REIQ research methodology

In order to measure recent performance of the Queensland property market, Queensland Market Monitor records the median sale price by locality and by local government area (LGA) state-wide where sufficient sales numbers are recorded.

Analysts regard the median sale price, defined as “the middle sale taken from all the sales in a locality throughout a specified period” as the most representative figure. Unlike other averages, which can be skewed by very high or very low sales, the median is generally reflective of current market activity.

The REIQ’s research data is based on sales records of the most recent reportable quarter held by the QLD Department of Environment and Resource Management’s Queensland Valuation and Sales database (QVAS).

Given the delays in sales records being made available by QVAS (three months on average) the REIQ initially publishes quarterly figures using approximately 60 to 70 per cent of sales contracted in the quarter.

Quarterly sales figures are generally an indication of the latest sales activity in an area. They reflect the types of properties that have sold over a three-month period and can therefore be quite volatile. Where possible, annotations are used to explain fluctuations in the sales data.

To provide a more macro or historical trend view of a suburb’s and LGA’s market performance, the annual median price is also provided, as are percentage changes over the last one and five years.

To ensure this data is as reflective of the overall market as possible, only suburbs that recorded a minimum of 25 sales for houses and unit/townhouses; or 20 sales for acreage and vacant land over the 12 month period are recorded.

On a quarterly basis, a minimum of 10 sales are required for metropolitan Brisbane. In regional areas, where there are generally fewer sales compared with metropolitan volumes, suburbs with a minimum of seven house or unit/townhouse sales or a minimum of five acreage or vacant land sales in a locality are included. A suburb with fewer sales numbers is generally regarded as having a sample size too small to be truly demonstrative.

Another point of difference with REIQ research is our use of contract date figures rather than the ‘settlement date’. In accruing quarterly results, some analysts use the date on which the property settled rather than the date that the parties signed a contract of sale.

In Queensland, there could be up to 60 or 90 days between the time a contract of sale is signed (the day on which the parties legally agree on the price the property will sell for) and the day on which the property settles. The REIQ believes that collating quarterly statistics based on settlement date figures does not most accurately reflect the state of the market in any given quarterly period.

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