Brisbane’s property market, which is bearing the scars from the end of the first home buyer’s grant boost last year, marked falls in interstate and overseas migration and the summer floods, is among the weakest of all Australian state capitals.

While the headlines on property prices invariable fall on Melbourne or Sydney, there is a unique aspect to Queensland in that its economy and population are so spread out. Queensland is the most regionalized economy in Australia with a number of substantial regional cities: Bundaberg, Rockhampton, Mackay, Townsville, Cairns etc.

Brisbane and its surrounding areas are adjusting. January may mark a turnaround in Brisbane’s flagging property market, but there is no sign of conditions improving before then, according to leading economic forecaster BIS Shrapnel.

Their forecast reflects a sluggish start to the spring property season, as households are wary of taking on more debt and potential home buyers hold out for interest rate cuts.

Brisbane may not have major stock shortages and may still be suffering from the natural disasters earlier in the year but will benefit in due course as the state economy gathers pace as a result of the resources boom in that state. The level of building approvals in Queensland this year for new houses or refurbishments was the same as the level in the last six months of last year, indicating a stagnant market. It is expected that it will take another good 12 months of low construction for a deficiency in new dwellings to build up and for vacancy rates to drop and rental pressure to build before it starts having more significant affects on the market in 2012/13.

In the June quarter, according to the REIA, Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra and Hobart all failed to deliver any growth in house rentals  Apartment rents fell in four of the eight capital cities and flat-lined in two others.

On the Gold Coast, which has a surplus of everything from warehouses and offices to apartments and house-and-land packages, prices have shown negligible growth for the past four to five years. In some suburbs, prices have fallen. Many who bought apartments off the plan five years ago find they are today worth considerably less than they paid. In Surfers Paradise, the median price is less today than it was in 2006. That will not change any time soon.