There’s no doubt that Queensland is a great place to live. Its coastal scenery, modern urban and metropolitan areas, and relaxed lifestyle create a wonderful place that millions call home.
It should come as no surprise that Queensland is currently experiencing an explosive population boom. The question is, what does this mean for Brisbane’s property market? Let’s take a look.
Queensland’s population boom
Recent news reports and Australian Bureau of Statistics (ABS) statistics confirm people are fleeing southern states in droves. And many are heading north to Queensland in search of sunnier climates and more affordable housing.
And while Queensland has long been the dream escape route for retirees, its most recent ‘southern immigrants’ are young, working families.
Back in May 2021, a Brisbane Times headline announced ‘’We haven’t looked back’: Qld’s biggest population boom in 16 years. The article said:
‘Sunny Queensland experienced a boom in new residents not seen in almost two decades as families fled COVID lockdowns in southern states in 2020 in search of a better lifestyle.’
Queensland was a winner, having its highest net gain since 2004, with 30,000 moving to the Sunshine State from interstate’.
The article went on to cite ABS stats showing of the 30,000 people who’d made the trek north, 13,000 had settled in Brisbane. And while COVID-19 was a factor, housing affordability, particularly in Sydney and Melbourne, was also a major reason.
It’s in the numbers
Even in 2022, COVID-19 continues to impact people’s lives and futures. One of the few benefits of the pandemic is the realisation that many jobs are no longer tied to a single location. In March 2020 many workers had no choice but to scramble and start working from home. Most thought it would be temporary, but more than two years later many are still working effectively and efficiently from home.
With working from home likely to be a feature of many jobs as we move into a post-COVID-19 world, this made the much-longed-for interstate move to Queensland suddenly a very real option.
Although ABS stats from the March 2021 quarter showed a slowing down of internal migration numbers, Greater Brisbane was still gaining people. ABS noted:
‘There was a net gain of 3,300 people for Greater Brisbane in the March 2021 quarter, compared with 4,800 in the previous quarter.
Brisbane had net gains of 710 people from the rest of the state and 2,600 interstate.’
That’s a lot of people needing somewhere to live.
Why people move to Queensland
While the pandemic pushed some people to move to Queensland, it’s not the only reason. Common reasons people want to call Brisbane home include:
- Weather – beautiful one day, perfect the next.
- Lifestyle – diverse and laidback
- Stunning beaches and glorious coastlines
- The University of Queensland (UQ)
- Quality education including:
- Queensland Academy for Science, Mathematics and Technology
- Brisbane Grammar School
- Brisbane Girls Grammar School
- St Aidan’s Anglican Girl’s School
- Brisbane State High School
Brisbane housing market
At the start of the pandemic in March 2020, economists were predicting property prices across all major capital cities would fall by around ten percent. They speculated job losses, an economy grinding to a sudden halt together with a lack of open houses, and on-site auctions would see house prices plummet.
As usual, the Australian housing market, buoyed by the Great Aussie Dream of homeownership, failed to read the memo. In fact, not only did house prices across all markets not fall, but they also surged to record highs.
The latest Domain House Price Report for the June 2021 quarter noted the median house price in Brisbane was $678,236. That’s an increase of almost $33,000 over the previous three months, with a whopping $78,000 over the last year. This amounts to a 13 percent annual increase.
But it wasn’t all good news. For Brisbane unit owners, prices fell by $1800 to $394,287 placing them below the mid 2016 price peak by some $22,000.
Who’s fuelling these property numbers?
People from all over Australia, and even regional Queensland, are flocking to Brisbane. But it’s not only internal immigration fuelling growth, the Domain House Price Report suggests ‘upgrading homeowners are fuelling house prices, as well as interstate and expat buyers coming from more expensive cities.’ The dip in unit prices is seen as a long-term trend due to increased development resulting in an oversupply of units on the market.
The report continues:
‘Interstate buyers continue to flock to south-east Queensland, drawn to the affordability and lifestyle. With Brisbane set to host the 2032 Olympics, significant infrastructure investment and associated job creation in the lead up will place additional demand on housing. This could help to drive a turnaround in unit price performance as investor interest grows, supporting price growth in the years leading up to the games.’
It would seem that, just like the people who continue to flood into Queensland and Brisbane, the Brisbane property market will continue to grow.
Looking Towards The Future
With a predicted RBA interest rate increase on the cards in the middle of the year, some homeowners and investors may be forced to sell, which could increase stock and decrease demand. However, with the never-before-seen resilience of the Australian market as a whole, homeowners, investors, analysts and commentators will be watching on with keen interest.
Can We Help With Your Property Journey?
Of course, you don’t need to research this information when you’re planning your property investment journey–that’s what we’re here for. If you’re looking for an expert team to help with your property investment journey, request a Free 30-Minute Finance Strategy Session during which you will…
- Gain greater clarity over where you want to be in terms of owning investment properties (and how to structure your loans to get there the fastest, safest way)
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- Discover clever, no-cost ways to save money on interest, fees, and charges — immediately
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This no-obligation session will be held with one of our experienced mortgage brokers.
Please be assured this will not be a thinly disguised sales presentation. On the contrary, you’ll receive our best strategic advice, specific to your situation, so you too can accumulate multiple properties without sacrificing your current lifestyle and accelerate your progress towards wealth.
Please note, the numbers and assumptions listed in this article are for educational purposes only. Individuals should seek specific advice pertaining to their unique situation and the real estate market before making any decisions.
Trilogy Funding Two is a corporate credit representative (Representative Number 506131) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237)