South-east Queensland: the one to watch?
Although the Queensland property market as a whole continues to be enticing to potential buyers, there are some areas that are proving more alluring than others.
South-east Queensland has been earmarked as one of the standout performers, as the region has delivered double-digit price growth, which is set to continue for the next three years.
In fact, the market is so favourable at the moment that some people are selling properties elsewhere and trading up in south-east Queensland, where they can get a lot more for their money, explained real estate agent John McGrath.
Where is demand coming from?
Demand for Queensland investment property is coming from a number of sources, Mr McGrath confirmed in an interview with The Australian.
Chinese investors are keen to see what they can get for their money, while the low interest rate environment is encouraging more people to consider making an investment.
After all, the official cash rate is now at an all-time low of 2.5 per cent, thanks to two reductions of 0.25 percentage points implemented by the Reserve Bank of Australia in May and August this year.
Improving employment prospects are also giving people the incentive they need to consider property investing in south-east Queensland – as Mr McGrath puts it, "if you don't have a job you are not going to buy real estate".
Areas to keep an eye on
Some areas have already proved their worth as property hot spots in Queensland, with Brisbane and Hamilton emerging as major contenders.
Although growth in the $1 million-plus price bracket has been slow in Brisbane, investors are still finding properties that they can make a success of in the long term.
Hamilton, found in the city's inner-north, has seen its prices increase by almost a quarter (23 per cent) over the past three years, making it a lucrative location for an investment.
The McGrath report showed that 46 of Brisbane's suburbs have median apartment prices of less than $300, which marks a significant rise from the 30 registered last year.
Queensland leads the nation
Queensland remains a sound choice for a property investment, not least because its economy continues to lead the way for the rest of the nation.
Other areas have seen a significant decline in prices – such as Western Australia – but the state is much better placed to weather the economic storm and come out fighting, as indeed it has.
Although south-east Queensland may have been acknowledged as being one of the highest performers of the moment, there are undoubtedly other parts of the state that will offer good returns.
Doing the necessary research is essential before committing to any property investment, no matter how large or small.