As a Mortgage Broker team in Springfield, West Brisbane, we've been very fortunate to see a consistent, affordable property market over the last decade. However, with record low-interest rates, we're now seeingQueensland, and in particular, Brisbane property market prices skyrocket.
Part of this boom is people selling up in Melbourne and Sydney and moving to our less dense city, where we have a more relaxed, outdoor-based lifestyle. It's not easy to escape the city in Melbourne and Sydney, where as, in Brisbane you're only an hour and a bit from country towns or beaches. We have also been blessed in Brisbane to escape the worst of the covid outbreaks, and that in itself is a big drawcard to relocate to the Sunny state.
According to Atlas's performance officer, Christine Mikhael, it's not only the desire for lower-density housing, but now that working remotely is much more common practice, more people are looking at Brisbane property, including upcoming suburbs like our own Springfield and Brookwater.
As more people relocate to Queensland, prices are naturally set to grow. “Thanks to record-low interest rates and government incentives, buyer demand is rising rapidly, and prices are expected to remain climbing this year- the quickest since 2003,” Atlas's performance officer, Christine Mikhael says.
CoreLogic’s research lead, Tim Lawless has published some even more interesting facts: "Over the quarter, Brisbane property values have grown 2.5%, outpacing Sydney's 1.6% rise".
With this major surge in interstate migration, which is at 90% above the decade average, Queensland has overtaken every other state, countering the decline of international migrants. Ultimately, Mr Lawless believes that Queensland’s economic and property market is very favourable, with a population increase, more affordable housing than many other states anda rising labour force. All of which create the ideal recipe for housing demand on rising house prices.
Understanding property investor activity in 2021
As further evidence of Queensland’s growth in the property market, investor mortgage demand has been recently recorded at approx. 22%, a figure that has been steadily rising since September 2020.
According to Mr Lawless of CoreLogic: “Queensland is presenting investors with a low-risk market in the sense that it’s cheaper to buy in Queensland, and there are still high rental yields and demand. Combine these factors, and naturally, we're seeing investors being more active in SE Queensland than Sydney".
Owner-occupier trends in 2021
Owner-occupiers are also rising in the Queensland property market. At Zest Mortgage Solutions in Brookwater (West Brisbane), we have seen first hand the effects of government schemes like the First Home Loan DepositScheme, stamp duty concessions, HomeBuilder and state-specific concessions.
Combined with super-low interest rates, entering into the property market is more appealing and more accessible for first home buyers than it has been in a long time.
Looking at the remainder of 2021, we may not see the record growth and demand of the last quarter. However, the demand for property inSpringfield and Brookwater (West Brisbane) sure isn't slowing down. With the roll-out of the covid-19 vaccines, albeit slower than hoped, Queensland, along with all of Australia, should continue down the road of recovery. Unfortunately, this means that property prices are only predicted to continue to rise, and investing or buying now is a smart move.
