The Queensland property market is tipped for strong growth in 2021, with investors able to capitalise on six emerging trends, two industry experts have revealed.
According to REIQ’s chief executive Antonia Mercorella and Propertyology’s head of research Simon Pressley, Queensland’s property market is likely to continue to be shaped by the COVID-19 outbreak.
Work from home
During the pandemic, Queenslanders swapped the office for their homes, which is tipped to continue into 2021.
“Work from home is happening on a large scale, and in a lot of cases for households, it’s not a short-term thing. Those who have decided they are going to work from home are now realising that home can now be anywhere,” Mr Pressley explained.
Mr Pressley believes this makes properties in lifestyle destinations more attractive than ever.
“All around Australia, that happened during the COVID-19 period, and it’s happening now on a large scale.”
“With this in mind, the coastal regions of Queensland are now much more attractive as they offer an affordable work-from-home lifestyle that isn’t readily available anywhere else,” he said.
In a post-pandemic world, consumers are swapping cities for lifestyle choices, with Queensland’s coastal region likely to benefit from this emerging trend.
Coastal destinations, including the Coast and Noosa, are already seeing a strong house market growth, with a median sale price increase of 1.8 per cent and 3.6 per cent, respectively, for the September quarter.
“Queensland’s coastal markets will continue to attract buyers looking for great lifestyle opportunities and a slower pace of life,” Ms Mercorella said.
“Even before the pandemic hit, we saw these markets in demand, but COVID-19 has certainly accelerated demand. This is due to a multitude of factors, including the increasing normality of working from home and the pursuit of a more relaxed lifestyle.”
Interest in Queensland from NSW and Victoria is likely to extend into 2021, with more affordable home options. A win on the health front is also likely to see interstate migration continue.
“This interest from Victoria and New South Wales will continue to grow this year as the unique opportunities that this great state offers becomes more apparent,” Ms Mercorella told investors.
“Freestanding houses on good-sized land within a 15-kilometre radius of Brisbane CBD will continue being hastily snapped up by those wanting proximity to the city with room to move.”
Landlords will continue to benefit from a strong rental property boom as a supply shortage continues to lift prices in 2021, the experts have predicted.
“Big increases to rent across the state of Queensland happened during the COVID-19 year,” Mr Pressley said.
“Through the second half of 2020, we saw Queensland’s vacancy rates tighten significantly, which put upwards pressure on rent prices, and that is going to be out of control in 2021.”
Mr Pressley said the amount of available properties is a lot lower than it has been in recent years.
“I can’t find a year, going back as far as official data takes us, that Australia has seen a bigger increase in rent than what’s going to happen in 2021.”
Regional Queensland tipped to rise
The regional areas are tipped for the strongest rental market growth in 2021, outperforming the metropolitan areas.
Ms Mercorella said “the regional tourism centres of Queensland like Bundaberg, Townsville and Mackay have so much to offer”.
“Great affordability, relaxed lifestyle and easy access to some of Queensland’s favourite attractions such as the Great Barrier Reef. It’s easy to see why these markets soared in 2020 and will continue to do so in 2021.”
Significant property growth
Those who currently hold a property in Queensland are likely to benefit from significant capital growth in 2021, the experts added.
“No Queensland location other than Noosa has seen a growth cycle since 2007… 2021 will be the breaking of Queensland real estate drought,” Mr Pressley said.
This can be attributed to an undersupply of housing stock and a growing demand due to all-time record-low interest rates, a boost in first home buyers, higher rental costs and an increasing number of people who want to work from home.
Additionally, Mr Pressley believes COVID-19 has forced the federal and state governments to spend more money to help stimulate the economy.
“Government spending is at an all-time record high, and all their decisions have been announced, but actual spending of the money doesn’t happen overnight.”
“The pressure that’s already in property markets throughout Queensland today is only going to get tighter and tighter as the year unfolds and money starts being spent,” he concluded.