by Danny Buxton
Director of Triple Zero Property
It is being dubbed as a “supersonic” property boom in SE Queensland as prices continue to soar with a growth rate of nearly 20 per cent. Not since the 1980’s has the property market seen this sort of annual hike in prices.
So, what does this mean if your dream is to buy your own home or invest in property? You may be thinking you have missed out.
Perhaps FOMO (fear of missing out) has struck, and you are considering buying anything you can find! On the other hand, no one wants to rush into a big financial decision that they may later regret.
Is property still affordable in SE Queensland?
Yes – some people are facing affordability constraints.
Yes – the value of loans to first home buyers is declining as the federal government’s HomeBuilder Grant continues to drop out of the market. This is also because the first home buyer subsidy (introduced in 2020) pushed many buyers to enter the market sooner than planned.
As of August 2021, Brisbane’s median house price is $691,000, which is still less than half of Sydney’s. So, while the home prices are increasing, there is still plenty of room for good growth over the next few years.
Will prices continue to rise in SE Queensland?
This year Brisbane has ranked the third-fastest city in Australia for growth (just behind Canberra and Hobart), with powerful forces working in the market. It’s not just interstate migration and low-interest rates pushing up prices… the locals know that it is a desirable place to live!
Even with restrictions easing southern states, the annual increase in population for Queensland is estimated to be around 40,000 people a year between 2022 and 2026 (Deloitte Australia).
So, demand for housing is strong, and the supply of new stock is low. In turn, this is putting pressure on the rental markets on the Gold Coast, Brisbane and Sunshine Coast, where vacancy rates are already below 1%.
Will the Olympic Games affect property prices?
A major indicator of property price growth is an increase in infrastructure spending. The Olympic games are set to turbocharge growth with the building and redevelopment of stadiums and venues. Plus, the fast-tracking of major transport infrastructure across SE Queensland will only further add to the growth in property values.
If the Sydney 2000 Olympics were any indication, SEQ could be tracking a similarly strong performance.
Where to from here?
The right process for success doesn’t change no matter what the market is doing!
- Don’t panic and check your mindset: You need to be positive, proactive, and responsible to make good financial decisions.
- Get all your ‘ducks in a row’ – including your finance/legal/Property Broker.
- Be market-ready – the reality is quality properties don’t last long in this market, so you need to move when the opportunity presents itself.
We can help you through these steps so you can future proof your investment. If you want part of the SE Queensland action, there are still opportunities available!
So book your obligation-free consultation today on 1300 897 000 or email us at [email protected].
This content is general information only. Your situation is specific and individual; as such, you should always consult a registered and qualified professional within the particular area of advice needed.