Queensland is one of the most positive property hubs in the nation, with population growth driving the market
A rising economy and affordability make the Sunshine State attractive to interstate migration.
“The 6.5% increase in total job volumes in the 2017 calendar year is the best that it’s produced in a long while,” says Simon Pressley, Propertyology managing director.
“Housing affordability and lifestyle attractions all the way up the east coast have always been there; however, Queensland has lacked the job growth for some years.”
Many migrants are making their way not to capital city Brisbane but other regions like Cairns, Townsville and Toowoomba.
“More than half of Queensland’s population choose to live in locations other than the state’s capital city. Propertyology analysis of a few buyer activity metrics showed clear signs of tightening occurring in regional Queensland, particularly in Cairns, Hervey Bay, Mackay and the Gold Coast,” Pressley says.
The wealth of projects in Cairns in particular has been creating immense opportunities in the job market. With demand rising, the limited housing supply will keep competition hot. The state government has also been increasing the city’s exposure by highlighting its tourism potential. “
After a decade of being in the property market doldrums, the broader outlook for Queensland property markets is one of the most positive of all Australian states right now,” Pressley says.
Brisbane flourishing in parts
Brisbane may be seeing good days, but not all pockets are feeling the positivity.
“As always, the markets were fragmented – some areas underperformed. Sixty-eight suburbs far exceeded the average level of growth, and almost a dozen Brisbane suburbs had double-digit price growth over the last year,” reports Michael Yardney, CEO of Metropole Property Strategists.
“While Brisbane house prices are growing, the unit market is still suffering from an oversupply of new apartments.”
The oversupply is mainly observed in the CBD and in the inner-ring suburbs, as new and off-the-plan apartments are released onto the market. Over 10,000 apartments are expected to be completed within the next year, exacerbating the existing stock issue.
“There is little prospect of capital growth or rental growth in Brisbane’s apartment market in the near future,” Yardney predicts.
“On the other hand there are great investment prospects for buying well-located houses in Brisbane’s inner- and middle-ring suburbs where capital growth is likely to continue to perform well.”
SUBURB TO WATCH
MANGO HILL: Steady upward tick for houses
Beloved by its residents, Mango Hill in Southeast Queensland’s Moreton Bay region continues to perform well, with the median house value passing the $500,000 mark following a price increase of 2.1% in the 12 months to May 2018.
By contrast, unit values fell slightly by 0.7% in the same period, taking the median price to under $350,000. The rental market remains stable, providing yields of 4.4% and 4.8% for houses and units respectively.
Mango Hill is a popular suburb with families. It is close to a train station, and residents are served by the Westfield Shopping Centre, supermarkets and restaurants. It also provides easy access to the Sunshine Coast and is around a 45-minute drive from the Brisbane CBD.
Location: Mango Hill is close to the ocean and commuting distance from the city
Amenities: A family-friendly suburb, it boasts many shopping and dining options