Regional Queensland sellers face longer campaigns as values fall

Regional Queensland’s property slowdown is giving buyers more time and negotiating power, but sellers are finding that price reductions do not automatically produce a sale when borrowing capacity and confidence are falling.

Cotality figures reported by ABC News on Friday show regional Queensland dwelling values have declined 4 per cent since peaking in May. The falls have been larger in parts of south-east Queensland, with declines of up to 6 per cent across areas including the Gold Coast, Sunshine Coast and Toowoomba.

More affordable areas have been more resilient. Values in Darling Downs–Maranoa were down by less than 1 per cent, highlighting that there is no single regional Queensland market.

Cotality’s October Home Value Index recorded a 0.9 per cent monthly fall across regional Queensland and a 2.7 per cent decline over the three months to the end of October. Despite the recent downturn, values remained 3.5 per cent higher than a year earlier.

The clearest sign of changed conditions may be the time required to secure a buyer. According to the ABC report, homes across regional Queensland were taking an average of 43 days to sell, double the time recorded 12 months earlier.

More choice does not guarantee stronger demand

A slower market normally favours buyers. Listings remain available for longer, purchasers have more opportunity to compare properties and vendors are less likely to receive several competing offers immediately after an inspection.

Cotality research director Tim Lawless told the ABC that buyers could negotiate harder, but described the shortage of active purchasers as the missing element in the buyer-friendly conditions.

That helps explain why some vendors are struggling even after adjusting their expectations. A lower asking price may attract more inquiries, but a sale still depends on prospective buyers having sufficient finance and confidence to commit.

The Reserve Bank’s November rate increase has added to that constraint. Mr Lawless estimated that borrowing capacity had fallen by about 12 per cent, which is substantially more than the decline in regional Queensland dwelling values.

A household that can now borrow 12 per cent less does not regain its former purchasing power simply because a property is 4 or 6 per cent cheaper. Buyers may therefore remain unable to meet a seller’s revised price, particularly if they are also contending with a large deposit requirement and higher repayments.

Sellers need to respond to current evidence

In a rising market, vendors can sometimes set an ambitious price and wait for comparable sales to catch up. That strategy becomes riskier when prices are moving down and competing listings are accumulating.

A property that sits unsold for several months can become harder to reposition. Buyers may assume there is a problem with the home or that the vendor will eventually accept a much lower offer. Repeated small price reductions can also leave a campaign chasing the market rather than meeting it.

Sellers should base their expectations on recent settled sales for genuinely comparable properties, not asking prices or results achieved near the market’s peak. Location, condition and price bracket can produce very different outcomes even within the same regional centre.

Presentation also becomes more important when buyers have choice. Repairs, clear building records and realistic contract terms can reduce uncertainty for purchasers who are already cautious about borrowing costs.

Vendors who need to buy elsewhere should consider the two transactions together. Selling for less may be disappointing, but a weaker market can also reduce the price of the next home. The larger risk is committing to a purchase before understanding how long the existing property may take to sell.

Buyers still need finance discipline

Falling values create negotiating opportunities, but they do not necessarily make a home affordable. Buyers should update their loan pre-approval following the latest interest-rate change and allow for the possibility that a lender’s valuation may be below the agreed price.

Local market conditions also matter. The broad regional figures include coastal lifestyle markets, inland towns and agricultural centres with different employment bases and housing supply. A buyer should examine recent sales and listing times in the specific suburb rather than relying on a statewide decline.

What it means for you

• Sellers should prepare for a longer campaign and use recent settled sales when choosing a price.
• Buyers have more room to negotiate, but lower borrowing limits may outweigh recent price falls.
• Conditions vary widely, with south-east Queensland generally weakening more than some affordable inland areas.
• Anyone buying before selling should allow extra time and keep a financial buffer in case settlement dates do not align.