With record high interstate migration and a chronic shortage of available rental properties in some locations, southeast Queensland is back onto the radar for property investors.
Pete Wargent, co-founder of Australia’s first national network of buyer’s agents, BuyersBuyers, said: "Over recent months there has been a huge amount of uncertainty over the future of land tax legislation in the Sunshine State.
“As such, some existing landlords were preparing to sell their properties to avoid being slugged with thousands of extra dollars per annum in land tax.
“And new investors were simply opting to stay away, instead choosing to look at investing elsewhere.
“As we’ve pointed out before, the land tax changes weren’t logical, and were set to add further pressures onto an already chronically tight rental market
“With the announcement of the shelving of land tax plans, investors are now looking at Queensland again, given the tremendous need for rental housing over the decade ahead out to the Brisbane Olympics in 2032 and beyond,” Mr Wargent said.
BuyersBuyers CEO Doron Peleg said that flexible working arrangements and a desire for lifestyle locations would see an ongoing demand for real estate in Brisbane, Gold Coast, and on the Sunshine Coast.
Mr Peleg said: “South-east Queensland has often been the main beneficiary of interstate migration, with southern buyers bringing their equity north to the warmer climate.
“The COVID pandemic accelerated the trend towards working remotely and working from home and has seen net interstate migration to the state rise to its highest ever level.
“We have also seen over the past few months the return of international students and skilled migrants from overseas.
“Unusually, Queensland had the highest population growth in the nation last year, and this may continue for a little while longer,” Mr Peleg said.
Mr Wargent said sentiment was cooler in Brisbane than a year earlier, and prices have come down in some cases.
"Tthere are certainly many cases of notable price drops in Brisbane now, particularly for B-grade and C-grade properties which need significant decoration or renovation work," he said.
“Materials and trades costs are currently high due to supply shortages, and not many buyers have the appetite to take on a major renovation at the moment.
“We still have seen some huge prices paid, usually for extremely well-presented properties in popular locations, such as Kedron to the north of Brisbane’s Central Business District.
“Another notable trend in Brisbane this year has been a shift in demand to townhouses and units in blue chip areas, reflecting reduced borrowing capacity and affordability constraints.
“House prices have significantly outperformed attached dwellings in Brisbane over the past dozen years, but the gap is closing a little now, at least in terms of the median price."
Photo Francesca Tosolin/Unsplash