GOLD COAST LIGHT RAIL EXTENDS BEYOND BURLEIGH
It’s no secret to anyone remotely interested in Australian property that Queensland is experiencing the highest growth in domestic migration than any other state. The Sunshine State isn’t just beating the other states, it’s an overwhelming landslide, as “metro-movers” are leaving New South Wales and Victoria in mass exodus.
In 2020 alone, Queensland welcomed 30,000 new residents to the Sunshine State from interstate, while Victoria and New South Wales both experienced net population losses of 12,700 and 18,800, respectively. (Source: ‘We haven’t looked back’: Qld’s biggest population boom in 16 years. Brisbane Times)
“It comes down to two factors: lifestyle and affordability,” says Matt Sully, National Project Manager for APFG. “While retiring on Gold Coast used to be the dream, the phenomenal weather, beaches, and mix of cityscapes and green areas are drawing a younger crowd and families. The pandemic and lockdowns of last year only heightened the need to get out of the cities and go north.”
APFG’s portfolio of new-build properties across QLD, includes options for luxury apartments, house & land, co-living and NDIS. “For the same prices as residences in Melbourne or Sydney, buyers and investors have options in Gold Coast and Brisbane suburbs where the homes are not only larger, newer and with modern designs, but if used as an investment, would generate significant weekly cash flow, and certainly a much greater cash flow than a Sydney or Melbourne property.”
The migration statistics become even more astounding, when you consider what is happening within the state to accommodate the astronomical influx.
Construction booming for new houses & apartments
The government assistance with HomeBuilder and Jobkeeper programs pushed new home sales to record numbers, with builders seeing 2020 new home requests surging by 80%. The impact wasn’t just for construction and builders, with relocation companies assisting to a 400% increase in requests for interstate transfer to QLD. (Source: Relocating to Queensland? Get in line, Sunshine state builders record four-fold rise in new home enquiries, ABC Gold Coast).
Where apartments on the Gold Coast used to be limited to a handful of high-rises, there are at least 20 new apartment projects either currently in construction or planned for the region, adding upwards of 3500 new dwellings. Apartment sales increased a whopping 97% in the final quarter of 2020.
The capital city of Brisbane is no different, also adding new major development projects to its ever-changing skyline, for both residential and commercial use.
However, despite record-breaking booms in construction, “The demand still far outweighs the supply,” says Sully. “Properties are being sold, even before they are finished and go on the market. We are starting wait lists for new stock releases.”
Record-low vacancy rates across the state
Over the last year, rental vacancy rates have continued to drop to record lows across Brisbane, the Gold Coast and the Sunshine Coast.
The newest vacancy report released by the Real Estate Institute of Queensland (REIQ), showed that 70.2% of the state’s rental vacancies remain under 1.0%, with the largest scarcity recorded in Brisbane’s inner city, with rates dropping 0.5% over the quarter.
The overwhelming migration of the cashed-up home seekers — mainly from Melbourne and Sydney — is driving prices up, pushing locals out of the rental market by offering agents $100 more than the weekly asking price.
Low supply + high demand = higher prices
It’s basic economics that most property buyers could predict, that Queensland housing prices are on the rise with no signs of slowing down.
By the end of 2020, property prices increased across nearly every region of Queensland, with an average growth of 6.1%.
Stand out favourites among the region were Gold Coast, where media house prices rose dramatically to $792,000, up 18.2%, and Sunshine Coast hitting $825,000, a 23.1% spike.
As of last quarter, Brisbane housing prices increased 13.2%, performing better than any other capital city, with expected surges through 2022 and 2023, and gradual growth all the way up to 2032, when the city hosts the Olympic Games. Median housing prices are expected to hit $1million before 2030.
Other suburbs that will continue the trend, adding confidence for property investors over the next decade include Redcliffe, Logan, Moreton Bay and Ipswich.
For apartments, off-the-plan buyers from just 2-3 years ago are sitting on gold mines across the Gold Coast. New buyers are willing to pay $15,000 to $20,000 per square metre, for luxury style and beachfront locations.
With the staggering competition for rental properties, investment property owners and tenants are seeing rental increases between $50 – $100 per week. With REIQ’s last report, several regions across the state recorded double-digit increases, with Central Queensland rents growing 15.3%, Sunshine Coast rents rising 15%and Gold Coast rents climbing 10.9%. (Source: Rents Rocket in QLD Regions, REIQ).
Talk to an APFG Property Manager today
To take advantage of the rising opportunities for the Queensland property market, talk to our team today. We can discuss the 1.5% lowest investor rate, and our extensive list of cash-flow positive investment options across the state.