The investment property market in South East Queensland has been one of the most significant areas of growth in Australia over the past two years.
The region around the Sunshine Coast and Gold Coast is experiencing what one Brisbane real estate agent described as “unprecedented demand” from buyers of investment property.
The announcement of the Brisbane Olympics in 2032 has sparked widespread interest in the region, with house prices in South East Queensland set to skyrocket due to investment in infrastructure over the next decade to prepare the region for the Games.
The phenomenon of “rentvesting” is also seen as a factor, as buyers in Sydney and Melbourne are overpriced from their own cities and therefore choose to place their money in investment properties on the Sunshine Coast and Gold Coast instead. than buying their own homes. as owner-occupiers.
The growth in real estate prices in Brisbane has also enabled many of the city’s residents to generate cash for second and third properties, which they choose to buy in nearby coastal areas.
READ MORE: How “rentvestors” escape Sydney and Melbourne to other investment markets
“What we are seeing on the ground in Queensland is unprecedented demand from our counterparts in southern Sydney and Melbourne, as well as international interest,” said Adam Empringham of Image Property, a real estate agent. specializing in real estate investment in South East Queensland. Marlet.
“More than ever we are seeing local investors because for the first time in a long time we are seeing natural equity growth in our market, and that money is being spent, particularly on the Sunshine Coast and Gold Coast, c t is a lot of money in Brisbane to go further.
“We also see the lifestyle proposition of what South East Queensland can be like, people who sell their properties there and come here, buy a really nice property and then potentially buy. some investment properties for the same debt coverage. that they had in the south.
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“It’s not just about being priced outside of Sydney and Melbourne – it’s also about yield and efficiency. You’re currently getting a higher yield and higher return in South East Queensland: your Sydney average is less than 2%, but a solid return here is still 4.5%. “
“You get good capital growth, but also a good rental yield. This is why a lot of people in the south are considering investment properties in South East Queensland.
“What we are seeing is no different from what we saw in Sydney in the late 90s when the Sutherland Shire was connected to Sydney and the Central Coast became connected. You could almost say that now that Sydney is running towards Newcastle, there is hardly a gap.
“When you look at what’s going on here with the connectivity of our urban sprawl, we see the development of infrastructure and private sector investment in retail. We have major infrastructure emerging that we never had before.