STANDOUT LOCATION: Townsville

3

This northern city has all the credentials for a big growth year, including a vibrant local economy, major infrastructure projects and lifestyle at affordable prices. Tropical storms and the impact on insurance costs is the only negative factor.

Brisbane was embracing a spectacular boom when floods drowned out the heat in the market early in 2022. It faded thereafter, particularly at the top end, although the affordable outer-ring municipalities like Ipswich City and Logan City continued to thrive.

With a big infrastructure spend under way, internal migration into south-east Queensland still strong and the 2032 Olympics generating focus and investment, Brisbane can expect a return to buoyancy in 2023, though not at the same levels of price growth as in 2021.

There will be a big marketing push on inner-city apartments, especially in suburbs close to the main Olympics venue in Woolloongabba. There is already evidence of rising demand for affordable apartments in near-city locations.

The state government has been conferring with the developers to address the shortage of rental homes. Investors have Queensland back on their wishlists now that the government has scrapped its draconian land tax policy.

Regional Queensland promises to be the busiest of Australia’s regional markets, although both the Gold Coast and the Sunshine Coast have passed their peaks. Both these markets have been trending down since the second half of 2021, with prices now too high for a growing number of buyers.

Queensland abounds with sizeable regional cities that offer lifestyle at affordable prices, as well as vibrant local economies capable of generating real estate growth.

Townsville and Toowoomba will lead and centres like Mackay, Rockhampton, Gladstone, Bundaberg and Cairns will be keen to follow. All these cities offer the prospects of houses below $400,000, as well as lifestyle and employment prospects.