QUEENSLAND PROPERTY MARKET BOOMING IN THE SOUTHEAST
This blog contains extracts from a recent article by Craig Gibson the highly respected Australian Real Estate and Home Improvement Writer – August 2019.
This is the first of a regular series of Real Estate and Lifestyle Blogs being produced by our local writers from Redlands Coast Realty.
Thinking of investing in the regional Queensland property market?
South East Queensland (SEQ) is a biogeographical, political, and administrative region of the state of Queensland. The region has a large population of over three million people out of the state’s population of 4.6 million.
You’d be forgiven for being cautious, given the travails of mining towns in the state, where headlines as recently as 2016 screamed: ‘Property investors lose 50pc in QLD mining towns’ and worse.
Fast forward three years and there is optimism in the tropical air, as headlines speak for themselves: ‘Regional QLD property markets back in business with buyers’. Back in business indeed, with a host of regional centres recording a surge in demand.
But where exactly are the best regional investment areas and why are they performing?
To be clear, not all regional centres and towns in the Sunshine state are booming – but there are signs of recovery, especially in coal mining towns which are reviving as the coal price climbs. But this is only half the story – Queensland is the number one destination for inter-state migrants, with the subtropical climate and laid-back lifestyle proving to be strong drawcards.
Queensland’s population has also grown steadily in recent years, but it is projected to climb steeply in the future to reach 7.21 million by 2036.
After having gone through the mining boom slump, South East Queensland’s property market is now well into recovery.
Median house prices aren’t skyrocketing, however, buying demand and rental yield are remaining consistent and relatively high. This affordable and steady market has seen many Australians move interstate from more expensive and volatile cities. Brisbane, the Gold Coast and the Sunshine Coast, in particular, are gaining popularity amongst first-home buyers and investors alike. According to analysts, this steady trend is predicted to continue for the next couple of years.
Stretching across over 22,000 square kilometres of coastal land, South East Queensland is the major administrative and commercial centre of the state, and the heart of Queensland’s tourism industry. The region is home to over three million residents and encompasses three of Australia’s primary summer holiday destinations – Brisbane, the Gold Coast and the Sunshine Coast.
How can we expect the regional property market to change in the next year?
Prospects look good for regional markets across Queensland, which now look to be firmly in recovery mode. CoreLogic’s Home Value Index has regional markets outperforming the combined capital cities, with a total return of 7.9 per cent – while metro regions record returns of 4.1 per cent.
According to professional services firm Deloitte, Queensland’s economy is set for an annual growth of 3.1 percent until 2021. Compared to a national average of 2.7 percent, this bodes well for the Sunshine State over the medium term.
Download the Deloitte Positive Prospects Queensland Business Outlook
We hope you enjoy this and many more articles to come.
Editor, Redlands Coast Realty