It’s a good time to be an investor in the Sunshine State. The Housing Industry Association has named Queensland as the property market’s top-performing state for the first time since 2007. HIA economist Tom Devitt says that picking one standout jurisdiction in Australia’s broader housing boom is difficult, but the bulk of interstate migration has been directed to Queensland. “Even in this strong market, Queensland has made the most of its opportunities,” he said. HIA’s Housing Scorecard ranks the performance of each state across 13 key indicators, factoring in the level of renovations, construction migration and market activity. It says the high level of interstate migration proved to be the decisive factor that elevated Queensland above the rest. “Other states have also seen a rise in interstate migration, but none as strong as Queensland,” Devitt says. He says this combination of strong population growth, migration trends, high levels of government stimulus and low interest rates has driven demand for new housing in Queensland to its current highs.
Qld Property Values Up 19%
Strong price growth on the Gold Coast has helped to generate above-average uplift in property values across Regional Queensland. CoreLogic says residential real estate continues to underpin Australia’s wealth, with the value of residential real estate continuing to climb in July. The combined value of residential real estate nationwide has increased to $8.8 trillion across 10.6 million dwellings. Over the past 12 months values increased 16% – the highest annual growth rate since February 2004. But Regional Queensland values rose 19%, ahead of Victoria (18%), South Australia (13%) and Western Australia (6%). Gold Coast growth in both the housing and apartment markets has helped to elevate the Regional Queensland average: 26 Gold Coast suburbs have recorded median price growth above 12% in the past year. Biggera Waters, Broadbeach Waters and Mermaid Waters are among the locations to grow 15-20% over 12 months.
Quote of the Week
“In a normal market our happiness rate would be around 40% and we’re a long way above that because we’re in a really hyper hot market.”
Mark Armstrong, co-founder of RateMyAgent
Two-thirds Of Vendors Happy
With property prices continuing to rise in the face of the pandemic, it’s no real surprise that vendors are happier than ever. A new survey reveals two-thirds of sellers are happy with the price they achieved when they sold during the first six months of this year. To put this in perspective, the RateMyAgent Price Expectation Report shows satisfaction levels were only 45% during the same period in 2020. The results were uniform across Australia according to RateMyAgent’s Mark Armstrong, with sellers in regional and metropolitan markets equally satisfied with the prices they achieved this year. The increase in satisfaction follows news that national dwelling values increased by 16.1% in the 12 months to July 2021, which according to CoreLogic is the fastest pace of annual price growth in Australia since February 2004. The most satisfied sellers this year were in Wimmera in Victoria with a happiness rating of 78%, followed by Hobart with 74% and South-east Tasmania with 71%
75% Expect Growth In Next Year
It’s not just owner-occupiers who are feeling happy about the property market, with investors also overwhelmingly positive about future price growth prospects. The latest Australian Property Investor magazine Quarterly Investor Sentiment Survey shows that 68% of investors are positive about the market and three[1]quarters expect prices to grow in the next 12 months. While price increases from the current national boom have a few concerned, it isn’t enough to deter the 52% of investors who still want to buy. Affordability is top of mind for most investors, followed by concerns about growth potential and whether tenants will find it difficult to pay rent during future lockdowns. A third of investors say they are planning to buy within the next 12 months, with Queensland the state most would like to buy in. Many say they have already reduced their costs by taking advantage of the current low interest rates to refinance their loans.
