How does an economist view Labor’s housing plans?
Saturday’s (21 May) federal election brought with it a new government, with the Albanese-led Labor party winning power...
The Gympie property market is on fire as buyers from north of Brisbane look for a better quality of life and more affordable property prices.
Although initial trend shows that southerners are flocking to the state, new research reveals that approximately 85 per cent of Gympie property buyers are from south-east Queensland. Specifically, a majority of the buyers came from the Sunshine Coast, Brisbane, and the Northern Gold Coast.
Century 21 Platinum Agents Principal Billy Mitchell has explained why an exponentially growing number of buyers from more expensive locations down south are flocking to Gympie: “Compared to the rest of the south-east, the Gympie property market remains affordable. High weekly rents on the Sunshine Coast and Brisbane, as well as the low-interest rate environment, are also motivating plenty of tenants to become home owners here instead of renters there.”
True enough, data from the Real Estate Institute of Queensland (REIQ) shows the median house price in Gympie as of March was $340,000. In Sunshine Coast and Brisbane, average house prices cost more than double that amount.
Selling like hotcakes
Even before the pandemic, the Gympie and Cooloola Coast property markets were already red-hot, thanks to a four-lane highway from Gympie to the state border that made the region accessible to those coming from the Sunshine Coast and other areas from the south.
“We were a bit of a hotspot pre-pandemic. Our market was definitely heading in the northerly direction but, after COVID, it has just gone berserk. , in particular, is off the charts,” Mr Mitchell said.
Strong property demand is now resulting in multiple offers on many properties, and is leading to a phenomenal rise in sale prices.
“House prices have jumped by about 20 per cent over the past year, but the buy-in prices still remain achievable for the majority of potential purchasers, which is just adding further fuel to the market,” he said.
Undersupply of rental properties, accessibility, economic and financial sensibility of Gympie will continue to appeal to investors and buyers.
Mr Mitchell further explained that “investors are also taking an active interest in our region with rents increasing significantly because of an undersupply of available rental properties. The vacancy rate in our region is currently just 0.3 per cent, which is a sign of a critical undersupply of rental properties that is not likely to change anytime soon”.
In closing, Mr Mitchell gave this example of why Gympie is a practical choice for buyers: “We have sold to some people that were living in Caloundra, travelling to Maroochydore every day for work, with a massive mortgage. They came and bought a four-bedroom, two-bathroom brick house for $460,000 here, and it’s only an extra 10-minute drive every day.”
Affordability refers to a product or service that is inexpensive and accessible for people with limited means.