Newspaper article The Northern Star (Lismore, Australia)

SE Queensland Affordable and Resilient

Newspaper article The Northern Star (Lismore, Australia)

SE Queensland Affordable and Resilient

Article excerpt

SOUTH-EAST Queensland continues to offer outstanding opportunity for growth but a sluggish economy, political upheaval, low population growth and an impending apartment oversupply is delaying significant price growth overdue in Brisbane today.

In our recently released 2017 McGrath Report, we discussed how the end of the mining boom has hit Queensland and its capital city hard. Brisbane is no longer experiencing the strong flow of money that came from regional areas where mining workers earning big salaries were investing in Brisbane real estate or buying family homes in Brisbane for a fly-in fly-out lifestyle.

Latest statistics from the ABS and CoreLogic RP Data show Brisbane's population growth is at its lowest point since 2001

But through all this, the property market is showing resilience. According to CoreLogic RP Data, median property values (houses and apartments) along the Brisbane to Gold Coast corridor rose by 5.7% to $482,000 in FY2016 compared to 3.5% growth in FY2015 and 6.7% in FY2014.

Despite all the big picture challenges, the market is currently seen as affordable, safe, steady, reliable and doing well in tough economic conditions.

In the apartment market, Brisbane is facing an oversupply with a two-year pipeline of 44,511 dwellings to be completed, according to CoreLogic RP Data*. This is significant when ordinarily about 30,000 apartments would be sold in this timeframe and that includes a combination of old and new.

The oversupply will be primarily around the city and inner ring areas. Investors are increasingly wary of this and some developers have delayed their projects. However, it does present an opportunity for owner-occupiers with a long term view. The newly boosted First Home Owners' Grant, up from $15,000 to $20,000 until June 30, 2017 should help young buyers in this market.

On the Gold Coast, plenty is happening and it's all positive. Locals who bought highly discounted properties in prime areas post-GFC have now renovated or re-built and are selling with a view to buying again in a better location. They are making money and moving up the ladder through a buy, renovate, sell and repeat strategy. …

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