Rising house prices in Queensland are prompting more investors to consider units and apartments over houses.
With rising interest rates and median house prices at levels of up to 20-60% more than units, many property buyers are investing in more affordable apartments to remain in the market, according to the Real Estate Institute of Queensland (REIQ).
New REIQ data reveals the unit and townhouse section of the market is continuing to appeal to buyers across the State, with unit values across several regions recording capital growth rates equal to, or greater than, the housing market in the same area.
"Declining housing affordability means more… [property] buyers have to think outside the square of traditional home ownership just to get a foothold in the property market,” says REIQ chairman Peter McGrath.
McGrath says Queensland’s growing population is putting pressure on supply levels across the state, with more than 160,000 new residents moving to the sunshine state from interstate in the five years to June 2007.
"This sustained population growth, coupled with a very solid economy, ensures the state's residential unit and townhouse market is likely to continue to perform very well," McGrath says.
Braxton Chase CEO Andrew Donnelly believes these strong levels of migration, combined with a large amount of infrastructure and urban renewal projects, will continue to power underlying demand in and around Brisbane.
“Whilst worries about the drought and water shortages continue to loom over the state’s busy south-east corner, developers can’t build new dwellings fast enough to meet demand in the western corridor between Brisbane and Ipswich,” Donnelly says.
“In inner Brisbane, riverfront property continues to be a hot – and in many cases, a relatively affordable – commodity. Property value growth in Brisbane could very well be the highest in Australia this year.”
