Significant infrastructure investments and greater affordability means Queensland’s real estate market will see strong activity in 2017, according to one of Australia’s leading real estate groups.
Raine & Horne says the biggest infrastructure project in the state this year will be the $21 billion Adani Carmichael coal mine in central Queensland, which includes rail and port facilities.
Other key infrastructure projects are the $3 billion Queen’s Wharf precinct in the Brisbane CBD, Westfield’s $1 billion development of Coomera Town Centre and the $200 million extension of Gold Coast Airport.
Raine & Horne Queensland general manager Steve Worrad says preparations for the 2018 Commonwealth Games will continue through the year and will also drive demand for apartments.
“Combined with low interest rates and skyrocketing prices in Sydney and Melbourne, we have more buyers and investors focused on real estate opportunities in Queensland,” Mr Worrad said.
The group also expects real estate values in northern Queensland to get a boost from the construction of the Red River zinc mine at Thalanga and the $13.1 billion ethanol project at Pentland, 100km south-west of Charters Towers.
While the mining downturn has impacted central Queensland, real estate affordability makes the region an area to watch in 2017, Raine & Horne said, adding that the median house price in Gladstone, for example, is just $275,000.
The group said massive investment in Gold Coast infrastructure will underpin real estate values in Burleigh Heads, Mermaid Beach, Varsity Lakes and Miami.
It added that the City of Gold Coast council has improved its approach to the approval of smaller residential developments, which has increased the supply of affordable real estate.
It also made the point that the Brisbane market is price driven, which means buyers often venture beyond preferred areas and boundaries.
Clearance rates for onsite and in-room auctions stands at 42 per cent, increasing to 68 per cent in the post-auction phase.
“Whether it’s Greater Brisbane, Logan or Moreton Bay, the focus on price means the same bidders can turn up at an auction 20 kilometres away from the last auction they attended,” Raine & Horne said.