I have come across plenty of research that predicts South East Queensland’s residential market will continue to witness reasonable activity but at a lower levels from last year. Whilst the threat of inflation as well as the international credit crisis still looms on the horizon, a stable if not steady market performance over 2009 is expected for South East Queensland due to the strong fundamentals in the region, these include positive net migration, low unemployment and robust local economic conditions.

The Australian economy is underpinned by low unemployment, high immigration, a stable trade union environment and moderate interest rates, which are not high by historic standards. The only real problem is liquidity and this affects new property development and re-financing of existing facilities. New projects on the drawing board are likely to be postponed until project funding can be accommodated. The extent of price reductions from recent economic turmoil will vary on locality and price bracket. Prime locations such as inner city or beachfront, with prices around $500,000-700,000 should not see little change, however in fringe locations and higher price brackets there could be prices fall in the order of 10-20% (Midwood Report, 2008).

• Supply/demand and rental fundamentals remain strong and prices should hold up especially for products below $500,000


• Biggest impacts are due to low interest rates


• Business confidence has softened slightly and sentiment in most markets has been impacted.


• There is little evidence to reflect these impacts, apart from a less sales.