Brisbane continues to enjoy a comfortable position in the national market as a more affordable alternative to Sydney and Melbourne, attracting buyers who are seeking value for money. According to CoreLogic’s Home Value Index for November 2019, Brisbane’s median dwelling value came in at $497,491 – a great deal lower than Sydney’s $840,072 and Melbourne’s $666,883.
“Housing is more affordable in Queensland than in NSW and Victoria. For those buying in Queensland, there is more value for your money as houses are generally on larger blocks,” explains Dennis Wong, property data research specialist at Real Estate Investar.
Although the Sunshine State was briefly hampered by the mining downturn, it has recovered very well, with transport-centred infrastructure projects helping to stabilise the local economy and drive interest in different parts of the state. While there have been concerns about oversupply in Queensland, these fears have largely been assuaged by the considerable influx of interstate migrants.
“Queensland led the way in interstate arrivals, and population numbers have fuelled demand for housing, which has ultimately reduced the oversupply of stock in some areas,” says Wong.
This is very much reflected in the state’s rental market: vacancies tightened more quickly over the September 2019 quarter than in the previous year. In the Brisbane LGA, the vacancy rate was a very low 1.6%, as per the Queensland Market Monitor published by the Real Estate Institute of Queensland (REIQ) in December 2019. Meanwhile, the Greater Brisbane region recorded its lowest vacancy rate in more than 10 years at 1.7%.
The strong performance of the state is hardly limited to the metro, as several other coastal areas recorded tight vacancy rates as well, while the Gold Coast and Sunshine Coast reported healthy rates of 2–3%.
The pockets of Gladstone and Mackay were regarded as the top housing markets in the state – the former reported a quarter-on-quarter growth rate of 11.8% in the median sales price.
“REIQ data show that Queensland’s market remains less volatile than southern markets, providing relative stability for homeowners and investors,” says REIQ CEO Antonia Mercorella.
“Interest rates remain low and banks continue to loosen mortgage restrictions to enable more buyers to access home loans.”
SUBURB TO WATCH
THORNESIDE: Coastal suburb tells two tales
Situated on the seafront in the city of Redland, the suburb of Thorneside has a thriving house market, but units are seeing a decline in growth.
House values increased rapidly at a rate of 26.9% in the fi ve years to November 2019. On the fl ip side, unit prices plummeted by 7.7% in the last 12 months, dragging the median value down to just over $300,000.
For renters, however, units are in strong demand. Investors are able to get good bang for their buck, as the average rental return in this market is 6.2% from an average rent of $375 per week.
Location: Thorneside is located on the coast in the city of Redland
Units: While this suburb struggles with growth, rental yields are high
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