The Rising Appeal of Queensland's Real Estate Market
You'd be aware by now that the residential real estate market in Australia has been in a state of rapid change since the early days of the global pandemic. Contrary to what some may have expected, property values boomed during that tense period. While some of the heat came out of the market towards the end of 2022 (with that year recording a 4.9% drop overall), almost every major city in Australia again achieved notable growth in 2023, with most not only recovering but leaping forward from those losses.
According to data from CoreLogic, Darwin and Hobart were the only capitals to record negative growth during the 2023 calendar year, and even then, they each registered drops of less than 1%, which is hardly indicative of a correction. The other capitals performed strongly, as did many regional areas. Overall, CoreLogic's national Home Value Index (HVI) saw an 8.1% rise in 2023. Capital cities surged 9.3% on average, and regional areas 4.4%.
While performance was certainly mixed in regional areas, with some overall declines in Tasmania and Victoria, and only moderate gains in New South Wales, most of Wings Real Estate's clients are interested primarily in Queensland performance, and that was a bright area indeed. Brisbane dwellings chalked up a massive 13.1% growth on the Home Value Index, while regional Queensland (of which the Gold Coast is part) was similarly robust, with an 8.7% gain recorded.
These strong results for Queensland are in part due to an ongoing limitation on the supply of new properties, along with solid inbound migration from interstate and overseas. That's despite pressure from increasing interest rates, rising energy costs and a relatively uncertain international context, which points to continued resilience in this market. Rental growth largely matched the rises in values, with Brisbane house rents increasing by 6.7% on average and the city's unit rents growing at a lucky 13%.
Any investment advisor will rightly indicate that historic performance is no indication of future performance, as there are many external and internal pressures that factor into Queensland's ongoing market performance, and this article is not intended as investment advice, but general information drawn from CoreLogic's latest data. That said, 2023's trend is encouraging for those who already hold property in the Queensland market. Given the state's continued attractiveness as a lifestyle destination, its diverse economy and growth prospects ahead of the 2032 Olympic Games, it's fair to assume that the state will remain one of the more appealing property investment regions in Australia over the long term.
For accurate data and detailed insights, please refer to the full CoreLogic Australia article [here].