Less than 5 per cent of interstate migrants during the 2016-2017 financial year settled in Brisbane, according to data from the ABS. Photo: Glenn Hunt
Interstate migration to Queensland is booming but analysis shows most new residents are bypassing Brisbane for other regions in the Sunshine State.
Buyers’ agency Propertyology analysed ABS data, which showed there were 17,246 internal migrations to Queensland in 2016-17. But out of those, only 846 relocated to Brisbane, which equates to less than 5 per cent.
Propertyology managing director Simon Pressley said the lion’s share went to the Gold Coast, Sunshine Coast, Moreton Bay, Cairns, Ipswich and the Scenic Rim.
“We’ve read a lot about interstate migration to Queensland lately and it’s been growing each year, which is great,” he said.
“The thing is, people automatically think Queensland means Brisbane but when you actually look closely at the numbers, they tell a very different story.”
As a proportion of total population growth over 2016-17, the biggest beneficiaries of interstate migration were Tasmania (22.5 per cent) and Queensland (21.9 per cent).
House prices in the regions with the most internal migrations have mainly increased — house prices on the Sunshine and Gold Coasts have increased by 7.9 per cent and 3.3 per cent respectively over the past 12 months — although Mr Pressley said the correlation between population growth and house price growth was often overstated.
“I know logically it makes sense — if an area has a big surge in population, house prices should go up — but there’s much more to it than that,” he said.
“Jobs growth is a lot more important than population growth, so is wage growth, [and] affordability is also extremely important.”
REIQ Gold Coast zone chair Andrew Henderson said each of those factors was connected and all had contributed to the Gold Coast’s house price success in recent years.
“Our local economy is strong but it’s also changed. We’re no longer solely reliant on the tourism industry. The diversity of our job offering has changed,” he said.
“With new infrastructure like universities and hospitals, we’ve got people moving here from interstate into jobs who would have never been able to move here 10, 20 years ago.
“So the age of the people we’ve got moving here has also changed. We’ve always had a lot of retirees but we’ve noticed a surge in people in their 20s, 30s and 40s – people moving their whole families up here. Around Mermaid Waters and Clear Island Waters there’s a really strong southern presence.”
Andrew Campbell of Ray White Redcliffe said the influx of interstate migrants buying up locally in the Moreton Bay region had become apparent more recently.
“We noticed a dip in the interstaters for a while but recently they’ve started to come back and it’s about affordability. All the properties around that median price are really moving so quickly,” he said.
Domain Group figures show the median house price in Moreton Bay is $456,000.
“There’s a lot of first-home buyers who fly up here for the weekend from Sydney. They know they can’t afford to buy there so they’re moving here because they see you can buy a house for under $500,000, get the lifestyle and still only have to drive 40 minutes to work in Brisbane,” Mr Campbell said.
But Mr Pressley said interstate migrants were being “pushed” to Queensland, rather “pulled” as they were during the mining boom.
“People have always wanted to come to Queensland because of the good lifestyle, weather and affordable housing,” he said.
“In the past they came for those things but also because we created more jobs year after year than everyone else. Now, we’re not dragging here through job growth, they’re coming here by default.
“To me, that’s why interstate migration hasn’t translated into property prices yet … and that’s why only minimal people have gone to Brisbane.
“I anticipate that in the next 12 months we’re going to see another really strong year of interstate migration into Queensland; if our economy improves, then it could translate to property prices for Brisbane and all over Queensland. Overall though, this is a good news story for Queensland and Brisbane as well. It’s looking positive.”
‘There’s not another home like it on the Gold Coast’: Unique Broadbeach Waters on the market
It’s a house that makes a statement. Dominated by unbroken, horizontal forms, and offering water frontage and city views, there’s a considerable 821 square metres of living space to kick back, relax and entertain in.
Now on the market for $7.495 million, the five-bedroom home at 15 Cleland Crescent, Broadbeach Waters is kitted out with floor-to-ceiling windows, a 2000-bottle cellar, butler’s pantry, media room and spa.
The vendor bought the block in 2010 for just under $2.895 million, with the market at the time feeling the effects of the GFC.
The resort-style residence itself is four years old. It was designed by Adam Beck from BDA Architects as a family home over 12 months, with a separate wing for their teenage offspring.
With the children now flying the nest, the time had come for the vendors to sell, said agent Jordan Williams from J.D. Prestige Agents.
“It’s in a really nice elevated position, due north,” Mr Williams said. “It’s got over 30 metres of water frontage, which is very hard to come by.”
“The design is very cool, it has two wings and two sets of stairs,” he added, noting that to design and build the property today would take $2.5 million or so.
Mr Williams said they’d had good numbers through to look at the property already, and he thought it would appeal to a Sydney or a Melbourne buyer in particular with its industrial vibe, off-form concrete and large panelling.
“There’s not another home like it on the Gold Coast – it’s very unique,” he said.
Overall, he thought the Gold Coast market was picking up after the end of financial year, with the winter chill beginning to thaw.
“The steady numbers are coming back through – I think we’re in a very good position,” Mr Williams said.
The median house price in Broadbeach Waters sits at $1,137,500 for the year to May 2019, based on 164 sales – a 3.4 per cent increase on a year ago.
So far this year, records show the most expensive sale in the suburb was 24 Andrea Avenue, Broadbeach Waters, which scored $3 million via private treaty in January.
Meanwhile, in 2017 it was 201-205 Monaco Street that took top honours with a $9.5 million sale in February, while 77 Monaco Street changed hands for $9 million in March.
Melbourne Top Investment Choice for Chinese Buyers
Chinese buyer enquiries for residential property in Australia has recorded two consecutive quarters of year-on-year growth for the first time since 2016, with Melbourne still the most popularAustralian city.
Australia has been losing Chinese buyer interest to other parts of the world due to increased taxes and banking restrictions.
But Australia’s hefty state foreign buyer taxes have been counterbalanced by its weakening dollar according to the latest Juwai.com report, which has seen it drop around 11 per cent of its value against the Chinese Yuan since mid-2018.
Juwai.com CEO Carrie Law says she expects Chinese buying to remain flat in 2019, with forecasts it could start to grow again inline Australia’s property market recovery.
“Chinese buyers make 83 per cent more enquiries about acquiring Melbourne property than they do Sydney,” Law said.
Brisbane has the second fastest rate of Chinese buyer growth. Law said Brisbane recorded 30.8 per cent more Chinese buyer enquiries in 2018.
“Brisbane is becoming a real alternative for the two traditional gateway cities of Melbourne and Sydney.
“The fastest growing cities, in terms of Chinese buyer interest, are Hobart, Brisbane, and Canberra.”
Melbourne receives 43.8 per cent of Chinese buying enquiries in Australia, Sydney 23.9 per cent, Brisbane 10.1 per cent, Perth and Adelaide 6.1 per cent, the Gold Coast 3.7 per cent, Canberra 3.6 per cent, and Hobart 2.6 per cent.
Weak Aussie dollar boosts buyer interest
Despite the tougher state foreign buyer taxes, Australian’s weakening dollar means it now costs less to secure real estate.
“A buyer holding Yuan today needs the equivalent of $88,800 less in funds compared to 2017 to purchase an $800,000 dwelling,” Law said.
“The plummeting Australian dollar, which has lost 11.1 per cent of its value against the Chinese Yuan since July 2018… [That] compares to the 8 per cent rate of the highest foreign buyer taxes, which are in New South Wales and Victoria.”
Law says Chinese demand is driven largely by growing wealth, a desire to store assets ‘safely’ overseas, education, travel, commercial ties, immigration and high-net-worth immigration, along with environment and lifestyle.
“Eighty-three per cent of Chinese consumers cite education as their reason for immigration, 69 per cent cite environment, 57 per cent cite food safety, and 28 per cent cite asset security.”
Australia’s Most Expensive Capital City to Rent a House Might Surprise You
When it comes to the nation’s most expensive capital city to rent a house, Sydney takes second place in what may come as a surprise to some, with Canberra crowned as Australia’s most expensive capital.
While Domain’s rental report shows Canberra remains as the nation’s most expensive capital to rent a house, it also shows it’s more expensive to rent a house in Hobart than Melbourne.
The latest report, which covers the median rental price for houses and units across the country, shows Melbourne house rents remained unchanged over the year at $430 per week, while unit rents increased 2.4 per cent over the year.
Taking in the unit market, despite Sydney’s price falls of almost 5 per cent over the year the harbour city is still the most expensive capital city to rent a unit.
Strong construction of new housing has weighed on rents in Sydney, and also contributed to the vacancy rate increasing to 3.2 per cent in June, up from 2.4 per cent one year ago, Domain’s Economist Trent Wiltshere says.
House rents fell by 3.6 per cent over the year to $530 per week.
While unit rents dropped by 0.9 per cent in the quarter and 4.5 per cent over the year.
“Rents held up the best on the Central Coast and on Sydney’s north shore, but fell in other Sydney regions,” the Domain report notes.
While largely thanks to the significant property price falls over the past few years, Sydney’s rental yields have risen slightly.
Melbourne’s strong population growth since 2013, averaging an annual 2.6 per cent, has seen ongoing rental demand.
House rents grew fastest in the Mornington Peninsula and in Melbourne’s inner-south, but were unchanged in Melbourne’s eastern suburb, for the past year.
Melbourne’s unit rents have increased by 2.4 per cent over the year.
While rent on a typical unit has increased 14 per cent over the past five years to $420, despite the city’s apartment construction boom during this time.
Melbourne’s house rents have also increased 13 per cent during this period.
Domain says unit rentals have held steady in recent years, despite the large supply of new Brisbane apartments.
“House rents were steady in most parts of Brisbane over the past 12-months, but unit rents increased 6 per cent in the inner city.”
Unit rents also increased by 2 per cent on the Gold Coast and the Sunshine Coast.
And while rental prices for houses across Greater Brisbanerecorded falls in the June quarter, rental prices have remained unchanged year-on-year.
Brisbane’s rental vacancy rate fell from 2.6 per cent to 2.2 per cent over the past year, a sign of a strengthening rental market, Wiltshere says.
House rents in Adelaide dropped 1 per cent in the June quarter, but have recorded an increase of 2.7 per cent over the year.
Adelaide’s unit rentals have increased by 1.7 per cent over the year, with the typical unit renting for around $305 a week, this makes Adelaide the cheapest across all capitals.
Hobart remains the fourth most expensive city to rent a house behind Canberra and Sydney, according to Domain’s report.
Canberra house rents dropped 3.5 per cent in the June quarter, but are unchanged over the year at $550 per week. Unit rents increased by 4.4 per cent over the year, sitting at $470.
Canberra unit rents have increased a staggering 18 per cent over the past three years, despite an apartment construction boom.
And Darwin rents for houses have now dropped from the 2014 highs of $700 a week to $490. Darwin units have dropped over the past five years from $570 to $385, reflecting declining demand as the city’s population decreases.
Perth remains the most affordable capital city to rent a house in Australia at $365 a week. Rental prices for both Perth houses (up 4.3 per cent) and units (up 3.3 per cent) have increased over the past year.
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