Queensland’s property market has been tipped to outperform many others in 2023. Canstar’s annual Rising Stars Report, powered by Hotspotting, predicts Regional Queensland will be the best performing regional market in 2023 followed by Regional Western Australia. In terms of capital cities, the report has used a series of forward-looking indicators to rank Adelaide on top followed by Brisbane. The report says Regional Queensland scored well across all five key metrics used. Hotspotting analyst Terry Ryder says as Australia’s leading recipient of population growth from internal migration, Regional Queensland continues to benefit from the Exodus to Affordable Lifestyle trend. Some of those areas predicted to perform well in Regional Queensland include Bundaberg, Caloundra, Rockhampton and Toowoomba, as well as Gold Coast locations like Nerang. “More than half of the locations across regional Queensland have rising sales activity at a time when nationally markets are weak,” the report says. “The population trends favour Queensland, bringing growth to many regional property markets.”
Interstate Buyers Target Gold Coast
Interstate buyers are keen on the Gold Coast property market, with a new report showing it tops buying lists. According to analysis of data from Little Hinges, the Gold Coast accounted for 44% of the more than 300,000 virtual inspections potential buyers conducted in October. It shows buyers from New South Wales and Victoria are showing the biggest interest in the Gold Coast. About a fifth of people virtually inspecting property on the Gold Coast are from NSW and 15% are from Victoria. Little Hinges chief marketing officer Mike York says according to CoreLogic, dwelling values on the Gold Coast fell overall in the October quarter, which makes it a more affordable option for many compared with Sydney and Melbourne prices. He says overseas buyers are also keen on Queensland. Of the 7.7% of international buyers who are interested in moving to Queensland, 35% are from New Zealand, 10% from the United States and 5% each from the UK and Singapore.
Quote of the Week
“We still have a landlord’s market across Australia and in every capital city. We’re nowhere near providing alleviated conditions for tenants. While we see that small seasonal lift in rentals, we also see a higher level of people looking for a rental. It is a drop in the ocean compared to what we need.”
Domain chief of research Dr Nicola Powell
Investors Slam AHURI Claims
Leading property bodies have raised doubts over Federal Government research which says rental reforms have no effect on investment activity. The Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) have labelled it a “misguided” and “grossly inaccurate” portrayal of the rental market. The groups are referring to a study by the Australian Housing and Urban Research Institute on what factors influence investors’ decisions. Investors exiting the markets have caused the chronic rental shortage. It used rental bond data which was collated after previous rental reforms in NSW and Victoria and a survey of investors to come up with its findings. PIPA chair Nicola McDougall says its own survey of 1,618 investors in August shows 19% of investors intend to sell and the top four reasons given were: the new Queensland land tax (subsequently scrapped), changing tenancy legislation, the threat of losing control because of new or potential government legislation, and the threat of government enforced rental freezes.
Little Relief In Sight For Tenants
There is still little relief in sight for renters, with new figures showing the national vacancy rate remained at a record low of 0.8% in November. According to Domain data it was 1.5% at the same time last year and chief of research Nicola Powell warns it will not improve anytime soon. Despite some minor seasonal increases in vacancy rates, Powell says there are only 20,320 vacant rental properties, 47% less than at the same time last year. “We still have a landlord’s market across Australia and in every capital city,” she says. “We’re nowhere near providing alleviated conditions for tenants. While we see that small seasonal lift in rentals, we also see a higher level of people looking for a rental. It is a drop in the ocean compared to what we need.” In November, Melbourne vacancies dropped to 1.1%, Sydney was 1.1%, Perth and Adelaide had the lowest vacancy rate of 0.3%, Hobart 0.4% and Canberra 1.2%.
Banks Pay More To Give You Money
Banks are paying customers for the privilege to lend them money, with many now offering larger cashback incentives for new business. According to Domain, more than 20 different banks and lenders are now offering cash to mortgage holders who will refinance with them. These include Westpac, St George, HSBC, Commonwealth Bank, Bankwest and AMP. The number of home-owners refinancing has been on the increase since the Reserve Bank of Australia started lifting interest rates in May this year. Natalie Abel of Domain Home Loans says most banks require a minimum refinance amount of $250,000 and a Loan to Value ratio below 80%. Abel says while a lump sum cash payment may be enticing, borrowers should ensure they check the fine print first. And she says borrowers will have to wait a little while for the cash to lob in their accounts. “The bank wants to see you make your first loan repayment, forking out the refinance cash bank amount around six weeks after settlement,” she says
