Do you want to buy a property in Queensland?
Well if you didn’t already, you might want to think about it after you’ve finished reading this.
Of course, everyone’s situation and needs are different when it comes to property investing, but it’s safe to say that the market is in a strong position for long term growth – making it a great opportunity to get in while you can.
In fact, over the past couple of months, we’ve seen a LOT of Melbourne and Sydney based investors looking to purchase in a more budget friendly location within the South East Queensland hub.
Interestingly though, at the same time, the median house price in Brisbane jumped ABOVE that of Melbourne at the beginning of 2024. This comes as a result of a number of factors, including supply shortages and domestic migration patterns over the past few years.
We know just saying this doesn’t really mean much – and it’s sure to not convince you of anything – so let’s dive a little deeper into some statistics.
So, why consider purchasing a property in Queensland?
Let’s break it down in more detail by splitting the conversation into four key points – Rental Numbers Supply, Population and Infrastructure…
- Rental Numbers
According to our lovely friends at the Real Estate Institute of Queensland (REIQ), a healthy percentage for rental vacancies (the percentage of properties that are uninhabited) is between 2.5% and 3.6%.
For over a year, though, rental vacancy rates across the Brisbane region have been hovering between 1% and 1.1% – a level that is deemed dangerously low by most experts – including the REIQ.
For property investors, the proof is in the pudding – it tends to lead to higher rental prices and therefore higher yield.
Why?
Keep reading!
- Supply
Arguably the biggest factor influencing rental prices and the ongoing housing crisis that is being faced across QLD (and the rest of Australia), is the fact that the supply of property when compared to the demand is far too low.
There is an unprecedented undersupply of property in the market. This is something that’s evident across both the buying landscape AND the rental market.
For a large portion of the general population, building a new home just seems too expensive. Rising labour and construction costs, longer wait times and management issues have impacted many of the big builders (which is why we work with our trusted builders for new build projects for our clients).
To show that undersupply though, last year, the number of approvals for new builds was at a 10 year low of 164,000, despite growing population.
On that idea, let’s talk a little more about…
- Population
The Australian Bureau of Statistics, tell us that we’ve continued to see some tremendous population growth in Queensland over the past few years – we all would have heard about the mass migration throughout the pandemic, but it’s continued, with the annual increase in 2023 alone being around 140 thousand.
Now this number includes both international and domestic migration – but domestically, for people who are more likely prepared to purchase in the market, Queensland’s numbers outweigh the rest of the country, by an incredible amount.
As you can see, the dark blue for Qld is far higher than anywhere else. With more than 30,000 people migrating from other states into Queensland in 2023, it places a huge amount of pressure on the property market’s demand, and as we can see from rental and supply numbers, the market is in DIRE need for more property – providing a highly rewarding opportunity for prospective property investors.
- Infrastructure
The last key thing that we’re seeing is impacting the property market in Queensland is a simple one – infrastructure.
The thing is, that doesn’t discount its impact. With new complexes, roads, hospitals and other facilities popping up all around SEQ, it’s bringing significant growth to communities that otherwise might not be in such high demand.
With the Olympics coming to Brisbane in 2032, and research by the State Government and KPMG suggesting an $8.1 Billion economic benefit, it only heightens this notion.
Another interesting infrastructure stat to note surrounds the use of cranes in large scale builds.
According to leading construction consultants Rider Levitt Bucknall, who release a quarterly update on large scale builds across Australia in the form of their RLB Crane Index – despite the cost of living pressures and the media storm surrounding property market problems, there have never been more cranes on the Gold Coast – only highlighting to us further the exciting period of growth.
So, as you can see, there’s no shortage of data out there to suggest Queensland is in a ripe position for property investment.
With people becoming more confident in spending money as interest rates continue to plateau, demand will only continue to grow.
So, if you want to chat about the prospect of investing in Queensland property as we head towards the end of 2024, you’re in the right place.
Give us a call on 0455 223 865, or get in contact HERE!
