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Creation Date: Mon, 20 Feb 2012 GMT

QLD property market recovers from floods

Real Estate Institute of Queensland figures show December median house prices in southeast Queensland remained steady.

The strong resources sector is driving demand and price growth in central Queensland and the Darling Downs region in the state's southeast, it says.

Over the December quarter, the median house price in Brisbane recorded a slight fall of 0.2 per cent to $499,000 - the city's lowest drop since September 2010.

REIQ chief Anton Kardash said the state's improving results showed it was beginning to recover from a devastating 2011.

"Last year was a very tough one in Queensland, with the series of natural disasters having a drastic impact on our economy as well as on confidence levels overall," he said.

"With the first anniversary of these events now passed, it certainly appears that Queenslanders are feeling more optimistic about the future and this is starting to have a positive effect on our property market."

The state's mining regions saw the biggest gains, with Gladstone's median house price increasing 8.6 per cent over the December quarter to $478,000 - a jump of 15.6 per cent over the year.

Mackay, Rockhampton and Toowoomba also posted strong price growth.

At least 35 people died and thousands of homes were destroyed in last summer's floods, which covered more than 70 per cent of the state.

In February 2011, Cyclone Yasi devastated north Queensland, resulting in one death and billions of dollars in damage.

SOURCE: http://finance.ninemsn.com.au/newsbusiness/aap/8421961/qld-property-market-recovers-from-floods