Regions show growth prospects for the Sunshine State and the rental market is tightening
Brisbane's position weakened as growth rates fell negatively from 12 months to April 2019, according to the CoreLogic Real Estate Value Index.
"Queensland has promised to be the next booming city in five years – that did not happen. This is not the case this year either, and it is unlikely to be the case next year – not at all massively, "says Results' Mentorship Director, Brendan Kelly.
"It is not in a growth position because it is not a buoyant market. The unit market in Brisbane itself is still a bit oversupplied. There is still some capacity to fill in order for new mass developments to be imminent, so much remains to be done to meet the demand. "
Brisbane "is experiencing growth and decline in equal proportions," with the balance gradually shifting to red, Kelly explains.
"Brisbane has been growing in decline. I predict that this trend will continue to freeze in negative territory during this year: you will get a decline of about 40% and a growth of about 25%, so that the value continues to fall, "he says.
Nevertheless, it is expected that the negative trend will not last too long and that Brisbane will soon return to neutral territory.
Precious stones lie beyond the subway
As for a while, the best places to buy in Queensland lie outside the capital, in areas like the Sunshine Coast and the Gold Coast.
"The Sunshine Coast and Gold Coast aroused much more interest recently – the excess supply was absorbed; prices are beginning to evolve in the unit market, "says Kelly.
According to the Real Estate Institute of Queensland (REIQ), the vacancy rate has also fallen into a comfortable range. Gladstone saw its average rate drop from 4.2% to 3.5% for the first time since 2012; Meanwhile, the rental market in Townsville has tightened considerably, from 4.3% to only 1.5%.
However, this move could also be a disadvantage if rents begin to rise due to limited supply.
"In Queensland, 34% of people rent our house and, given the constant population growth, we clearly need an additional offer," says Antonia Mercorella, CEO of REIQ.
"The state is retiring from social housing in Queensland, which means that the burden falls on private investors."
SUBURB OF WATCH
COOLUM BEACH: The units remain positive
The site of Mount Coolum, which claims to be the second largest rock in the world, is not limited to mountains; it is also a seaside suburb that attracts tourists to its waves and relaxed atmosphere.
Coolum Beach is generally a growing suburb, but between 12 months and April 2019, housing prices fell 3% to $ 680,759. Units, on the other hand, have maintained positive positivity over the last five years.
Rental properties are also flourishing in this suburb, with average rates of $ 490 per week for homes and $ 400 per week for units. Unit investors also enjoyed a strong average yield of 5.2%.
Tourism: Coolum Beach is a popular tourist destination known for its surf beach
Yield: Investors Achieve an Average Rental Return of 5.2% on Units
Top suburbs:
tank
,
Padbury
,
alexandra hills
,
Alderley
,
Marrickville
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