Queensland has been a mixed bag of returns for property investors in recent years, but some gems from 2018 have given investors a boost, and one buyer's agent is tipping new growth areas in 2019.
Quite a few states have seen solid price growth over the last five years, but according to Simon Pressley, head of research at Propertyology, Queensland has not been one of them.
Over the last 12 months, Noosa was the best performing property market with a 7.5 per cent median house price, Mr Pressley said.
Following this was the Gympie and the Gold Coast, with both tracking at 4 per cent.Coast with a rise of 7 per cent, and then both
Looking at the local government areas that make up the greater Brisbane region, Redlands performed the best at 4.8 per cent, followed by Logan with 4.3 per cent, Ipswich at 2.2 per cent, while both Brisbane City and Moreton Bay recorded growth of 2.2 per cent.
Mr Pressley said the state’s economy had failed to capitalise on the Asian Century phenomenon, the notion that Asian politics and culture are prominent in the global economy.
This in turn has contributed to the state earning the label of the highest unemployment rate.
“I remain bitterly disappointed with lack of planning, marketing and boldness to capitalise on the world-wide tourism boom that is now on its sixth year,” Mr Pressley said.
“Despite having more tourism attractions along its coast than any other state, Queensland was ranked a disappointing fifth on most tourism metrics.
“While I am still not brimming with confidence, I do foresee a brighter future for all of Queensland’s major metropolitan centres over the next few years.”
He also said interstate migration is likely to accelerate, along with the mining sector experiencing a boost.
“In the near term, I think that we’ll continue to see mild growth of 2 to 4 percent in all South East Queensland precincts (Brisbane, Gold Coast, Toowoomba, and Scenic Rim),” Mr Pressley said.
Of all of the regions in South East Queensland, Mr Pressley claimed the Sunshine Coast was likely to be the strongest yet again.
“Recent completion of the Kawana hospital provides welcome diversification to the economy while construction of a new CBD precinct at Maroochydore and a major expansion of the airport will be good for local economy,” he said.
Meanwhile, Noosa is expected to maintain its success and see a positive performance in 2019, fuelled in part particularly from Melbourne-based buyers.
“For different reasons, Mackay and Townsville both have potential to become two of Australia’s most improved property markets over the next few years. We also have optimism for Rockhampton,” he said.
Cairns up north was one area that Mr Pressley was particularly impressed by.
In the area, housing supply has remained tight due to low vacancy rates and building approvals, he said, and demand is likely to rise from multiple infrastructure and employment opportunities.
“There is an impressive list of infrastructure and major job-creating projects, including several new hotels, a sea port expansion, major convention centre upgrade, and university expansions,” Mr Pressley said.
“An under-supply of skilled labour, affordable housing, and a fantastic lifestyle are likely to attract out-of-towners to relocate to Cairns,” he concluded.