With Sydney and Melbourne slipping further out of reach for many homebuyers, more and more are turning to Queensland as the next best thing.
Angie Zigomanis, senior manager for residential property at BIS Oxford Economics, says Sydneysiders coming into the market to capitalise on the state’s comparatively low prices make up a growing proportion of the buyer demographic.
“We’re starting to see increased interstate migration flows out of NSW – that’s being reflected in first-time buyer numbers in Queensland,” he says.
While CoreLogic research suggests that growth in Brisbane remained low as of October 2017, investors ought to look at Queensland’s prospects from a long-term perspective.
“Queensland is emerging as a new investment hotspot driven by affordable pricing, strong interstate migration and high levels of government infrastructure spending,” says James Nihill, managing director of Patrick Leo.
The median house price in Brisbane as at November 2017 was $650,000, which would certainly appeal to owner-occupiers and investors from the southern states. The Brisbane CBD is thus predicted to see a 21% boom in population growth by 2036.
“The real opportunity emerges as housing in some key areas is undersupplied and will further tighten as the population continues to grow as forecast,” Nihill adds. The Ipswich house market is very likely to attract new buyers on a budget, as the median value came in at $350,000 in November 2017, with an average annual rental yield of 5.4% – a win-win situation for investors. Logan’s median house price was higher, at $400,000, but it offers considerable value for money as well.
Infrastructure spending boost
On the whole, Southeast Queensland has already recorded significant increases in population over the last three years.
“According to Urbis, demand will be driven into key suburbs within the Logan and Ipswich local government areas, with both regions potentially facing significant supply challenges when partnered with such strong population growth forecasts,” Nihill says.
The government has begun preparing for the anticipated wave of growth by investing in new facilities and updating existing ones. Major projects include the upgrade of the Brisbane Airport, the Cross River Rail, and investment in the health and education sectors.
“The forecast population growth in Southeast Queensland is supported by more than $25bn in infrastructure spending to accommodate the influx of new residents by 2036, as predicted by Urbane Homes,” Nihill reports.
“Southeast Queensland currently presents some compelling investment opportunities.”
SUBURB TO WATCH
BEAUDESERT:
The suburb of Beaudesert is located within the ‘golden triangle’ of Brisbane, the Gold Coast and Ipswich, and is a great option for owneroccupiers looking for affordability and seeking to live the semi-rural lifestyle.
The median house price just exceeds $330,000 after 5.7% growth, while the median unit price is under $240,000 following a 2.5% price boost. While growth has been gentle over the past fi ve years, it has been positive and consistent, suggesting that this market has long-term potential. Average yields are also high, at 5% and 6.6% for houses and units respectively.
The Bromelton inland port project is expected to generate many direct and indirect employment opportunities, according to Simon Pressley, managing director of Propertyology. This spells good news for Beaudesert’s future prospects.
Infrastructure: Projects in the Beaudesert area will create jobs and foster
Affordability: With the median property price under $350k, Beaudesert is perfect for those looking to save
