Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Why Queensland is about to run hot

By Tony Brasier
18 March 2014 | 1 minute read

The south east Queensland property market has all the characteristics of a market in the process of strengthening significantly and may prove to have the strongest national growth of all the major regions in 2014.

 

Blogger: Tony Brasier, managing director, PRDnationwide

Advertisement
Advertisement

Since the middle of 2013 we have seen the Sydney market bloom, and more recently, Melbourne property prices are beginning to climb steeply. The increase in price in the southern states has temporarily forced many investors out, effectively reducing the number of buyers who are willing to compete, can afford the price levels and cope with the reduction in choice in those markets.

Investors are casting their eyes further north into south east Queensland where prices have been depressed for five years and choice remains abundant.

Agents in Queensland are reporting falling stock levels and slowly increasing prices due to the increased numbers of buyers heading north.

Queensland’s sustained population growth will also have a renewed impact on the market going forward, with almost 90,000 additional residents moving into the state in the past 12 months.

The median prices in the various markets confirm the current appeal of the south east Queensland market.

Throw into the mix a rental vacancy rate of less than three per cent and an expanding population and you can understand why the region is shaping as an attractive option for investors.

Compare the median prices of the major east coast cities;

City Median House Price Median Apartment Price Vacancy Rate
       
Sydney $760,000 $540,000 2.1%
Melbourne $625,000 $480,000 3.4%
Brisbane $470,000 $380,000 2.8%

 

In addition to the relativity of prices, the increasing number of mainland Chinese tourists having a portion of their holidays between the Gold and Sunshine Coasts means it is inevitable that investor interest from that source will only increase over the next two to three years.

The average Chinese investor is typically looking to purchase up to $600,000. The continuing climbing prices in Sydney and Melbourne should encourage these investors to focus on south east Queensland where they can achieve greater value for money and at the same time, capitalise on the lifestyle options the region has to offer. Sell smarter.

It is interesting to note that Canada has just announced the end to their Investor Immigration Program, which attracted 130,000 new residents and investors to Canada over the past 10 years.

Under this program Chinese nationals with a net worth of CAD$1.6 million and were willing to loan the government $800,000 so they could purchase property and gain residency status in Canada. This having just come to an end could likely mean much more attention paid to Australia including increased property investment on the eastern seaboard.

So let’s recap, why is south east Queensland likely to boom over the next two years?

A combination of readily available, well-priced land housing and apartments, mixed with increasing demand and steady population growth sets a strong platform for investment.

Low vacancy rates means investors can achieve great rental yields, and with markets in the southern states somewhat stifled by price and availability of stock, there is an influx of investors from Victoria and New South Wales looking for choice and better returns.

Finally, Chinese investors are zeroing in on Queensland as not only a tourist destination, but a location offering much as a place to live, work and invest. Internationally, south east Queensland is being heavily promoted and interest is peaking thanks to targeted campaigns to lobby Chinese investment in the region.

So Queenslanders get ready because those hot summer temperatures are set to be replaced by an even hotter property market.

Why Queensland is about to run hot
Tony Brasier
lawyersweekly logo

Tags:

ABOUT THE AUTHOR


Tony Brasier

Tony Brasier

Tony Brasier is the chairman and managing director of PRDnationwide, a wholly-owned subsidiary of Colliers International, where he is responsible for the growth and strategic direction of the Australian business. He was the CEO and chairman of Colliers International Holdings (Australia) Limited between 1999 and 2009.

Do you have an industry update?

top suburbs

12 month growth
Travancore
49.78%
Timboon
49.57%
Dolphin Point
49.51%
Nyah West
49.42%
Preston Beach
49.29%
Newington
48.97%
Killcare Heights
48.89%
Wundowie
48.77%
Homebush
48.44%
Glenside
48.28%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.