This year, Queensland has been spared some devastation caused by the Covid pandemic, paving the way for a strong market.
According to Core Logic, Brisbane housing has grown almost $115,000 this year, an increase of over $3,300 a week over eight months, and there is little sign of it slowing down.
Regional Queensland houses are up 15.6% in 2021, and regional Queensland units are up 14.6%.
So what does all this mean for what’s to come in the warmer months?
Brisbane’s median home value jumped up an even 2% in August, making it one of the strongest performing capital cities.
Houses in the nation’s capital are edging towards the $700,000 median barrier, whilst units seem to be picking up the pace too.
Based on SQM Research new listings dropped -9.5% for the month, mostly due to the seller’s hesitation during Covid. The supply of homes on the market added up to -10.3%, indicating that consumer demand is higher than supply.
Throughout August, auction rates sat comfortably above 70%, compared to below 50% a year ago. Therefore, things appear to be very healthy in terms of sales.
Those plans are likely creating a ‘Halo Effect’ for the strong market, as per Westpac’s latest Housing Pulse report.
Queensland should be able to eliminate Covid before the spring buying season begins.
Whilst Queensland’s economy is worth more than $360b, over the past two decades. It has usually outperformed the national average when it comes to economic growth. The strong growth in commerce and employment is attributable to a variety of trends. Some of these including population growth, the boom in resource investments, and the growth of LNG exports. Queensland was in a good position going into Covid, and this is allowing the growth that so many forecasted.
With more affordable housing and a renowned cosmopolitan outdoor lifestyle, Brisbane’s property market outlook is currently more favorable than any other Australian capital city.
Brisbane is set to boom – however, Toowoomba is already a standout performer!
For a number of years now, it’s been anticipated that Brisbane will see a boom in homebuyers. This has been accelerated by the pandemic. Queensland’s capital has seen the sharpest monthly increase in house prices since 2007 in February 2021.
But perhaps the biggest drawcard of regional Queensland is Toowoomba. Thanks to multiple infrastructure projects, affordable house prices for investors and newcomers alike, and a laid-back lifestyle with all the amenities you need, Money magazine named it a standout location for places to buy property in 2021.
If you’re after a family friendly, relaxed living less than 2 hours’ drive from Brisbane CBD, Toowoomba may be the region that you want to consider.
How to identify an area with high growth potential.
Looking for the secret ingredient that will help identify areas in regional Queensland with high growth potential?
The secret is to find a location with a whole range of positive factors including:
- High population growth
- A diverse and resilient local economy
- Major infrastructure developments in the local area
- Low supply but high demand
You can also make use of other key indicators and property data to inform your overall property investment strategy. For a good idea of how local markets are performing. These include:
- Property values, where rising house prices could indicate a positive long-term trend
- Clearance rates, where high percentages indicate a ‘hot’ market
- Days on market (DOM), or how long a property takes to sell, can help you identify a booming/cooling market – depending on the timeframe and local market
- Rental yields, which details how much income/rent a property could fetch over a timeframe, as a proportion of its value.
- Vacancy rates, with high rates a sign there is reduced tenant demand or a glut of rental properties on the market.
Whether you’re new to the market or looking for experienced help, our team of skilled investors is here to assist you. With years of investing in properties under our belts, we can help you make strategic decisions, navigate home loan rates, and find the best investment opportunities for your budget.