Reasons why SEQ Property Market is still Growing
Brisbane Property Market
Apart from the fact that the Brisbane Property Market is still growing, you can still find very Affordable Homes in Brisbane, with prices starting as low as $369,900! And there a still a few House and Land packages available for either under $400,000, or just above $400,000.
Why would anybody want to buy a home or an Investment Property in South East Queensland?
3 Reasons why SEQ Property Market is still Growing
- Affordability and Stability
Brisbane and the South East Queensland region is a more accessible investment location that has demonstrated superior resilience to the weakness experienced in other parts of the Australian housing market. Historically median house prices in Brisbane have been 75-85% of Sydney. With median house prices in Sydney still over $1m ($0.9m in Melbourne) Brisbane is forecast to outperform as median house prices are currently only 60% of Sydney at $0.6m.
Average House prices on the Gold Coast grew to $655,000 in 2018 and Brisbane’s average house price hit a new high of $675,000 in 2018, up from $505,000 since 2012. Following this trend, affordability is a key reason why SEQ will continue to be a favoured Property Investment destination.
With migration now at highest levels since 2007, the greater Brisbane region could see growth of 30% in next 3 years and close gap difference between Sydney and Brisbane.
More broadly, Queensland’s net interstate migration is improving, up from 6,000 people in 2014 to 17,430 in 2016-2017 and recently up to 24,000, between 2017 and 2018. Queensland’s annual population growth is now 83,000, up from 58,000 in 2015. Nearly 90% of Queensland’s population growth occurred in the south-east corner of the state.
Migration shifts from NSW into SEQ and Brisbane corridor is projected to inject 8.1billion dollars into these housing markets. People have been leaving NSW at a faster pace over the past few years favouring interstate migration to Queensland where house prices are half of Sydney.
Queensland has become the number-one destination for internal migration, taking over from Victoria in the latest ABS Census data, and our overseas migration is at its highest level in years, which means demand for accommodation will continue.
- Value and Opportunity
Queensland is enjoying a steady rate of job growth.
House price growth forecast for 2018-20 shows Brisbane as a standout at 13% growth. This is conservative as the figure includes apartments, old dwellings, units and townhouses. Detached H+L is the most in demand housing type and should see higher growth.
BIS Oxford Economics suggests that while some property markets around Australia will languish, Brisbane’s housing market is likely to be the best performing property market over the next 3 years jumping 13 per cent to a median of $620,000.
Since 2007, 11 of the 12 Local Government Areas that experienced the strongest house price growth, are in South East Queensland.
SOURCE: QLD Treasury, BIS Oxford, QLD Government Statistician’s Office, CoreLogic, Real Estate Institute of Queensland Market Monitor, Domain house price report.
If you take this information in consideration, it only makes sense that you want to invest in Real Estate Brisbane (Greater Brisbane area)
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