Regional or metropolitan? Houses or units? What are the pros and cons of investing in the Sunshine State? If you’re considering investing in Queensland, here are seven things you need to know first.
A glance at Australia’s north-eastern corner reveals an incredibly diverse state with influences and market trends like no other in the country.
While Queensland’s city of Brisbane has long been considered the ‘little cousin’ to Sydney and Melbourne, new intrigue in its capital growth potential has bloomed since unaffordability became a major issue across the country.
Queensland is finally being recognised as one of the best areas to invest in at the moment, for multiple reasons. For investors, it’s also one of the easiest places to buy property with strong potential in today’s difficult lending climate. Let’s find out why.
Investing in Queensland is a bounty of unique opportunity
If you’re thinking of investing in Queensland, you’ve probably noticed that the Sunshine State is quite different to other major cities. For one, Queensland is the only state to have a second major city just 100km away – so major, that it’s notable as a second capital. Even Australia’s leading property data analyst CoreLogic includes the Gold Coast as part of Brisbane in its property value calculations.
But it’s this southeast corner of the state that makes investing in Queensland such a unique venture. Essentially, it offers the complete package: a major white-collar metropolis within easy commute of a sea-change city that boasts some of the world’s most beautiful beaches. The corridor between the two cities is affordable and highly attractive to young families, and in fact Pimpama and Coomera recorded some of the largest and fastest population growths in 2016.
So when you’re considering where to buy, remember that Queensland offers two major metropolitan locations joined by a corridor that’s growing faster than anywhere in Australia. All for affordable prices.
Dwellings are excellent value for money
Historically, Brisbane’s growth may not have made as many headlines as Sydney and Melbourne, but it has been steady, and hasn’t given any impression of going anywhere but up. The biggest tick factor for investors is its comparative affordability and the good capital value it represents.
Brisbane buyers spend an average $708,000 to enter the metropolitan house market; a stark contrast to Sydney, where the average dwelling price is $1.6 million and values are still correcting after hitting the market peak in 2017. This makes Brisbane a much more affordable city market to break into – an enormous feat in a time when so many restrictive measures are in place to dampen investor activity.
Queensland has the lowest stamp duty in Australia
Adding to the affordability factor are the lower costs involved in purchasing here. Investors buying in Queensland will save a lot of money in stamp duty fees compared to other states and territories. To give you an idea, purchasing a $550,000 investment home in Queensland will cost you $12,200 in stamp duty. In New South Wales, you’ll pay $20,000; in South Australia and Victoria it will set you back $28,000 and $26,000 respectively.
Experts are expecting big things for Brisbane and Gold Coast growth
Real estate experts like John McGrath are predicting Brisbane dwelling prices will reach double income growth figures over the coming years. With prices remaining affordable, market confidence is strong and further improvements in employment and interstate migration – ie, sellers who profited from the Sydney property boom looking for a sea change, or those who can’t afford the prices in other cities – are expected to propel capital growth faster than we’ve seen in previous years.
Regional areas have been unsure, but the tide is turning
Queensland’s single-economy regional areas were hard-hit during the mining downturn, making them an uncertain investment. However, the future is not all bleak, with many of these regional areas beginning to see a turnaround after values bottomed out.
Satellite cities such as Ipswich (44km south-west of Brisbane) are swelling in population and size, proving that people are willing to commute to cities while living in greenfield suburbs. Other noteworthy hubs such as Townsville, Cairns and the beachside Sunshine Coast are also expected to see some strong growth in the coming years. However, with Brisbane and the Gold Coast’s entry-level prices still so affordable, investors should always weigh up the returns of outlying properties against the demand for metropolitan dwellings.
Houses and units have equal opportunity here
Just as in other cities, investors have been cautioned against inner-city units in Brisbane due to oversupply and the possibility of falling values. However, new construction approvals are slowing down, and the warning hasn’t extended further south, where sea-change buyers and renters are buying up Gold Coast unit stock without qualm.
It’s also clear that buyers and renters are happily seeking house-and-land package turnkey properties, with Brisbane’s new masterplanned North Lakes development recording the second-highest number of sales according to Corelogic’s ‘Best of the Best’ 2017 report.
Brisbane’s population is expected to grow by over 600,000 in the next 13 years
With over 280,000 new homes needed to accommodate growing demand, the anticipated population explosion is an exciting one that will have a ripple effect across the southeast corner. New infrastructure, job opportunities, spotlight events like the Commonwealth Games, and the city/coastal lifestyle offered by Brisbane and the Gold Coast are driving more out-priced buyers and renters to seek a better life up north – all good news for those looking at investing in Queensland today.
If you’ve considered investing in Queensland but you need help finding the right property that fits your strategy, or you need a helping hand with finance advice or planning, our Hyland Investments team are available for an obligation-free chat today.
Please contact us today so we can partner with you to build momentum in your portfolio.