dwelling types in Brisbane. Comparatively, 2 bedroom flat/ units were positioned as a considerably more affordable rental alternative in the LGAs of Mackay, Gladstone, Logan, Sunshine Coast and Townsville.

Table 2 includes the percentage change in median rents for 2 bedroom flats/units, for Queensland and its 15 most populated LGAs, over the quarter and over the year to June quarter 2011. The median rent for a 2 bedroom flat/unit in Queensland decreased by $10 to $310 per week over the June Quarter 2011. Of the LGAs shown, Redland and Gladstone recorded the largest absolute increase in median rent over the quarter (both $25). Townsville, Moreton Bay and Sunshine Coast recorded declines in median rent over the quarter (down $20, $3 and $5 respectively). Compared to a year ago, the median rent for a 2 bedroom flat/unit has increased by $10 at the state level in the June Quarter 2011. Gladstone ($70), Rockhampton, Mackay and Brisbane (all $20) recorded the largest absolute increases in median rent over the year for this dwelling type, consistent with the strong growth noted in these areas for 3 bedroom houses over the same period. The Sunshine Coast and Townsville were the only LGAs shown to experience a decline in the median rent for this dwelling type over the year (both -$5), while Ipswich, Cairns and Bundaberg recorded unchanged median rents over the year to June Quarter 2011. For the years to March and June quarters 2011, Bundaberg was the only LGA shown to record no growth across both dwelling types of 3 bedroom houses and 2 bedroom flats/ units over the year. The Sunshine Coast was the only LGA to record a decline in overall median rents over the year to June quarter 2011 (-1.4% for 3 bedroom houses and -1.7% for 2 bedroom flats/units).
Table 2 - 2 BEDROOM FLATS/UNITS

Chart 2

Median weekly rents for 2 bedroom flats/units

(as at June quarter 2011) Queensland Brisbane (C)
$310 $380 $350 $265 $295 $250 $270 $250 $240 $210 $323 $300 $250 $210 $205 $300 $0 $50 $100 $150 $200 $250 $300 $350 $400

Percentage change in median weekly rents

Jun Qtr 2010 Median $rent $360 $340 $260 $300 $240 $275 $250 $240 $200 $310 $280 $230 $200 $205 $230 $300 Mar Qtr 2011 Median $rent $375 $350 $268 $300 $250 $290 $250 $240 $210 $298 $300 $235 $200 $200 $275 $320 Median $rent $380 $350 $265 $295 $250 $270 $250 $240 $210 $323 $300 $250 $210 $205 $300 $310 June quarter 2011 % % Change Change over year over qtr 5.6% 2.9% 1.9% -1.7% 4.2% -1.8% 0.0% 0.0% 5.0% 4.0% 7.1% 8.7% 5.0% 0.0% 30.4% 3.3% 1.3% 0.0% -0.9% -1.7% 0.0% -6.9% 0.0% 0.0% 0.0% 8.4% 0.0% 6.4% 5.0% 2.5% 9.1% -3.1% New bonds 3,780 2,487 411 886 215 710 950 141 332 56 243 215 207 105 159 11,843

Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C)
LGAs

15 LARGEST LGAs in descending order of population

Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C) Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R) Queensland

Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R)

Median rent rate ($) weekly

Source: Residential Tenancies Authority

Source: Residential Tenancies Authority

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Private Rental Market

Rent across dwelling types and sizes

Chart 3 illustrates Queensland median weekly rents by dwelling type and number of bedrooms for the June quarter 2011. Table 3 shows this breakdown for Queenslands 15 most populated LGAs, listed in descending order of population. In most instances, median rents for all detached houses shown are lower than for flats/units and townhouses with corresponding number of bedrooms. The reason for this is that flats/units and townhouses are predominantly located in markets with higher property values, such as inner city locations and coastal regions. The highest median rents for the June Quarter 2011 in Queensland were for four bedroom townhouses ($440 per week), which is $40 and $55 higher than for both four bedroom flats/units and four bedroom houses respectively in Queensland. The most notable difference in median weekly rents for dwellings categorised by the number of bedrooms was the increase from one bedroom houses to two bedroom houses, and the increase from one bedroom townhouses to two bedroom townhouses ($80 and $113 respectively). Rental prices increase steadily with the number of bedrooms for the flat/unit dwelling type category. The most notable disparity in median rents across dwelling types occurs for one bedroom dwellings, where the median rent for a one bedroom flat/unit was higher than that for one bedroom houses and townhouses by a difference of $60 and $63 respectively.
Table 3 - MEDIAN WEEKLY RENTS ACROSS DWELLING TYPE AND NUMBER OF BEDROOMS
Flat/unit 1 bed $280 $290 $200 $240 $215 $230 $193 $185 $165 $207 $210 $163 $134 $180 $220 $260 2 bed $380 $350 $265 $295 $250 $270 $250 $240 $210 $323 $300 $250 $210 $205 $300 $310 3 bed $430 $390 $300 $350 $295 $390 $330 $280 $280 $370 $420 $283 $265 $273 $370 $360 4 bed $438 $450 $315 $525 $370 $410 $250 $319 $368 $298 $415 $360 $270 $320 . $385 1 bed $200 $245 $195 $250 $268 $245 $250 $140 $155 $235 $210 $200 $190 $190 $225 $200 2 bed $350 $348 $265 $300 $270 $290 $266 $255 $220 $228 $325 $250 $225 $225 $300 $280 House 3 bed $390 $400 $320 $365 $320 $340 $310 $285 $265 $370 $390 $310 $255 $260 $380 $340 4 bed $460 $450 $365 $440 $380 $395 $365 $340 $350 $460 $480 $370 $305 $310 $470 $400 1 bed $215 $175 $170 $258 $247 . $185 . $125 $215 $380 . . . . $197 Townhouse 2 bed $360 $320 $280 $310 $268 $285 $230 $265 $245 $330 $360 $290 $253 $235 $300 $310 3 bed $400 $365 $320 $360 $320 $350 $350 $300 $290 $365 $420 $300 $300 $275 $450 $365 4 bed $480 $495 $355 $410 $380 $380 $750 $350 $393 $445 . . $290 . $390 $440
Chart 3

Queensland weekly median rents by number of bedrooms and dwelling type

(June quarter 2011)

$500

Flat/unit
$400 $310 $300 $260 $200 $200 $197

House

Townhouse

$440 $385 $400

$365 $360 $340 $310 $280

$100

$0
1 bedroom 2 bedroom 3 bedroom 4 bedroom

Source: Residential Tenancies Authority

June quarter 2011

15 LARGEST LGAs in descending order of population Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C) Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R) Queensland

Note that median prices have not been provided for LGAs with less than 10 rental bonds, for the given dwelling type and number of bedrooms. Source: Residential Tenancies Authority

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Private Rental Market

Residential vacancy rates

A healthy residential rental market vacancy rate is considered to be around 3.0%, with slight variations at the regional level. Chart 4 illustrates the residential vacancy rates for Inner Brisbane (suburbs wholly or mainly within 5km of Brisbane GPO), Brisbane Remainder, Brisbane Surrounds (the Moreton Bay, Logan, Redland and Ipswich LGAs), Gold Coast and Rest of Queensland (i.e. areas outside of southeast Queensland), over the quarter and over the year to June Quarter 2011. The Queensland vacancy rate has been above the healthy level since the March Quarter 2009 and was recorded at 3.8% for the June quarter 2011, up slightly from the previous quarter (3.6%). The impact of flooding in Brisbane and regional centres throughout the state in December and January contributed to an overall tightening of vacancy rates over the March Quarter 2011 as a result of increased demand from displaced persons seeking short term accommodation and a reduction in rental stock in affected areas. The Inner Brisbane region vacancy rate has dropped further below the March 2011 Quarter down to 2.2%, for the June Quarter 2011. The Remainder of Brisbane Region also saw a reduction in vacancies reducing to 2.6% from 3.1% in March. Brisbane Surrounds and Gold Coast regions both recovered to record vacancy rates similar to June Quarter 2010, while the Rest of Queensland remained unchanged from the March Quarter. All regions outside of Brisbane have recorded vacancy rates above the healthy level for June Quarter 2011. The Gold Coast recorded the highest vacancy rate for the June Quarter 2011 (5.5%).

Chart 5 shows total quarterly rental bonds held in Queensland for detached houses, townhouses and flats/units over the year to June Quarter 2011. Total rental bonds for Queensland numbered 433,937 for the June Quarter 2011. This represents an increase of 1.4% or 6,079 bonds over the quarter. Over the year to the June Quarter 2011 total rental bonds increased by 6.4% or 26,553 bonds. Queenslands rental bonds increased between 0.7% and 0.9% per quarter over the four quarters to June 2010. Queenslands population growth increased by between 0.4% and 1.0% over the same period. The number of new bonds lodged within each quarter is also shown in Chart 5 as an indicator of market churn. This is influenced by a number of factors, including new dwellings constructed in an area, shifts between owner occupied versus renter dwellings and length of tenancy. On average, over the last year new bonds have accounted for 13% of total bonds within each quarter. New bonds for the June Quarter 2011 numbered 53,681, accounting for 12.1% of total bonds for the quarter. This number of new bonds is down 7,097 on March Quarter 2011 and up 2,113 on the June Quarter 2010.

Rental market size

Chart 4
6.0%

(June quarter 2010, March and June quarters 2011)

5.5% 5.5% 4.7% 4.2% 4.0% 3.3% 3.1% 2.6% 3.6%

Rental vacancy rates

Chart 5

Queensland rental bonds: houses, flats/units and townhouses

(June quarter 2010 - June quarter 2011)
443,937

480,000

5.0%

4.9% 4.2%

5.1% 4.3% 4.0%

Number of rental bonds

440,000
3.8%

417,360

424,514

429,679

437,778

4.0%

400,000

3.0%

2.8%

51,568

57,363

53,259

60,778

53,681

2.6% 2.2%

360,000

2.0%

320,000 365,816 280,000 367,193

1.0%

376,442

377,080

390,256

0.0%

Jun. qtr 2010 Inner Brisbane Brisbane Surrounds Rest of Queensland

Mar. qtr 2011 Remainder of Brisbane Gold Coast Queensland

Jun. qtr 2011 Healthy vacancy rate (around 3.0%)

240,000 Jun. qtr 2010 Sep. qtr 2010 Existing bonds Dec. qtr 2010 Mar. qtr 2011 Jun. qtr 2011 New bonds for the quarter

Source: Office of Economic and Statistical Research, Queensland Treasury

Source: Residential Tenancies Authority

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Home Ownership

HOME OWNERSHIP
Home purchase prices
Detached house prices
Chart 6 shows the median detached house price in Queensland was $407,500 as at June Quarter 2011. Also shown in Chart 6 are median house prices for Queenslands 15 most populated LGAs, listed in descending order of population. Brisbane and the Gold Coast recorded the highest median house prices, at $514,000 and $488,000 respectively. Sunshine Coast, Redland, Gladstone and Mackay were also above the Queensland median, at $460,000, $445,000, $444,500 and $418,000 respectively. Note that these four LGAs also recorded median rents above the Queensland median for 3 bedroom detached houses. Those in the second tier of LGAs by median detached house price were all below the Queensland median, including Moreton Bay ($390,000), Townsville ($379,400), and Logan ($370,000). Over the quarter, Fraser Coast was the least expensive of the states 15 most populated LGAs to purchase a house ($290,000), followed closely by Bundaberg ($293,000). Other more affordable LGAs as at the March Quarter 2011 were Ipswich ($314,500), Toowoomba ($311,700) and Rockhampton ($320,000).

Table 4 includes the percentage change in median detached house prices for Queensland and its 15 most populated LGAs, over the quarter and over the year to June Quarter 2011. Queenslands median house price declined 3.0% ($12,500) over the quarter to $407,500 and declined 5.2% ($22,500) over the year to June 2011. Over the quarter, ten of the states 15 most populated LGAs recorded a decline in median detached house prices, with the most significant declines occurring in Gold Coast, Rockhampton and Fraser Coast ($28,250, $20,000 and $20,000 or 5.6%, 5.9% and 6.5% respectively). Of those LGAs recording an increase in the median detached house prices over the quarter, the most notable increase was in Gladstone (up $23,500 or 5.6%), followed by Toowoomba (up $6,700 or 2.2%). Over the year, 11 of the 15 LGAs shown recorded a decline in median house prices with the following recording the most significant declines; Redland (down $45,000 or 9.2%), Gold Coast (down $39,200 or 7.5%), Brisbane (down $36,000 or 6.5%) and Sunshine Coast (down $33,500 or 6.8%). The three LGAs recording the highest increases in median house prices over the year to June 2011 were Gladstone (up $64,000 or 17.0%) and Bundaberg and Mackay (both up $8,000).

Chart 6

Median detached house price

(as at June quarter 2011)
Queensland Brisbane (C) Gold Coast (C)
$407,499 $514,000 $480,750 $390,000 $460,000 $370,000 $379,375 $355,000 $314,500 $311,750 $445,000 $418,000 $320,000 $290,000 $293,000 $444,500 $0 $200,000 $400,000 $600,000

Table 4 - DETACHED HOUSES

Percentage change in median sales prices

15 LARGEST LGAs in order of population Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C) Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R) Queensland Jun Qtr 2010 Median $sales Mar Qtr 2011 Median $sales Median $sales June Quarter 2011 % Change % Change No. over year over qtr sales -6.5% -7.5% -7.1% -6.8% -5.1% -1.5% -4.1% -6.1% 2.2% -9.2% 2.0% -4.5% -7.9% 2.8% 17.0% -5.2% -2.1% -5.6% -2.5% -2.1% -1.3% 1.2% -4.1% -2.9% 2.2% -1.3% 1.5% -5.9% -6.5% 1.0% 5.6% -3.0% 2,387 898 1,072 735 637 532 346 390 454 428 381 325 274 263 252 10,649

Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C)
LGAs

$550,000 $525,000 $514,000 $520,000 $509,000 $480,750 $420,000 $400,000 $390,000 $493,500 $470,000 $460,000 $390,000 $375,000 $370,000 $385,000 $375,000 $379,375 $370,000 $370,000 $355,000 $335,000 $324,000 $314,500 $305,000 $305,000 $311,750 $490,000 $451,000 $445,000 $410,000 $412,000 $418,000 $335,000 $340,000 $320,000 $315,000 $310,000 $290,000 $285,000 $290,000 $293,000 $380,000 $421,000 $444,500 $430,000 $420,000 $407,499

Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R)

Median house price ($)

Note that the number of sales for the June quarter 2011 represent approximately 70% of total sales, as not all sales records have been processed. Records with insufficient geographic detail have been excluded. Source: Department of Environment and Resource Management

Source: Department of Environment and Resource Management

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Home Ownership

Flat/unit prices
Chart 7 shows the median flat/unit price in Queensland had not changed from the previous quarter and was recorded as $350,000 as at June Quarter 2011. Also shown in Chart 7 are median flat/unit prices for Queenslands 15 most populated LGAs, listed in descending order of population. Gladstone recorded the highest median flat/unit price at $442,500. Brisbane, Gold Coast, Redland and Sunshine Coast also recorded median flat/unit prices above or equal to the median price for Queensland ($395,000, $365,000, $352,500 and $350,000 respectively). There was a significant difference to the next highest LGA with Moreton Bay recording a median flat/unit price of $315,000, $35,000 below the Queensland median. Cairns and Toowoomba recorded the most affordable median flat/unit prices for the June Quarter 2011 at $205,000 and $227,000 respectively. Table 5 includes the percentage change in median flat/unit prices for Queensland and its 15 most populated LGAs, over the quarter and over the year to June Quarter 2011. Given the relatively small sales volumes for some of these LGAs, percentage change over time may reflect variances in the type of flats/units sold in each quarter. Queenslands median flat/unit price was $350,000 over the June Quarter representing no change from the March Quarter 2011. Over the year to June 2011, the Queensland median price for this dwelling type recorded a decline of $15,000 or -4.1%.

Over the quarter, there was a significant increase in median flat/unit prices for Gladstone, with an increase of 29% or $100,000, rising from $342,500 in the March Quarter 2011 to $442,500 in the June Quarter 2011. Other changes of note over the June quarter include: another increase in median flat/unit price recorded for the Fraser Coast, up 5.8% or $15,000 after a 16.7% increase to the March Quarter 2011, though still $10,000 below the median price for this LGA in June 2010; decreases in median prices for Toowoomba and Rockhampton, both down 11% ($28,000 and $32,000 respectively); no change for the Gold Coast; and a $22,000 decrease for Cairns. Similar to the year to March quarter 2011, twelve out of the states 15 most populated LGAs recorded a decrease in median flat/unit prices over the year to June Quarter 2011. In contrast to the year to March Quarter 2011 where Gladstone recorded the most significant decrease in median price (down $50,000 or 13.5%), for the year to June Quarter 2011 Gladstone recorded the largest increase rising 24.5% or $84,000 to a median price of $442,500. The only other two increases recorded for the year to June Quarter 2011 were for Ipswich (up 9.6% or $25,000) and Bundaberg (up 5.4% or $13,000). The most significant of the decreases were recorded for Cairns (down $80,000 or 28.1%) and Sunshine Coast (down 9.1% or $35,000).

Chart 7

(as at June quarter 2011)

Queensland Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C)
$261,500 $300,000 $205,000 $285,000 $227,000 $352,500 $305,000 $260,000 $272,500 $255,000 $442,500 $0 $200,000 $400,000 $600,000 $315,000 $350,000 $350,000 $395,000 $365,000

Median flat/unit price

Table 5 - FLATS/UNITS

Percentage change in median sales prices

15 LARGEST LGAs in order of population Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C) Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R) Queensland Jun Qtr 2010 Median $sales Mar Qtr 2011 Median $sales Median $sales June Quarter 2011 % Change % Change No. over year over qtr sales -3.9% -2.4% -7.3% -9.1% -0.4% -8.0% -28.1% 9.6% -5.9% -3.1% -3.9% -3.7% -3.5% 5.4% 24.5% -4.1% 0.6% 0.0% -1.6% -1.4% -2.5% -5.5% -9.7% -2.6% -11.0% 2.2% 0.4% -11.0% 5.8% 2.6% 29.2% 0.0% 1,179 1,035 193 397 102 101 173 40 61 54 53 35 31 27 61 3,642

$411,000 $392,750 $395,000 $374,000 $365,000 $365,000 $339,925 $320,000 $315,000 $385,000 $355,000 $350,000 $262,500 $268,250 $261,500 $326,000 $317,500 $300,000 $285,000 $227,000 $205,000 $260,000 $292,500 $285,000 $241,165 $255,000 $227,000 $363,750 $345,000 $352,500 $317,500 $303,750 $305,000 $270,000 $292,000 $260,000 $282,500 $257,500 $272,500 $242,000 $248,500 $255,000 $355,500 $342,500 $442,500 $365,000 $350,000 $350,000

LGAs

Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R)

Median flat/unit price ($)

Note that the number of sales for the June quarter 2011 represent approximately 70% of total sales, as not all sales records have been processed. Records with insufficient geographic detail have been excluded. Source: Department of Environment and Resource Management

Source: Department of Environment and Resource Management

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Home Ownership

Vacant land prices

Chart 8 shows the median vacant land price in Queensland was $185,000 as at June Quarter 2011. Also shown in Chart 8 are median vacant land prices for Queenslands 15 most populated LGAs, listed in descending order of population. Brisbane and the Sunshine Coast recorded the highest median vacant land prices at $285,000 and $260,000 respectively, significantly higher than the Queensland median. Gold Coast, Gladstone, Logan and Moreton Bay form the next tier of LGAs with median prices above the state average, followed by Ipswich, Mackay Cairns and Townsville. With the exception of Redland, whose median vacant land price was driven down by a significantly higher number of island sales, the following LGAs had the most affordable median vacant land price of the LGAs shown: Fraser Coast ($132,500), Toowoomba ($141,000) and Bundaberg ($141,250). Rockhampton ($157,500), Townsville ($168,950) and Cairns ($169,500) median vacant land prices were also under the Queensland median for the quarter.

Table 6 includes the percentage change in median vacant land prices for Queensland and its 15 most populated LGAs, over the quarter and over the year to June Quarter 2011. In line with the trend recorded for detached houses for the same period, Queenslands median vacant land price decreased by 2.6% (or $5,000) over the quarter to $185,000. Over the year to June Quarter 2011 Queenslands median vacant land price declined 2.5% (or $4,750) which was in line with recorded declines for detached houses and flats/units over the year. Over the quarter, Gladstone recorded the largest increase in median vacant land price (up $25,000 or 12.8%), followed by Rockhampton (up $8,000 or 5.4%) and Townsville (up 2.5% or $4,200). Twelve of the fifteen LGAs shown recorded declines in median vacant land price over the June Quarter 2011 with the Gold Coast recording the largest decline (down $25,000 or 9.8%). Redland ($24,500 or 28.0%), Cairns ($20,500 or 10.8%), Toowoomba ($19,000 or 11.9%), Logan ($15,250 or 6.8%) and the Sunshine Coast ($15,000 or 5.5%) also recorded declines in median vacant land price over the quarter. Over the year to June 2011 the strongest increase in median vacant land prices occurred in Gladstone (up $35,700 or 19.4%), Bundaberg, Rockhampton and Cairns also showed strong growth over the year. Excluding Redland, the sharpest decline in median vacant land prices over the year to June Quarter 2011 occurred in the Gold Coast (down $25,000 or 9.8%). Declines over the year in median vacant land prices also occurred in Brisbane, Logan, Moreton Bay, Sunshine Coast, Fraser Coast, Toowoomba, Townsville and Mackay.

Chart 8

Median vacant land price

(as at June quarter 2011)
$185,000 $285,000 $228,999 $205,000 $260,000 $209,750 $168,950 $169,500 $179,000 $141,000 $63,000 $178,500 $157,500 $132,500 $141,250 $220,000 $0 $200,000 Median land price ($) $400,000

Table 6 - VACANT LAND

Percentage change in median sales prices

Jun Qtr 2010 Median $sales Mar Qtr 2011 Median $sales Median $sales June Quarter 2011 % Change % Change No. over year over qtr sales -5.0% -9.8% -2.4% -1.1% -6.8% -1.2% 2.7% 0.5% -2.8% -67.5% -2.5% 3.6% -8.3% 4.6% 19.4% -2.5% -3.7% -9.8% -2.8% -5.5% -6.8% 2.5% -10.8% -2.2% -11.9% -28.0% -4.8% 5.4% -8.6% -0.9% 12.8% -2.6% 135 94 212 120 98 96 84 141 99 71 92 102 82 58 111 2,038

Queensland Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C)

15 LARGEST LGAs in order of population Brisbane (C) Gold Coast (C) Moreton Bay (R) Sunshine Coast (R) Logan (C) Townsville (C) Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) * Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R) Queensland

$300,000 $296,000 $285,000 $254,000 $254,000 $228,999 $210,000 $211,000 $205,000 $263,000 $275,000 $260,000 $224,950 $225,000 $209,750 $170,995 $164,750 $168,950 $165,000 $190,000 $169,500 $178,050 $183,000 $179,000 $145,000 $160,000 $141,000 $193,750 $87,500 $63,000 $183,000 $187,500 $178,500 $152,000 $149,500 $157,500 $144,500 $145,000 $132,500 $135,000 $142,500 $141,250 $184,300 $195,000 $220,000 $189,750 $190,000 $185,000

LGAs

Cairns (R) Ipswich (C) Toowoomba (R) Redland (C) * Mackay (R) Rockhampton (R) Fraser Coast (R) Bundaberg (R) Gladstone (R)

Note that the number of sales for the June quarter 2011 represent approximately 70% of total sales, as not all sales records have been processed. Records with insufficient geographic detail have been excluded. *The significantly lower June quarter 2011 median sales price for Redland (C) is a result of a higher proportion of land sales attributed to the islands located within this Local Government Area. Source: Department of Environment and Resource Management

*The significantly lowerDepartment of Environment and Natural Resourcesresult of a higher Source: QVAS, March quarter 2011 median sales price for Redland (C) is a proportion of land sales attributed to the islands located within this Local Government Area.

Source: Department of Environment and Resource Management

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Home Ownership

Housing finance and planned residential construction

New loans by dwelling type
New loans (excluding refinancing) taken out in Queensland by owner occupiers for home purchase are shown in Chart 9 for the year to June Quarter 2011. This is broken down further into type of purchase, including the purchase of new dwellings, established dwellings and the construction of new dwellings. The 17,309 loans taken out by owner occupiers for the June Quarter 2011 represents an increase of 1,031 loans (6.3%) on the March Quarter 2011 figure. New loans taken out in the June Quarter 2011 are down 1,762 loans or 9.24% over the year. This decline in new loans over the year has occurred across all dwelling types: loans for purchases of new dwellings have declined by 9.6% (or 89 loans); loans for construction of new dwellings have declined by 19.2% (or 603 loans); and loans for purchase of established dwellings have declined by 7.1% (or 1,070 loans).

New loans by buyer type

New loans for dwelling purchase in Queensland over the year to June Quarter 2011 are shown in Chart 10. New loans for dwelling purchase are broken down by first home buyers, investors and non-first home buyers. A total of 3,902 Queensland homebuyers bought their first property in June quarter 2011, reflecting a slight increase in new loans across the June Quarter 2011. This figure is up 7.3% over the quarter. On average, over the year to June 2011 there were 3,929 first homebuyers per quarter, significantly less than the average of 6,706 per quarter for the previous year (to June 2010) who took advantage of the First Home Owners Grant Boost (applicable to contracts made between 14 October 2008 and 31 December 2009 inclusive). The number of estimated new loans taken out by investors increased by 1,541 loans (17.6%) over June Quarter 2011, though this figure is down 2,149 loans (-17.3%) on the June Quarter 2010 figure.

Chart 9
50,000

Queensland new loans for dwelling purchase by buyer type

(Quarterly, June 2010 - June 2011)
38,009 40,560 39,637 32,198 35,683

Chart10

Breakdown of new loans in Queensland for home purchase by owner occupiers*

(Quarterly, June 2010 - June 2011)
20,179
893 2,937

25,000

40,000

3,716

3,873

4,335 3,902 11,285 3,636 8,735 10,276

Number of loans

20,000

19,071
923 3,146

19,041
851 3,164

Number of loans

16,278
695 2,232

17,309
834 2,543

30,000

12,425

10,623

15,000

20,000

10,000

23,496

23,513

24,940 19,827

10,000
15,002 15,026 16,349 13,351 13,932

21,505

5,000
0 Jun. qtr 2010 Sep. qtr 2010 Dec. qtr 2010 Mar. qtr 2011 Jun. qtr 2011

* The number of investors is an estimate based on the total value of investor loans in Queensland, divided by non-first home buyer average loan size (BIS Shrapnel method). Note investor estimates have been revised from those shown in previous reports. Source: Australian Bureau of Statistics, Department of Communities

First home buyers Investors* Non-first home buyers

0
Jun. qtr 2010 Sep. qtr 2010 Dec. qtr 2010 Mar. qtr 2011 Jun. qtr 2011

Purchase of established dwellings

Source: Australian Bureau of Statistics

Construction of dwellings

Purchase of new dwellings * Excluding refinancing loans

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

Economic Update

Dwelling approvals
Seasonally adjusted residential dwelling approvals for the private sector in Queensland are shown in Chart 11. Monthly figures from June 2009 through to June 2011 are outlined for new houses and other new residential dwellings (flats/units/ townhouses). There has been a notable decline in dwelling approvals for the construction of new houses since January 2010, reaching a low point in early 2011 and showing signs of improvement over the June Quarter 2011. Over the year to June Quarter 2011 there were 6619 fewer approvals for the construction of new houses than there was for the year to June 2010. On average, there were 1,349 new house approvals per month over the six months to June 2011, notably lower than the monthly average of 1,565 approvals over the preceding six months. Dwelling approvals for all other residential dwellings for the quarter to June 2011 increased by 573 and totalled 2660, representing an improvement of 21.17% on the March Quarter 2011. There was an 8.7% increase in approvals between the year to June 2010 and the year to June 2011. The Queensland Government announced a $10,000 Building Boost Grant (applicable to contracts made between 1 August 2011 and 31st of January 2012). Queensland Treasury notes that dwelling investment is likely to remain subdued for the second half of 2011. This outlook reflects a number of factors including a moderation in population growth, higher interest rates and tight credit conditions 1.
Chart 11

ECONOMIC UPDATE
This update provides an overview of how the Queensland economy is performing in terms of economic growth, unemployment and interest rates.

Economic growth
Queenslands economic performance, measured by percentage growth in Gross State Product (GSP), is shown in Chart 12, over the March Quarter and over the year to March Quarter, for 2010 and 2011. Note the March Quarter 2011 data represents the most recent quarterly statistics available from OESR. The Queensland economy had negative growth of -1.4% over the March Quarter 2011, compared to growth of 1.1% for the March Quarter 2010. Queenslands economic performance dropped to -2.1% over the year to March Quarter 2011.

(Seasonally adjusted, private sector, monthly, June 2009 to June 2011)

Queensland residential dwelling approvals

Chart 12

2,500

New houses Other new residential dwellings

2,000
1,486 1,461 1,320

(% change, CVM*, trend**, December 2009 and 2010) 3.0%

Queensland's economic performance (Gross State Product)

1.6%

2.0%

Number of dwellings

1.1%
1.0%

1,500

1,946

1,000
771

0.0%

500
565

352

709

-1.0%

% change over qtr % change over % change over qtr % change over year year Mar quarter 2010 Mar quarter 2011 -1.4% -2.1%

-2.0%
Sep 2009 Sep 2010 Dec 2009 Mar 2010 Jun 2010 Dec 2010 Mar 2011 Jun 2011

0
Jun 2009

-3.0%
* CVM refers to Chain Volume Measure, which removes the impacts of price changes over time. The CMV reference year is 2008-09. ** Trend figures are also used, as opposed to original or seasonally adjusted. Source: Office of Economic and Statistical Research, Queensland Treasury

Source: Australian Bureau of Statistics

Queensland Economic Review August 2011, pg 1. Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

10

Economic Update

Population growth or 3 bedroom

Chart 13 illustrates the total quarterly population change in Queensland over the year to December Quarter 2010, the most recent quarterly statistics available from the ABS. The components driving population change in Queensland, including natural increase, net overseas migration (NOM) and net interstate migration, are also shown. Queenslands estimated population at 31 December 2010 was 4,548,661 persons, accounting for 20.2% of the Australian population. Queenslands population increased by an estimated 76,040 persons over the 12 months to 31 December 2010. This represented a growth rate of 1.7%, the third highest rate of population growth of all states and territories, and higher than for Australia (1.5%). The absolute increase in Queenslands population for the December Quarter 2010 was an estimated 16,392 persons and represents a slight decrease on the figures recorded for the previous quarter (18,419). However, the previous quarters figures showed the smallest quarterly growth in population recorded since June Quarter 2001. Natural increase contributed to a gain of 8,296 persons in the December Quarter 2010 down 10.25% or 947 persons on the September Quarter 2010. Natural increase represented 51% of the population change for the quarter. Net overseas migration has contributed significantly to Queenslands population growth in recent years, however the 6,288 persons gained through NOM in the December Quarter 2010 was the lowest recorded since the June Quarter 2006. Queensland Treasury notes that Changes to migration rules and improvements in economic conditions in some key source countries has slowed net overseas
Chart 13

migration flows since March 2009.2 Additionally, BIS Shrapnel has noted that the poor economic environment in Queensland has weakened its pulling power as an attractive migration destination 3. Persons migrating to Queensland from interstate numbered 1,808 persons in the December Quarter 2010, down 1,156 persons or 39% over the year. On average, 2,394 persons migrated to Queensland per quarter in 2010, significantly lower than the average of 4,597 per quarter in 2009. Whilst net interstate migration to Queensland has been gradually declining since 2002/03, Queensland Treasury notes the easing recorded in 2009/10 can be attributed to weaker economic growth nationally, impacting on interstate migratory flows.

Interest rates
The Reserve Bank of Australias (RBA) cash rate along with variable and 3 year fixed home loan interest rates for banks and non-banking financial institutions is shown in Chart 14, for June 2009 to June 2011. The last cash rate rise was in November 2010 from 4.50% to 4.75%. The banks and non-bank lenders followed suit, raising their home loan rates beyond the official cash rate increase to 7.80% and 7.35% respectively. The non-bank lenders rate has since decreased to 7.30% in February and 7.20% in April 2011. On August 2, 2011 at the RBA Boards Monetary Policy Meeting it was stated that the Board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks. 4
Chart 14

Recent changes in home loan rates and the RBA target cash rate
(Monthly, June 2009 - June 2011)

Components of Queensland population change (Quarterly, December 2009 - December 2010)

22,539
2,964

9.0% 8.0% 7.0% 6.90% 7.80%

25,000

23,768
1,430

20,000

17,461
10,876 8,520

18,419
1,688

5.80% 6.0%
16,392
1,808

Number of persons

2,317
7,488 6,943

5.0% 4.0% 3.00% 3.0% 2.0%

4.00%

4.75%

15,000

6,288

10,000

5,000

11,055

11,462 8,201

9,243

1.0%
8,296

3 year fixed home loan rate Variable non-bank home loan rate RBA target cash rate Variable bank home loan rate

0.0%
Mar-2010 Sep-2009 Dec-2009 Sep-2010 Dec-2010 Mar-2011 Jun-2009 Jun-2010

Dec. qtr 2009*

Natural increase

Mar. qtr 2010

Jun. qtr 2010

Sep. qtr 2010

Dec. qtr 2010

Net overseas migration

Net interstate migration

Source: Reserve Bank of Australia

Source: Australian Bureau of Statistics

* Approximately 1,800 births registered in December quarter 2009 occurred in 2008 and earlier as a result of the Queensland registry finalising birth registrations which were previously incomplete (i.e. retrospective birth registrations).

2 3 4

Queensland Economic Review January 2011 pg 2. Building Industry Prospects January 2011, pg 2. Statement on Monetary Policy Decision, August 2011.

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

11

Economic Update

Wages & Prices

By examining trends in wages growth and consumer prices over time, a perspective can be formed on how changes in these indicators impact the ability of Queensland households to afford costs associated with housing. Chart 15 shows the quarterly seasonally adjusted percentage changes in Average Weekly Earnings (AWE) for Queensland over the year to May Quarter 2011. Note that AWE data is reported on a different quarterly basis to other ABS data provided in this Report. There was a recovery in AWE growth for the May Quarter 2011 with an increase of 1.4% since February Quarter 2011.

Chart 16 shows the quarterly percentage changes for Brisbane in the overall Consumer Price Index (CPI) as well as the Housing component of the CPI which measures the price changes of items such as rents, utilities, housing purchases, rates, repairs and maintenance. Note that CPI data is available at the national level and capital city level only. Percentage growth in the overall CPI for Brisbane rose to 1.0% over the June Quarter 2011, compared to 1.3% in the previous quarter. Queensland Treasury notes the rise in CPI is largely reflecting the flow-on effect of the natural disasters on food prices . The RBA has notes that year-ended CPI inflation has been high, affected by the extreme weather events earlier in the year. As these effects reverse over the next couple of quarters, CPI inflation should decline.5

Chart 7 shows median prices for flats/units as at December 2004 and December 2009. Observable trends include:

Chart 15

(% quarterly change, seasonally adjusted, May 2010 to May 2011)

Queensland average weekly earnings (Full-time adult ordinary time earnings)

Chart 16

(% quarterly change, June 2010 to June 2011)

Brisbane's price level changes

3.0% 2.5%

3.0% 2.5% 2.0%

1.4%

2.8%

Brisbane CPI Brisbane CPI housing component

2.1%
2.0% 1.5% 1.0% 0.5%

1.5%
0.8%

1.3% 1.0% 0.7% 0.5% 0.5% 0.5% 1.0% 0.5%

1.0%
0.1%

0.0%

0.5%
-0.1%

0.4%

-0.5%

May qtr. 2010

Aug. qtr 2010

Nov. qtr 2010

Feb. qtr 2011

May. qtr 2011

0.0%
Jun. qtr 2010 Sep. qtr 2010 Dec. qtr 2010 Mar. qtr 2011 Jun. qtr 2011
Source: Australian Bureau of Statisitics

Source: Australian Bureau of Statisitics

5 Housing and Homelessness Services www.housing.qld.gov.au

Statement on Monetary Policy Decision, August 2011.

Queensland housing market report June Quarter 2011

12

Economic Update

Unemployment
Chart 17 shows the monthly seasonally adjusted unemployment rate for Queensland and Australia for the year to June 2011. The unemployment rate is measured as the percentage of the labour force which is unemployed and looking for part or full time work. The Queensland unemployment rate had been trending upwards since September 2010 reaching 6.0% in December 2010. From January 2011 onwards unemployment has declined dropping to 5.5% for the March Quarter 2011 5.3% in the June Quarter 2011. Queenslands unemployment rate continues to track above the rate for Australian unemployment (4.9%). In looking forward, Queensland Treasury notes that While recent heightened financial market volatility may weight on business confidence and short term hiring intentions, leading indicators such as ABS job vacancies, suggested jobs growth will strengthen later in 2011. This should be supported by a recovery in agricultural employment following the floods and continued momentum in resources-related business investment.6

Chart 17

7.0%

(Monthly, seasonally adjusted, June 2010 to June 2011)

Queensland's rate of unemployment

6.5%

Queensland unemployment rate Australian unemployment rate

6.0% 6.0% 5.5%

Unemployment rate

6.0% 5.4%

5.5% 5.3% 5.0% 5.1%

5.1% 4.9% 4.9% 4.9%

4.5%

4.0%

May-2011

Nov-2010

Dec-2010

Mar-2011

Jan-2011

Apr-2011

Jun-2010

Aug-2010

Sep-2010

Source: Australian Bureau of Statistics

Queensland Economic Review August 2011, pg 2.

Housing and Homelessness Services www.housing.qld.gov.au

Feb-2011

Jun-2011

Jul-2010

Oct-2010

Queensland housing market report June Quarter 2011

13

Housing and Economic Statistics Tables

HOUSING AND ECONOMIC STATISTICS TABLES

Housing and Economic Statistics Tables provide a further private rental and home ownership data and other indicators such as the consumer price index by capital city, average loan by states sizes and rates of unemployment by states.

Private rental tables

Table 7 - 3 BEDROOM DETACHED HOUSES Regional rental prices (quarterly) OTHER LARGE LGAs (in order of population) Jun Qtr 2010 Median $rent Mar Qtr 2011 Median $rent Median $rent $250 $270 $300 $275 $240 $320 $235 $270 $283 $490 $440 $500 $260 $243 $300 $345 $245 $260 $260 $190 $193 $270 $300 $340 June quarter 2011 % Change % Change New bonds over year over qtr 2.0% 2.9% -1.6% 4.8% 2.1% -8.6% 6.8% 0.0% 8.7% 22.5% -20.0% 11.1% -5.5% -3.0% 0.0% 15.0% 2.1% 10.6% 13.0% 5.6% -2.5% 5.9% -6.3% 3.0% 0.0% 0.0% 1.7% 5.8% 4.3% -3.0% 2.2% 3.8% 1.8% 22.5% -26.7% 7.5% -3.7% -6.7% 15.4% 4.5% -5.8% 13.0% 8.3% -5.0% -8.3% 6.9% -14.3% 0.0% 174 150 107 117 152 190 163 136 92 94 119 68 62 68 78 55 52 40 41 37 12 15 8 13,192

LGAs with populations between 20,000 to less than 50,000 Gympie (R) Tablelands (R) Scenic Rim (R) Lockyer Valley (R) Southern Downs (R) Whitsunday (R) South Burnett (R) Western Downs (R) Cassowary Coast (R) Central Highlands (R) Isaac (R) Mount Isa (C) Somerset (R) LGAs with populations between 10,000 $245 $250 $263 $270 $305 $295 $263 $260 $235 $230 $350 $330 $220 $230 $270 $260 $260 $278 $400 $400 $550 $600 $450 $465 $275 $270 to less than 20,000 $260 $260 $330 $260 $230 $240 $200 5,000 $210 $253 $350 $340

Burdekin (S) $250 Banana (S) $300 Maranoa (R) $300 Charters Towers (R) $240 Hinchinbrook (S) $235 Goondiwindi (R) $230 North Burnett (R) $180 LGAs with populations between 3,000 to less than Murweh (S) Longreach (R) Cloncurry (S) Queensland $198 $255 $320 $330

Note that LGAs with less than 10 rental bonds have not been shown. Source: Residential Tenancies Authority

Housing and Homelessness Services www.housing.qld.gov.au

Queensland housing market report June Quarter 2011

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Housing and Economic Statistics Tables

Table 8 - 2 BEDROOM FLATS/UNITS Regional rental prices (quarterly) OTHER LARGE LGAs (in order of population) Jun Qtr 2010 Median $rent Mar Qtr 2011 Median $rent Median $rent $175 $200 $200 $230 $185 $250 $180 $210 $208 $320 $225 $350 $180 $200 $245 $163 $185 $165 $130 June Quarter 2011 % Change % Change New bonds over year over qtr -5.4% 5.3% -4.8% 7.0% 15.6% -3.8% 1.4% 0.0% 15.3% 12.3% 0.0% 12.9% 0.0% -4.8% 34.2% -11.0% 13.8% -2.9% 30.0% -5.8% 5.3% 0.0% 1.1% -2.6% 0.0% 0.0% -8.7% -1.2% 28.0% -10.0% 9.4% 0.0% -2.4% 11.4% -12.2% 3.7% -2.9% 30.0% 46 54 25 23 61 194 50 39 94 41 13 95 53 15 10 10 27 37 7

LGAs with populations between 20,000 to less than 50,000 Gympie (R) Tablelands (R) Scenic Rim (R) Lockyer Valley (R) Southern Downs (R) Whitsunday (R) South Burnett (R) Western Downs (R) Cassowary Coast (R) Central Highlands (R) Isaac (R) Mount Isa (C) LGAs with populations between 10,000 Burdekin (S) Banana (S) Maranoa (R) Charters Towers (R) Hinchinbrook (S) Goondiwindi (R) Queensland $185 $186 $190 $190 $210 $200 $215 $228 $160 $190 $260 $250 $178 $180 $210 $230 $180 $210 $285 $250 $225 $250 $310 $320 to less than 20,000 $180 $210 $183 $183 $163 $170 $100 $180 $205 $220 $185 $178 $170 $100

Note that LGAs with less than 10 rental bonds have not been shown. Source: Residential Tenancies Authority

Table 9 - RENT ASSISTANCE RATES Centrelink, Australian Government FAMILY SITUATION Single, no dependent children Single, sharer, no dependent children Couple, no dependent children One of a couple who are separated due to illness, no children* One of a couple who are temporaily separated, no children Single, 1 or 2 children Single, 3 or more children Couple, 1 or 2 children Couple, 3 or more children

July 2011 No payment if your Maximum payment Maximum payment fortnightly rent is if your fortnightly per fortnight less than rent is more than $116.40 $77.60 $109.80 $116.40 $109.80 $136.78 $154.56 $136.78 $154.56 $103.60 $103.60 $168.60 $103.60 $103.60 $136.36 $136.36 $201.74 $201.74 $258.80 $207.07 $315.00 $258.80 $250.00 $318.73 $342.44 $384.11 $407.82

No dependents

With dependents

* Includes respite care and partner in prison. Special rules apply if you are single sharer, pay board and lodging or live in a retirement village. Source: http://www.centrelink.gov.au/internet/internet.nsf/payments/rent_assistance.htm

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Home ownership tables

Table 10 - DETACHED HOUSES Regional property prices (quarterly) OTHER LARGE LGAs (in order of population) Jun Qtr 2010 Mar Qtr 2011 June Quarter 2011 % Change over year -3.4% -2.2% -3.3% -8.6% 6.8% -11.0% -7.3% -2.0% -24.0% 9.6% 11.9% -4.7% -4.6% -10.0% -1.2% -3.5% -13.4% -11.7% -7.7% -2.8% -4.6% -12.8% -5.2% % Change over qtr 4.3% -1.6% -6.5% -7.1% 0.0% -9.9% -6.5% -2.2% -18.9% 2.9% 9.3% 2.2% 0.0% -15.1% -18.2% -19.8% -16.7% -16.8% 41.4% -9.1% 40.9% -14.6% -3.0% No. sales 112 92 72 74 81 68 79 79 33 123 88 68 37 30 34 46 24 18 18 20 11 13 10,649

Median $sales Median $sales Median $sales $320,000 $322,000 $400,000 $320,000 $257,500 $385,000 $259,000 $274,500 $300,000 $345,000 $420,000 $370,000 $325,000 $296,250 $320,000 $413,750 $315,000 $275,000 $380,000 $256,750 $275,000 $281,000 $367,500 $430,000 $345,000 $310,000 $309,000 $315,000 $387,000 $292,500 $275,000 $342,500 $240,000 $269,000 $228,000 $378,000 $470,000 $352,500 $310,000 $225,000 $249,500 $275,000 $216,500 $216,250 $226,250 $159,000 $155,000 $205,000 $407,499

LGAs with populations between 20,000 to less than 50,000 Gympie (R) Tablelands (R) Scenic Rim (R) Lockyer Valley (R) Southern Downs (R) Whitsunday (R) South Burnett (R) Western Downs (R) Cassowary Coast (R) Central Highlands (R) Isaac (R) Mount Isa (C) Somerset (R)

LGAs with populations between 10,000 to less than 20,000 Burdekin (S) $250,000 $265,000 Banana (S) $252,500 $305,000 Maranoa (R) $285,000 $343,000 Charters Towers (R) $250,000 $260,000 Hinchinbrook (S) $245,000 $260,000 Goondiwindi (R) $245,000 $160,000 North Burnett (R) $163,500 $175,000 LGAs with populations between 3,000 to less than 5,000 Murweh (S) Longreach (R) Queensland $162,500 $235,000 $430,000 $110,000 $240,000 $420,000

Note that the number of sales for the March quarter 2011 represent approximately 70% of total sales, as not all sales records have been processed. LGAs with less than 10 sales records have not been shown. Records with insufficient geographic detail have been excluded. Source: Department of Environment and Resource Management

Table 11 - FLATS/UNITS Regional property prices (quarterly) OTHER LARGE LGAs (in order of population) Jun Qtr 2010 Mar Qtr 2011 June Quarter 2011 % Change over year 49.5% -33.3% 12.9% -4.1% % Change over qtr 12.8% -20.0% 12.9% 0.0% No. sales 8 23 10 3,642

Median $sales Median $sales Median $sales

LGAs with populations between 20,000 to less than 50,000 Scenic Rim (R) Whitsunday (R) Central Highlands (R) Queensland $200,000 $345,000 $280,000 $365,000 $265,000 $287,500 $280,000 $350,000 $299,000 $230,000 $316,000 $350,000

Note that the number of sales for the March quarter 2011 represent approximately 70% of total sales, as not all sales records have been processed. LGAs with less than 10 sales records have not been shown. Records with insufficient geographic detail have been excluded. Source: Department of Environment and Resource Management

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Table 12 - VACANT LAND Regional land prices (quarterly) OTHER LARGE LGAs (in order of population) Jun Qtr 2010 Mar Qtr 2011 June Quarter 2011 % Change over year -6.1% 24.6% 7.9% 0.8% -23.5% -13.8% 21.8% -8.6% -23.6% 6.1% -2.5% % Change over qtr -5.3% 19.0% -0.7% -3.7% -12.2% -13.8% 14.0% -30.8% -26.1% 2.8% -2.6% No. sales 53 26 19 37 48 34 31 14 21 23 2,038

Median $sales Median $sales Median $sales $132,000 $118,000 $190,000 $129,000 $170,000 $105,000 $110,000 $140,000 $137,500 $138,500 $189,750 $131,000 $123,500 $206,500 $135,000 $148,000 $105,000 $117,500 $185,000 $142,000 $143,000 $190,000 $124,000 $147,000 $205,000 $130,000 $130,000 $90,500 $134,000 $128,000 $105,000 $147,000 $185,000

LGAs with populations between 20,000 to less than 50,000 Gympie (R) Tablelands (R) Scenic Rim (R) Lockyer Valley (R) Whitsunday (R) South Burnett (R) Western Downs (R) Cassowary Coast (R) Central Highlands (R) Somerset (R) Queensland

Note that the number of sales for the March quarter 2011 represent approximately 70% of total sales, as not all sales records have been processed. LGAs with less than 10 sales records have not been shown. Records with insufficient geographic detail have been excluded. Source: Department of Environment and Resource Management
Table 13 - AVERAGE HOME LOAN SIZES IN AUSTRALIA For all dwellings, by state (monthly) NSW June 2010 September 2010 December 2010 March 2011 June 2011 Annual % Change $314,200 $313,000 $320,000 $315,000 $325,300 3.5% VIC $290,500 $286,500 $288,800 $285,600 $289,500 -0.3% QLD $279,400 $280,900 $272,500 $276,100 $275,400 -1.4% SA $221,900 $224,000 $229,400 $224,500 $226,200 1.9% WA $286,700 $283,200 $277,500 $278,100 $264,700 -7.7% TAS $189,500 $188,200 $180,200 $186,400 $195,900 3.4% NT $264,600 $296,500 $279,900 $299,900 $273,300 3.3% ACT $257,400 $275,400 $272,400 $274,200 $272,400 5.8%

Source: Australian Bureau of Statistics, Cat. No. 5609.0, Table 10c.

Table 14- AVERAGE HOME LOAN SIZES IN QUEENSLAND By dwelling and buyer type (monthly) Purchase of Construction Purchase of established of dwellings new dwellings dwellings June 2010 September 2010 December 2010 March 2011 June 2011 Annual % Change $299,800 $287,200 $275,000 $288,000 $275,000 -8.3% $305,000 $311,000 $316,600 $336,100 $334,000 9.5% $275,600 $279,100 $270,600 $272,800 $273,100 -0.9% Refinancing of dwellings $235,700 $240,400 $227,500 $241,500 $249,400 5.8% All dwellings $279,400 $280,900 $272,500 $276,100 $275,400 -1.4% First home buyers $279,800 $282,200 $283,400 $275,500 $272,700 -2.5% Non-first home buyers $279,300 $280,700 $270,600 $276,200 $275,900 -1.2%

*Note that 'Purchase of established dwellings' includes refinancing across lending institutions. Source: Australian Bureau of Statistics, Catalogue 5609.0, Tables 9b and 10c

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Economic tables
Table 15 - QUEENSLAND RESIDENTIAL DWELLING APPROVALS Private and public sector (monthly) Jun 2010 Private Sector, new houses Public Sector, new houses Total Dwelling Approvals for New Houses Private Sector, other residential Public Sector, other residential Total Dwelling Approvals for Other Residential Buildings Private Sector, total dwelling approvals Public Sector, total dwelling approvals Total Dwelling Approvals* 1,671 36 1,707 914 357 1,271 2,585 393 2,978 Sep 2010 1,791 11 1,802 801 80 881 2,592 91 2,683 Dec 2010 1,299 6 1,305 974 38 1,012 2,273 44 2,317 Mar 2011 1,539 47 1,586 374 10 384 1,913 57 1,970 Jun 2011 % Change over year 1,446 -13.5% 15 1,461 779 39 818 2,225 54 2,279 -58.3% -14.4% -14.8% -89.1% -35.6% -13.9% -86.3% -23.5% % Change over qtr -6.0% -68.1% -7.9% 108.3% 290.0% 113.0% 16.3% -5.3% 15.7%

* Note that Total Dwelling Approvals excludes approvals for alterations and additions, and conversions, which represent a very small number. Source: Australian Bureau of Statistics, Catalogue 8731.0, Table 14

Table 16 - INTEREST RATES Cash rate and mortgage lender rates (monthly) RBA cash rate June 2010 September 2010 December 2010 March 2011 June 2011 4.50% 4.50% 4.75% 4.75% 4.75% Standard nonChange in RBA bank* variable cash rate home loan rate 0.50% 0.00% 0.25% 0.00% 0.00% 6.95% 6.95% 7.35% 7.30% 7.20% Change in variable nonbank* rate 0.45% 0.00% 0.40% -0.05% -0.10% Standard bank variable home loan rate 7.40% 7.40% 7.80% 7.80% 7.80% Change in variable bank rate 0.50% 0.00% 0.40% 0.00% 0.00%

* Non-Bank lenders refer to non-banking financial institutions that sell home loans, e.g. Aussie Home Loans. Source: Reserve Bank of Australia, Statistical Tables: A02 and F05.

Table 17 - AUSTRALIAN CONSUMER PRICE INDEX COMPONENTS Breakdown of all groups (quarterly) Jun. qtr 2010 190.7 290.6 107.5 159.7 128.0 266.8 166.5 112.3 135.6 313.8 110.7 172.1 Sep. qtr 2010 189.8 299.5 109.0 163.3 129.0 264.8 165.5 112.0 136.5 314.2 111.2 173.3 Dec. qtr 2010 194.0 301.8 106.9 164.3 128.2 261.7 165.9 112.1 136.8 314.2 110.7 174.0 Mar. qtr 2011 199.6 305.0 106.1 166.4 126.2 271.9 170.3 112.2 136.0 332.2 113.6 176.7 Jun. qtr 2011 202.4 307.0 108.7 167.1 128.1 277.4 172.4 112.7 135.2 332.2 115.4 178.3 % Change over year 6.1% 5.6% 1.1% 4.6% 0.1% 4.0% 3.5% 0.4% -0.3% 5.9% 4.2% 3.6% % Change over qtr 1.4% 0.7% 2.5% 0.4% 1.5% 2.0% 1.2% 0.4% -0.6% 0.0% 1.6% 0.9%

Food Alcohol and tobacco Clothing and footwear Housing Household contents and services Health Transportation Communication Recreation Education Finance and Insurance services Overall CPI*

* Note that the overall CPI is a weighted average of all groups of all the capital cities in Australia Source: Australian Bureau of Statistics, Catalogue 6401.0, Tables 3 and 4

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Table 18 - CONSUMER PRICE INDEX Australian capital cities (quarterly) Jun. qtr 2010 Housing (all cities) Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra Overall CPI (all cities) Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra 159.7 165.0 142.1 177.5 151.8 166.7 159.7 194.1 168.1 172.1 171.1 169.5 177.3 175.0 173.2 170.7 170.1 172.3 Sep. qtr 2010 163.3 168.8 144.8 182.5 155.4 170.0 164.1 197.9 170.6 173.3 172.5 170.5 179.1 176.6 174.0 172.4 171.9 173.4 Dec. qtr 2010 164.3 170.1 145.8 183.4 156.2 170.5 164.4 199.4 171.3 174.0 173.1 171.5 180.0 177.1 174.1 172.6 171.8 174.2 Mar. qtr 2011 166.4 171.9 149.2 184.2 160.4 170.8 167.4 200.3 172.7 176.7 175.9 174.4 182.3 180.0 176.1 174.9 173.7 176.8 Jun. qtr 2011 167.1 173.4 149.4 185.2 159.1 171.6 167.9 200.5 173.1 178.3 177.6 175.6 184.1 181.8 178.4 176.5 175.4 178.7 % Change % Change over year over qtr 4.6% 5.1% 5.1% 4.3% 4.8% 2.9% 5.1% 3.3% 3.0% 3.6% 3.8% 3.6% 3.8% 3.9% 3.0% 3.4% 3.1% 3.7% 0.4% 0.9% 0.1% 0.5% -0.8% 0.5% 0.3% 0.1% 0.2% 0.9% 1.0% 0.7% 1.0% 1.0% 1.3% 0.9% 1.0% 1.1%

Source: Australian Bureau of Statistics, Catalogue 6401.0, Table 5

Table 19 - RATES OF UNEMPLOYMENT (not seasonally adjusted) Across Australian capital cities and rural balances (monthly) Jun. qtr 2010 5.2% 5.0% 5.5% 5.3% 4.9% 6.3% 5.2% 4.5% 5.8% 5.0% 4.9% 5.3% 4.1% 4.3% 3.4% 6.0% 4.0% 7.5% 2.9% 3.2% 5.0% Sep. qtr 2010 5.1% 4.9% 5.4% 5.3% 4.7% 6.8% 5.3% 4.9% 5.6% 5.5% 5.7% 4.9% 4.7% 4.7% 4.7% 5.2% 4.8% 5.5% 2.8% 2.6% 5.1% Dec. qtr 2010 4.5% 4.1% 5.3% 4.7% 4.5% 5.4% 5.7% 5.7% 5.6% 5.5% 5.9% 4.3% 3.9% 3.9% 3.7% 5.3% 4.7% 5.7% 2.0% 3.2% 4.8% Mar. qtr 2011 5.4% 5.1% 5.9% 4.7% 4.5% 5.5% 6.2% 5.6% 6.7% 5.7% 5.8% 5.5% 4.7% 4.4% 5.6% 5.6% 4.5% 6.3% 3.0% 3.2% 5.3% Jun. qtr 2011 5.2% 5.0% 5.5% 4.5% 4.4% 4.6% 5.1% 3.7% 6.3% 4.7% 4.6% 5.0% 4.2% 4.1% 4.7% 5.0% 4.2% 5.7% 3.4% 4.0% 4.8% % Change over year 0.0% 0.0% 0.0% -0.8% -0.5% -1.7% -0.1% -0.8% 0.5% -0.3% -0.3% -0.3% 0.2% -0.2% 1.3% -1.0% 0.2% -1.8% 0.5% 0.9% -0.2% % Change over qtr -0.2% -0.1% -0.4% -0.3% 0.0% -0.8% -1.0% -1.8% -0.4% -1.0% -1.2% -0.5% -0.5% -0.3% -0.9% -0.5% -0.3% -0.7% 0.4% 0.8% -0.5%

New South Wales Sydney Balance of New South Wales Victoria Melbourne Balance of Victoria Queensland Brisbane Balance of Queensland South Australia Adelaide Balance of South Australia Western Australia Perth Balance of Western Australia Tasmania Hobart Balance of Tasmania Northern Territory Australian Capital Territory Australia

Source: Australian Bureau of Statistics, Catalogue 6291.0 Table 2

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