Throughout the various lockdowns of the past few years, Queensland was upheld as a shining beacon of hope. As border restrictions eased, buyers and renters alike flocked to the Sunshine State as a safe haven. But has Queensland held its allure after the initial attraction faded?
Brisbane still a booming market
Earlier this year Knight Frank released their Global Residential Cities Index for Q1, 2022. This report tracks the movement in mainstream house prices across 150 global cities. Brisbane ranking in tenth spot, the highest position of any other Australian city, with an average annual growth of 28.4%. This growth in the Brisbane property market is reinforced by the latest Census population data. The insights published by the Australian Bureau of Statistics show that Brisbane has experienced one of the most significant population booms of any capital city. Since 2016 the city has seen a 11.2% increase in residents, now home to 2.5m people as of 2021.
Property availability a source of contention
Whilst it’s clear that many buyers and renters are keen to make the move to the Sunshine State, the question of availability looms large. A housing crisis has emerged across the state, with the demand pushing prices sky high. The lack of availability has driven some councils to take dramatic action. Brisbane City Council recently implemented a rate increase for properties that are rented as short-term accommodation on sites like Airbnb and Stayz. The measure which came into effect from July is intended to force homeowners to return properties to the long-term rental market.
Urban sprawl to the outer suburbs
Whilst properties remain scarce, especially in metro areas, purchasers have begun to look at their investment options further afield. From the latest Property Market Update we can see that coastal properties are soaring in popularity. Across the first half of 2022, Home Units were especially popular on the Gold Coast. This densely populated region offers investors a relaxed, seaside lifestyle with all the luxuries and amenities of inner-city living.
Whereas those investing in Houses also had an interest in the coastal lifestyle, they also looked to suburbs adjacent to the capital city of Brisbane. The update shows an increased presence in locations around the City of Ipswich, like Redbank Plains and Springfield Lakes. The Moreton Bay region, north of Brisbane, also features with the suburbs North Lakes, Narangba, and Caboolture. It isn’t surprising that any of these suburbs are featured within the Top 10 list given their popularity for new builds and the growing attraction to buyers as they offer cost-effective investments.
Whilst the premium house prices and low vacancy rates experienced in Brisbane seem to have stabilised in June, the question remains – where to from here? Queensland has a ten-year deadline to develop and implement a plan to solve these issues prior to the 2032 Summer Olympics. How the complex issue of property availability is tackled remains to be seen. But the hunger for property in the Sunshine State remains unsatiated.
