Queensland is likely to be the top destination for investors this year, as Sunshine Coast and Gold Coast record solid demand, according to the Real Estate Institute of Queensland (REIQ).
Antonia Mercorella, CEO of the REIQ, said Queensland's property market was able to remain "extremely stable" over the past year. In fact, prices in the state have increased by 6.1% over the final three months of 2020.
"Between record-low interest rates, low stock availability for sale, improvements in consumer sentiment and Queensland's unbeatable lifestyle, it's no surprise we've also seen broader increases in values month on month in 2021," she said. “Queensland is shaping up to be a strong bet for investors, with properties from the Gold Coast to the Sunshine Coast selling fast and on a solid foundation for capital growth in 2021.”
Brisbane reached a new record median house price of $725,000 last year, reflecting a 5.8% annual growth. House prices in the state capital increased further by 0.9% and 1.5% on a monthly basis in January and February, respectively. The latter represents the steepest rise since November 2007, when the monthly growth rate was 1.72%.
While conditions strengthen in Brisbane, regional markets continue to outperform the state capital. The Sunshine Coast remained the top market in the state — both houses and units in the region posted stellar growth over the last months of 2020, reporting gains of 7.7% and 8%, respectively.
Mercorella said regional markets benefit from the strong interstate migration, which continue to push prices up.
"Sunshine Coast, along with the Gold Coast, have been top destinations for internal migration for years now. And with minimal international migration at present, that internal movement is really benefiting our markets relative to other parts of the country," she said.
The strength of regional markets is also evident in the gains reported by individual Local Government Area (LGA). In fact, of the 56 LGAs, 52 posted annual gains, with Cloncurry (36.2%), Murweih (30.4%), and Isaac (25.0%), rising as top performers.
"When you consider Queensland's unique attributes and market characteristics combined with historically-low interest rates, surging consumer confidence, and billions of dollars in infrastructure investment, and the scene is set for some of the strongest property growth we’ve seen in a very long time," Mercorella said.
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