The real estate blog.

 Following on from my last post…I wanted to give you a better idea of the Queensland market…

Queensland has enjoyed the largest population growth of all Australian states and territories over the past decade, most of which has been centered on South East Queensland.

Almost half of last year’s population growth in Queensland was the result of interstate migration. Most of these were from NSW and Victoria and reflected the desire of individuals for a sea-change or tree-change in their lifestyle.

Australian real estate investing in South East Queensland is therefore growing and every indication is that it will continue to grow into the future with high demand and excellent capital growth.

South-east Queensland includes Brisbane which experienced the largest migratory population growth of over one thousand people every week. The second largest influx of new residents occurred on the Gold Coast which grew by 2.7 per cent last year.

Demographers estimate that another million people will choose to relocate to coastal areas over the next ten to fifteen years. Queensland is expected to capture many of these sea-changers, an excellent reason for Australian real estate investing in the state.

An interesting trend in residential property purchases in South East Queensland is the popularity of luxury resort-style accommodation like Sanctuary Cove on the Gold Coast. These homes are increasingly popular for Australian real estate investing with people moving from NSW who often choose to rent out these homes at premium rents until they are ready to retire to them.

These permanent accommodation resorts offer security, golf courses, swimming pools, tennis courts and other enjoyable facilities to help you enhance your lifestyle. During the past three years, property prices on Sanctuary Cove’s waterfront increased in value by 320 per cent from $500 to $1600 per square meter.

Although capital growth in South East Queensland has been very positive, rental returns have remained relatively low. However, this is mitigated by low vacancy rates in Brisbane of 2.4 per cent in the December quarter of 2006 and Gold Coast vacancy rates only slightly higher at 3.8 per cent during the same period.

According to the Real Estate Institute Queensland (REIQ), approximately 40 per cent of property purchases by interstate buyers are investment properties which provide average rental returns of between 3.5 and 5 per cent if located on the coast.

These less than attractive Australian real estate investing yields are offset by steady increases in median house prices. For example, the median house price in Brisbane increased by 1.4 per cent from the September to the December quarters last year, to $365,000. During the same period, median house prices on the Gold Coast rose by 3.3 per cent.

This year, Brisbane apartment prices rose 2.3 per cent during January to March and house prices increased by 0.5 per cent. Between the March and June quarters this year (2007), Brisbane’s median house price rose 9.5 per cent.

This reflects strong growth which is the result of stronger demand than available supply. In particular, prices in Queensland are lower than in NSW for comparable properties, therefore Australian real estate investing in South East Queensland is a highly attractive option for residents of NSW in particular.

According to the 2006 Census, Queensland is the fastest growing state in Australia with 1,500 people migrating to the state every week.

With a low unemployment rate of 3.5 per cent and a strong economy, Queensland is an excellent choice for Australian real estate investing.

All the best in your Investing…in Southern Queensland!

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