Queensland’s low growth rate in housing compared to the rest of the country is due to “challenging economic conditions” says the QBE Australian Housing Outlook 2016 - 2019.
During 2014-15, Queensland’s economy grew only 0.5%, compared to the national average of 2.5%, and Brisbane has seen a moderate house price growth in the last four years compared to Sydney and Melbourne. The withdrawal of the mining boom and unemployment are thought to be two key factors contributing to this.
So taking this into account it begs the question: what areas in Queensland are currently popular for property investors?
With the help of the QBE report, and other data analysis, we hope to provide some answers for Australian property investors.
What are the Queensland investment property hotspots?
The Queensland investment property hot spots at the moment are those areas enjoying the sunshine, as well as growth in house prices - the Gold Coast and the Sunshine Coast.
Figures compiled by CoreLogic show that the Sunshine Coast, along with the Gold Coast, were the region’s strongest performers to the September quarter 2016, and both enjoyed high rental yields. Rents rose 3% in the Sunshine Coast and 5% in the Gold Coast.
The Gold Coast in particular, says QBE, is being buoyed by tourism and the lower Australian dollar. Infrastructure projects, such as the 2018 Commonwealth Games, the Gold Coast Light Rail and Jupiter Casino Development are also driving public spending. New house constructions are also expected to boost house prices here in the next few years.
According to QBE, house prices are expected to rise by 7% in the Sunshine Coast and 8% in the Gold Coast by June 2019.
Is Brisbane a good property investment market?
At first glance Brisbane seems to be lagging behind, CoreLogic figures show an underwhelming rise in price of 3.85% in prices for all dwellings to the end of November 2016.
But don’t count Brisbane out of your Queensland investment property portfolio. The demand for housing in Brisbane is still strong due to an undersupply of homes and an oversupply of buyers, says the QBE report. The median house price is expected to rise 6.5% by June 2019.
Real estate agents are also seeing a desire by investors in some Brisbane suburbs for existing houses. These are being bought with the intention of building a granny flat out the back and renting it out. One suburb this is happening in is Logan with the areas of Marsden and Crestmead in hot demand.
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