Fresh op­por­tu­ni­ties emerge

With ex­perts pre­dict­ing a slow­down in the Mel­bourne and Syd­ney res­i­den­tial mar­kets, canny buy­ers and in­vestors will soon be look­ing to Queens­land’s prop­erty scene

The Courier-Mail - Property - - MARKET OUTLOOK -

AN IN­CREAS­ING num­ber of com­men­ta­tors are pre­dict­ing the Syd­ney and Mel­bourne res­i­den­tial prop­erty mar­kets are about to run out of steam, leav­ing buy­ers look­ing for al­ter­na­tives.

Some in­vestors have not only been priced out of th­ese mar­kets al­ready, but are quickly look­ing to other ar­eas with bet­ter prospects for con­tin­ued cap­i­tal growth.

Lend­ing fi­nance fig­ures from the Aus­tralian Bureau of Statis­tics for Novem­ber 2014 in­di­cate in­vestors across the coun­try are be­gin­ning to pause for breath. All states, bar NSW – which saw num­bers re­main rel­a­tively un­changed – recorded a drop in es­ti­mated in­vestor num­bers.

The great­est fall was in the North­ern Ter­ri­tory, which was down 29.5 per cent, fol­lowed by West­ern Australia (down 13.7 per cent) and Tas­ma­nia and the ACT (both down 12.5 per cent). In Queens­land, es­ti­mated in­vestor num­bers were down 11.2 per cent, while in Mel­bourne, dwellings bought for in­vest­ment pur­poses were down 11.8 per cent.

Na­tion­wide, the share of the res­i­den­tial prop­erty mar­ket held by in­vestors re­mained un­changed at 38.3 per cent dur­ing Novem­ber.

Although down from a peak of 39.8 per cent in June last year, the pro­por­tion of dwellings fi­nanced for in­vest­ment pur­poses is up from the 36.4 per cent recorded dur­ing Novem­ber 2013.

Novem­ber is typ­i­cally a qui­eter time of year across all buyer types, so th­ese re­sults are in line with his­tor­i­cal trends.

In­vestor ac­tiv­ity looks to be plateau­ing in the likes of Syd­ney, so we will wait and see where ac­tive in­vestors will look to buy in 2015.

With the heat com­ing out of the Syd­ney and Mel­bourne mar­kets, Bris­bane and other parts of Queens­land are most likely set to ben­e­fit, as in­vestors turn to the Sun­shine State for cap­i­tal growth op­por­tu­ni­ties.

And it’s not only in­vestors who are likely to come in search of op­por­tu­ni­ties in Queens­land.

Home buy­ers from in­ter­state are also on the look­out for more af­ford­able op­tions, which is likely to mean an in­crease in Queens­land’s net migration.

This, in turn, will add to the al­ready im­prov­ing prop­erty mar­kets across the state, as buyer de­mand fur­ther out­strips list­ing num­bers.

In­ter­state migration in Queens­land cur­rently ac­counts for just 11 per cent of the state’s pop­u­la­tion growth, with less than 150 net res­i­dents from in­ter­state a week.

Th­ese lev­els are a long way down from 10 years ago, when net in­ter­state migration was the largest con­trib­u­tor to Queens­land’s pop­u­la­tion growth. Back then, in­ter­state migration ac­counted for about 40 per cent of Queens­land’s over­all migration, with about 600 new res­i­dents a week en­ter­ing the state.

And an in­creas­ing pop­u­la­tion is most wel­come, par­tic­u­larly at a time when in­vestors are al­ready quite ac­tive here in Queens­land.

This is re­sult­ing in the in­creased rental sup­ply be­ing ab­sorbed as more peo­ple call Queens­land home.

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