Queensland is on the up
Traditionally Queensland’s property market has been outperformed by it’s Southern rivals, but the numbers say that might all change in 2018.
There are early signs of life in the Queensland property market, specifically in the South-East. Both National and State key performance indicators are beginning to align in ways not seen since the GFC of 2008, which bodes well for the State’s property market in 2018.
At a National level, Australian interest rates have remained at record lows for some time. Recent reports suggest there may be a small rate rise later this year, but even so – the official cash rate looks set to remain relatively low for the foreseeable future. A low, stable cash rate offers homeowners and investors the certainty and confidence required to either expand their portfolio or upsize their home.
Nationally, employment growth has been hit hard since the GFC, but Queensland may have turned a corner. In August 2017, employment growth in the Sunshine State reached a 10 year high. This was despite concerns around the mining boom’s decline, and a significant drop in employment numbers across the North of the State.
Net migration levels in Queensland have returned to pre-GFC levels, which will fuel demand for both rental properties and sales. Population growth in Queensland had been in dramatic decline since the highs of the mining boom and property prices have followed suite, with low and slow growth compared to southern markets.
With the expansion of major employment hubs within the Brisbane CBD, Airport and Hospitals, a return to normality of high net-migration to Queensland seems to have been triggered. There is also a widening gap between Queensland and the southern states when it comes to affordability, which may attract more people north.
Queensland also has the fastest growing net overseas migration in country at 19%, which will continue to add further demand to the market.
At the National level, the indicators are trending positively as interest rates should remain historically low for the short term to medium term. Statewide signs are also positive, as net migration returns to pre GFC levels, and employment growth continues its’ upward trend. If these factors continue to move in the right direction, Queensland may be the Nations best place to invest in 2018.
DISCLAIMER: The information contained in this article is provided for general information purposes only. The information should not be used or relied on as a substitute for legal advice. If you require legal advice concerning a specific fact or situation, you should seek independent legal advice. Metrocity Realty accepts no liability or responsibility for any loss occurring as a result of anyone acting or refraining from acting on the basis of the information contained herein. Whilst Metrocity has taken all reasonable measures to ensure that the information contained in this fact sheet is correct, MetroCity Realty gives no warranty and accepts no responsibility for the accuracy or the completeness of the information.