The Australian housing market and reports of declining property prices has created an air of uncertainty for potential and established property investors. However, there are still opportunities for in growth in Australian housing investment. The key to successful property investing in Australia is to find the most viable locations.
According to property investors and media coverage, Sydney and Melbourne have suffered the most in the property market downturn. However, smart investors are looking elsewhere, and South East Queensland is looking like an attractive option.
South East Queensland Property Outlook 2019
SEQ property prices are steadily improving, and it looks like growth is on its way. SEQ has never experienced massive growth like southern states. However, experts believe that SEQ could be an excellent place to consider when searching for properties to purchase.
According to CoreLogic’s Hedonic Home Value Index, Brisbane performed well compared to other capitals in Australia. The latter part of 2018 showed some obvious growth in the property market throughout Inner city Brisbane, in 2019 the predicted growth for inner city Brisbane is 4%.
Affordability is a definite pull for potential property investors and young families moving to Queensland and investors looking to invest in property in the Queensland market.
Queensland is a good place for potential investors to start. Residential vacancies are currently low and look set to stay that way for the foreseeable future. According to SQM Research rates declined from 3.4% in August 2017 to 2.8% in August 2018.
Queensland’s predicted upturn is directly related to affordability, rapid migration, ongoing population growth, and infrastructure development.
State Government predictions indicate that Queensland’s population is set to rise rapidly to 6.7 million by 2036. A direct reaction to population growth will be widespread infrastructure development, meaning new roads, hospitals, schools, and recreational activities for a growing population of young families and professionals. To meet the demand, at least 30,000 new properties need to be built each year for the next 25 years.
The potential for growth lies in the fact that there is a shortage of housing in crucial areas. Therefore, as the population grows, more housing will be needed to meet the demand.
Suburbs like Ipswich and Logan will need to increase property development to meet the needs of the growing population. For example, population growth is set to increase by 144% by 2036. Logan’s population is set to grow by 46% by 2036.
The Queensland Infrastructure Boom
Queensland will experience a massive boost in infrastructure spending over the next few years, with a predicted spend of $25 billion.
According to the Queensland State Infrastructure Plan March 2016, these are the main infrastructure plans to be completed by 2021:
- $10.94 million transport plans with a $2 billion Brisbane Airport upgrade and multi billion Cross River Rail Initiative
- $743 million arts recreation facilities
- $2 billion Brisbane Live Entertainment facility
- $2.03 billion in energy development
- $5.37 billion for health and medical facilities
- $504 million for education and training
- $267 million for water projects
Significant infrastructure development is a vital sign that there are property investment opportunities in a particular area. This is not a surefire reason; however to invest in that area but in the case of South East Queensland, there are lots of reasons why investing in property is a good idea.
As stated earlier, extensive research is necessary when purchasing a property.
Analyse property cycles, and create a comprehensive risk management strategy before committing to anything.
There is definitely huge potential in Queensland for new and established property investors. However, it is necessary to conduct extensive research before committing to purchase a property.
Property investment requires comprehensive risk management strategies and in-depth research into the location, costs, interest rates, population growth, local business, and overall viability.
South East Queensland is being dubbed the newest investment hotspot nonetheless personal research, and intensive investigation is imperative.