Many areas have experienced a property boom since the start of the global pandemic. But while most markets have started to cool, Queensland continues to power on, delivering fairly consistent growth. The state’s population also continues to swell, with some predicting it will hit 6 million by 2027.
Here we take a closer look at the Sunshine State’s current property boom and exactly what is driving it. We also look ahead and try to predict how long the good times are likely to last. And, most importantly, we will consider what this means for property investors and the moves you should be making.
The state of the Queensland market
Over the last couple of years, we have seen a significant migration away from big cities and toward lifestyle locations. As home to many of the country’s most popular tourist destinations, Queensland has been the major beneficiary of this trend. In fact, statistics show that the state’s net migration rate more than doubled over the peak of the pandemic.
At the same time, existing Queensland residents are staying put, with homeowners and investors alike choosing to hold their properties. This has meant that the supply of new listings has been limited, further exacerbating the already competitive market. And, with more buyers competing for fewer properties, prices have skyrocketed.
The rental market has also been extremely tight, with vacancy rates hitting record lows in many areas. As a result, most properties are being leased within a matter of days, often above the advertised rate.
While most parts of the state have seen strong results, the South East corner has been particularly active. This has been led by perennially popular areas, like the Gold and Sunshine Coasts, where prices have increased by 30% or more. However, many less lauded locations, like Ipswich and Logan, have also achieved over 10% growth over the last 12 months.
To help home the booming population, the Queensland State Government has also identified a few key growth corridors. Residential land is being regularly released in areas like Greater Flagstone and Ripley Valley, where significant development is planned.
How long will the good times last?
Most experts expect the Queensland property market, and particularly South East Queensland, to continue performing well for the foreseeable future. This is largely based on the forecast population increase, which is expected to pick up pace as international visitors return. It also acknowledges the ongoing supply issues, with new listing levels still well down on the 5-year average.
Preparations for the 2032 Olympics in Brisbane will also help increase demand for property over the coming decade. Thousands of workers will be required to complete all the planned upgrades, most of whom will be relocating from interstate. The improved infrastructure will also add to the liveability of the region, drawing in even more new residents.
What does this mean for investors?
With all the above in mind, it is easy to see why so many experienced property investors are targeting Queensland. Despite recent growth, property there remains relatively affordable, particularly when compared to the largest capitals. There is also still plenty of room for further growth and a range of different investment opportunities on offer.
The strength of the rental market is also great news for investors. Vacancy rates are expected to remain low for at least the next few years, making it easier to find tenants. The competition for quality rental properties should also put upward pressure on rents, further improving rental yields.
That said, it is still important to do your research when investing in the Queensland property market. Certain areas are performing better than others, so careful analysis is required to maximise your returns. You also want to make sure you are choosing a property that suits your investment goals and strategy.
Want to discuss this further?
If you are considering investing in Queensland, or just want more information on the property boom, call Search Party Property. We specialise in helping everyday Australians find high-performing investment properties and can help optimise their investment approach. If you are ready to make a move, set up your free investor consultation session today.