Queensland is tipped as the next state to ride a wave of growth as interstate buyers increasingly look north, according to a leading real estate expert.
John McGrath, founder and CEO of McGrath Estate Agents, said the state’s south east corner was poised for take-off after a prolonged downturn.
“During the global financial crisis, Queensland was hit harder than most parts of Australia and the floods made an additional challenge and drove very little recovery growth in terms of prices,” Mr McGrath told Smart Property Investment’s sister publication Real Estate Business.
“The three or four major hubs – Brisbane, Gold Coast, Toowomba and the Sunshine Coast – are all areas that represent value today when compared with neighbouring capitals.”
Mr McGrath said tourism destinations are beginning to attract downsizers from other states.
“The baby boomers and empty nesters have woken up to this and said ‘wow’,” Mr McGrath said.
“They are selling their million-dollar houses and moving to the Gold Coast and reinvesting in real estate, and the south east Queensland area is proving just too good value.”
In addition, interstate retirees and investors are increasingly flocking to the Brisbane market.
“Investors are staying closer to the CBD and looking at unit options and apartment investments in suburbs like New Farm and Fortitude Valley as a growth market with a good rental yield,” Mr McGrath said.
“Those considering retirement and who are priced out of Sydney and Melbourne are looking at houses out in the suburbs.”
Mr McGrath’s positive sentiments were reflected in recent figures released by the Australian Bureau of Statistics, stating Brisbane recorded the greatest increase in dwelling approvals over the year, driven by the demand for units.
A spokesperson from Harcourts said a lot of development is going on around Brisbane, with investors from overseas and interstate looking around Bayside – a stone’s throw from the central business district.
“We are also seeing demand for larger blocks on two titles being subdivided and unit blocks being built in central Wynnum and Manly,” the spokesperson said.
“We are seeing demand from developers for these types of blocks which are close to transport, amenities and the waterfront.”