Yesterday I was lucky enough to go to an excellent presentation from Herron Todd White, one of Australia’s most respected valuation firms, on the state of the Australian economy and the Queensland property market.
After an excellent overview on the state of the World economy from former Treasurer Peter Costello (you can see my notes on Facebook on this presentation), HTW’s Gavin Hulcombe gave a similarly great overview of the Queensland property market. I have included a couple of the key insights below.
Interstate Migration is back! Those of you who follow PropertyMash will already have read many articles where we have talked about this and the positive effect it is having on property demand in Queensland. The below graph is a great representation of just how strong this interstate migration to Queensland now is.
The next question is of course why? What is driving this interstate migration?
Gavin Hulcombe tells us it is two things — jobs and housing affordability.
The infrastructure boom that has now started in Brisbane will inject $45 Billion into the Queensland economy. To put this into perspective the most recent apartment construction boom which we have all been hearing about injected only $5 Billion into the economy. There is due to be nine times as much being spent over the next five years, which will supercharge construction activity, and in turn will drive job creation.
The vast improvement in housing affordability in Queensland is very aptly demonstrated in the below graph.
The take away from this is that the Brisbane and Gold Coast property markets are in a very solid state and well positioned for growth, unlike the Sydney and Melbourne markets that have been driving the so-called ‘National Housing Downturn’.
Astute investors are seeing this as an opportunity to buy into Queensland. One of Australia’s wealthiest men recently did just this as was reported in the Australian Financial Review.
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