A number of regional areas in Queensland are set to have a bumper year in 2015, according to a national real estate group.
According to Raine & Horne market conditions are improving in Brisbane and on the Gold Coast, so savvy investors should now start looking further afield for capital growth and decent rental yields.
“Major hubs such as Toowoomba are set to benefit from major infrastructure improvements, while smaller centres such as Woodford and Kingaroy will enjoy the benefits of factors such as lower interest rates and the breaking drought,” Steve Worrad, general manager Queensland Raine & Horne said.
“Once we get past the Queensland election, which was called by the Premier for 31 January, homeowners and investors considering the sale of a regional property in Queensland can expect excellent selling conditions in 2015.”
The real estate group said Toowoomba, Moreton Bay and the South Burnett region would be the notable beneficiaries of the improved market conditions.
Andrew Lynch, principal of Raine & Horne Toowoomba predicted the recent launch of the Brisbane West Wellcamp Airport will have a dramatic impact on the economy and real estate markets in the western-Queensland town.
“As it stands, Toowoomba is a multi-industry town with strong service and health care businesses and a robust agricultural sector. It is also a strong educational hub with the University of Southern Queensland (USQ) and the private schools led by Toowoomba Prep and Toowoomba Grammar employing hundreds of locals.
“The airport will magnify Toowoomba’s excellent economic prospects as a regional hub by bringing more businesses, tourists and investors to the town, which in turn will underpin real estate values and rental yields,” he said.
Mr Lynch predicted the residential market in greater Toowoomba would grow by between five and eight per cent in 2015.
“It will be higher in some suburbs such as Rangeville and Centenary Heights, which are tightly-held locations on the eastern side of Toowoomba, which is popular with owner-occupiers.
“The median price range in Rangeville and Centenary Heights is around $400,000 and properties are selling like hotcakes.”
In addition, Mr Lynch said new developments close to USQ are proving popular with yield-hungry investors.
“Suburbs to watch include Darling Heights which is very close to USQ and shots, while [with] the shortage of housing in that area, rental yields of five per cent are very achievable.
“Brand new four bedroom homes with double garages in Darling Heights are selling for $460,000 and renting for between $480 and $490,000 a week.
“Throw in the depreciation benefits of owning a new investment, and a residential property in Darling Heights will stack up in 2015,” said Mr Lynch.
Raine & Horne also contended the Moreton Bay region would continue to attract investors, as well as draw first-time buyers into the market.
“While the Woodford market has previously been dominated by investors, there is a noticeable trend towards young couples and a re-emergence of first home buyers,” said Jill Garth, principal of Raine & Horne Woodford.
“There is a definite and clear shift in the demographics of the area, which was once a very aged population. The more recent call for further interest rate cuts is also fuelling activity.”
Low interest rates and strong rents are also giving investors a rare opportunity to positively or neutrally gear an investment property in Woodford, according to Ms Garth.
“Yield-hungry property investors will enter the market in greater numbers in 2015, as prices bottom out and rental growth continues,” she said.
John Allery, co-principal of Raine & Horne Kingaroy said the South Burnett region of Queensland was also set to benefit in 2015 – with real estate prices recovering from a drought-induced slump and yields remaining strong.