Queensland housing more affordable

In Queensland, growth is finally turning around and the worst appears to be passing. — QIC chief economist Matthew Peter

QUEENSLAND housing is more affordable than its southern counterparts, QIC chief economist Matthew Peter told Master Builders Economic Breakfast in Brisbane last week.

The average Brisbane resident needed to devote less than 30 per cent of their disposable income in order to service their mortgage payments, as opposed to Sydney where that figure jumped to more than 40 per cent and Melbourne where it was hovering around 37 per cent, Dr Peter said.

He added Brisbane was a far more attractive market than its southern neighbours, with rental yields more than one percent higher than in Sydney or Melbourne.

“In Queensland, growth is finally turning around and the worst appears to be passing,” Dr Peter said.

“Population growth is starting to pick up, both from overseas and interstate,” he said.

“However, Queensland can only expect population growth to hover around 1.5 per cent, down from more than two per cent at its peak during the mining boom.”

Master Builders deputy chief executive officer Paul Bidwell welcomed Dr Peter’s observations.

“As population growth improves we expect this to have a flow-on effect, which will hopefully improve demand for new residential construction,” Mr Bidwell said.