So apart from Queensland’s wonderful weather, and in an era where literally every market is open to all investors from right across our wide brown land, why are a large proportion of prospective landlords looking to take a punt on Queensland?
- It’s affordable – CoreLogic numbers to the end of August show a median house price in Brisbane of $560,000, while in Sydney it’s $955,000 and Melbourne it’s $720,000.
- They dealt with Covid very well – To date, Queensland has a seen a total of just over 2000 cases of COVID 19 since the outbreak began. Compare that to NSW with almost 72,000 cases, or Victoria with almost 70,000 cases, and you can see in sobering statistics how well the Sunshine State has coped – and all while avoiding long term shutdowns.
- Money being poured into Infrastructure – . Billions are being spent around the State on roads, transport, energy projects and utilities. The southeast corner is even more infrastructure heavy with major transport and entertainment projects planned and underway. All this means jobs!
- Lifestyle and the ability to work remotely – The pandemic proved we can live where we wish, and still work just about anywhere. This means Brisbane, its coastlines and hinterlands are opening to all manner of professionals who can work from their home desk and commute interstate as needed (border closures permitting).
- THE 2032 OLYMPICS – While they’re still over a decade away, people are already talking about the impact the event will have. Again, this brings more infrastructure dollars and jobs to the region. But the Olympics will also shine a very bright international spotlight on Queensland and will undoubtedly have many overseas folk yearnings for a move to our shores.
The move is underway
The analysis shows that despite tight borders, the great shift north is already underway.
Australian Bureau of Statistics internal migration numbers to August revealed Queensland had already gained around 25,000 people from other states and territories during the previous 12 months, with most of those coming from Sydney… and the numbers are continuing to rise. These sorts of figures haven’t been seen in Queensland since the boom times of 2003.
And investors are taking notice. The Property Investment Professionals of Australia Investor Sentiment Survey 2021 found 58 per cent of investors believe that the Sunshine State offers the best property prospects over the next year – up from 36 per cent last year. Plus, the number of investors who see Brisbane as the state capital with the best investment potential is now at 54 per cent as compared with 36 per cent in 2020.
For starters, there are probably more out-of-state buyers snapping up real estate than even the locals realise.
What’s more, despite it being the most affordable of the three big cities, investors were spending more per property in Queensland ($590,000) than the average for all other capitals ($540,000).
So those looking to get a piece of the region are willing to invest more per asset.
What’s the takeaway?
To me, people choosing to invest in Queensland are making a sound decision based on the available data, however a word of caution is warranted. Selecting the right asset is key. Out-of-area investors must try to understand the fundamentals of the local market, or at the very least commission a local buyer’s agents to help them source a holding.
Choosing a property at the right price point, and which has the best fundamentals for growth, looks to be a good bet for the river city in the coming decade.
New Property Network are ideally placed to find the right investment for you, so please do get in touch.
