South East Queensland

South East Queensland

With its economy on the rise, South East Queensland could be the new investment property hotspot

After several years in the doldrums following the GFC and resource industry downturn, South East Queensland’s economy may well be turning the corner. When the economy grows, the housing market for investment properties usually goes along for the ride.

As a result, economic forecaster, BIS Oxford Economics suggests Brisbane will lead the capitals, with 13% property price growth predicted by 2021. With massive infrastructure spending announced in the latest state budget, and the ongoing recovery of the resources industries, economic growth is predicted to accelerate from 2.5% in FY17 to 3% by FY19.

With strong interstate migration, affordable pricing, economic and job growth, Queensland is emerging as a new investment properties hotspot. The levels of government infrastructure spending are on the rise, which contributes even further.

Research predicts that South East Queensland is going to experience a major population boom with around 1,500,000 new residents over the next 20 years. The cause of this is predicted to be the comparatively higher investment property prices in Victoria and New South Wales.

While Brisbane remains a desirable destination, many southern migrants are showing a preference for beachside neighbours, Gold Coast and Sunshine Coast, putting further upward pressure on property values. This has resulted in higher growth in the regions, with house prices rising 7.7% on the Gold Coast and 5.9% on the Sunshine Coast compared to 2.6% in Brisbane over the 12 months to March 2018, according to REIQ figures.

Recent data suggests that the high yielding properties of South East Queensland will be the outer suburbs of Logan and Ipswich. The last three years have seen the population rise by over 60,800 residents. The housing in some areas is already undersupplied and with the strong population growth forecasts, this will tighten even further. Ipswich’s population is set to grow with a significant 144% increase in new residents and Logan will also show an upward trend in population growth with 56% growth by 2036.

The real investment properties opportunity arises with the forecast population in South East Queensland being supported by more than $25 billion in infrastructure spending by 2036, set aside to accommodate the surge of new residents predicted.

Although, only time will tell if the investment properties prospects will come to fruition as predicted. With our enviable climate, access to stunning beaches and hinterland, supported strongly by economic and job growth prospects, along with affordable property prices, the market is going upward. The level of confidence which was wasn’t seen for some time, again, seems on the rise.

“Capital growth in Sydney has decreased and rental income is declining.  People are making more money in QLD as capital growth and rental yields are on the increase…it’s a win win situation”.

~ Rene Marzinger

There can always be locations or properties that will perform better. If you’re a savvy investor seeking long-term growth, and are in the market for investment property or finance. We will be happy to help with professional advice and expertise. Please give us a call for a no-obligation chat about your investment property requirements.