WHY INVEST IN SOUTH EAST
QUEENSLAND PROPERTY?
Demand exceeds supply
The mining boom and tourism are driving a Queensland economy that boasts low unemployment and robust growth. South East Queensland in particular is a major destination for 1000 interstate immigrants every week. This alone puts a strain on housing affordability and availability.
Since 1970 the South East Queensland property market has enjoyed an increase in property values of 11% p.a. This is not to say that in some years and in some areas only minimum growth was achieved and at times values even dropped back a little but overall the trend has been up.
According to the January 2007 report released by Macroplan Australia and commissioned by the Residential Development Council, the south east Queensland region is to experience a land shortage crisis in the next 10 years. In fact, according to the "Land Supply Study" by the year 2026 they are expecting a "disastrous shortfall" of 62,142 residential lots.
Rising property prices
The impact on housing affordability can only be imagined. In fact, according to most commentators, housing affordability is already becoming more and more of an issue for many Queenslanders.
Even if state and local governments address this looming issue of land shortage, and it is hoped that they do address it, the huge numbers of people migrating to the area will ensure steady growth in property values.
Increased rental values
As well as the looming land shortage and continued migration of people to South East Queensland there is the natural property cycle to take into account. We have been through high property prices that spiked in 2003 resulting in lower rental returns for investors.
Four increases in interest rates and a consequential slowdown in new building approvals has lead to a shortfall of quality rental properties. Local newspapers point out that rents of $300 to $460 a week are not uncommon with between 15 to 30 hopefuls turning out when rental properties are open for display.
Return on investment
The property cycle dictates that investors will now start to return to property as rising rents give better returns on their investment. Traditionally interest rates will ease to stimulate building; more people will enter the market and push prices up.
Most commentators agree that South East Queensland is under valued compared to Sydney and Melbourne, making 2007 an excellent time to be entering this exciting market.
The Jason Ryan Group works for you the buyer, unlike a real estate agent that is contracted to act on behalf of the seller.
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