Southeast Queensland residential market prices are expected to stay steady at least in the short-term says a CB Richard Ellis report.

The Residential MarketView report highlights a sound long term outlook for the market given Queensland's strong long-term economic fundamentals. However, in the short-term CBRE Global Research and Consulting Manager Sam Reilly said price growthwould remain limited as the market corrected from the artificial stimulus provided by the boost to the First Home Owners Grant.

"While the extra grant was available there was a significant increase in owner occupier activity as buyers moved out of the rental market and purchased a home," Reilly said."The increased demand was not matched by developers and a supply shortage resulted in a period of strong price appreciation. However, the end of the boost in 2009 has seen a rapid decline in activity in the sub US$500,000 range as the impact of rising interest rates and a falling migration rate to Queensland begins to bite."

On the other hand, Reilly says that the lack of supply in the next 12 to 24 months would insulate the market somewhat and Queensland's strong long-term economic fundamentals should provide for longer term price growth.

The Gold Coast and the Sunshine Coast are two of the harder hit markets in the country with tourist rates dropping with the rising Australian dollar as well as slowing construction activity due to lower investor interest.