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Property Investment Queensland Update 2022

Here we explore the property market and key areas to understand the investment benefits that are available in getting you prepared to start investing in Queensland.
Property Investment Queensland Update 2022

Investing in the Queensland property market can have many benefits, depending on what your goals are. As Queensland is a large state with many different regions and lifestyles, it is likely that an area is right for your investment journey.

Queensland Housing Market

The Queensland property market is currently experiencing a boom across all regions. In February 2021, property reports from CoreLogic indicated that almost every region in Queensland saw growth in prices - with Townsville the only region to see a 0.6% decrease3. 

Historically, the median sale prices of properties in Queensland have been quite stable with a gradual increase over time. The below graph4 shows that over the 11 year period from March 2009-September 2020 the median prices in Queensland have increased from approximately $375,000 to $462,000 with a growth rate of around 2.21%. 

Unlike other states in Australia, Queensland’s housing market defied the economic predictions caused by the COVID-19 pandemic and managed to thrive in 2020. In her December 2020 Quarter analysis, REIQ CEO, Antonia Mercorella highlighted that the rise in prices and interest in Queensland’s property market can be attributed to strong interstate migration, especially in areas such as Sunshine Coast and Gold Coast5. This boom has resulted in the property market for 52 out of 56 (93%) regional Local Government Areas (LGAs) recording positive annual growth. 

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Queensland Economy and Infrastructure

As with cities and countries all over the world, Queensland’s economy was heavily impacted by the Coronavirus Pandemic. This was evident with the unemployment rate hitting a peak of 8.8% in July 2020, the highest unemployment rate the state experienced since hitting 9.0% in May 20016.

Despite setbacks from the global pandemic, Queensland’s economy is worth more than $360b and over the past 2 decades, it’s economic growth has generally exceeded the national average7. The strong economic growth can be attributed to trends such as strong population growth, a resource investment boom and increases in LNG exports. This put Queensland in a good position going into the COVID-19 economic downturn and allowed the government to act quickly and maintain a well executed recovery plan. 

Queensland’s response to COVID-19 has resulted in a positive impact to the economy going into 2021, through being the first state to recover all jobs lost during the pandemic8 and having a forecasted increase to the economy of 4.6%9. 

Queensland’s economic recovery plan includes major developments to the infrastructure across all areas in the state. With a $56b, four-year, infrastructure guarantee, the Queensland government has announced projects that are set to have great impacts in all of the states regions. 

Some of the larger projects planned to begin or continue in 2021 include:

  • South East Queensland

    $5.4b Cross River Rail

  • Gold Coast

    $1b M1 upgrade

     

  • Cairns

    $480m Bruce highway upgrade

  • Sunshine Coast & Moreton Bay

    $662m Bruce Highway upgrade

  • Townsville

    $230m Townsville Ring Road Stage 5 Design and Build  

     

  • Mackay

    $120m Bruce highway upgrade

These infrastructure projects will help create thousands of jobs all over Queensland during construction and once complete will improve the livability in regions across the state, making now a great opportunity to look at investing in these areas. 

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Best Areas in Queensland to Invest

Brisbane, Queensland’s capital city, is currently one of the main drivers for Queensland’s property boom. Brisbane’s property market has historically been a steady investment seeing consistent gradual growth in house prices and providing a strong rental yield. 

With many of the State’s major infrastructure projects planned being centered around improving the transport and accessibility to Brisbane, as well as hosting the upcoming 2032 Olympic Games, Brisbane is predicted to experience further growth in the coming years.

Read our guide for more information on investing in Brisbane here. 

Located approximately 78km south of Brisbane, the Gold Coast region provides a similar lifestyle offered with the Sunshine Coast, with a bit more of a CBD and tourist appeal. 

Similar to the Sunshine Coast, the Gold Coast has been one of the top locations for internal migration over the last few years and it’s property market has shown to be strong with 31 suburbs recording growth in house prices in the first quarter of 202110.

Read our guide for more information on investing in the Gold Coast here. 

 

The Sunshine Coast is located in south-east Queensland and is approximately 100km from the Brisbane CBD. Consisting of many prominent suburbs in Queensland11 including coastal areas such as Coolum Beach and Maroochydore, to more inland areas such as Bli Bli and Buderim. 

The Sunshine Coast is also home to Noosa, the most expensive property market in Queensland and presents plenty of opportunities for property investors. For the past few years the Sunshine Coast has been one of the top locations for internal migration and the pandemic in 2020 only increased it’s demand, with the housing market achieving an annual growth of 7.7% in March 2021. 

Unlike the others in this list, Cairns is located in Far North Queensland and although offers a vastly different lifestyle, it is still an ideal location to look at getting your investment property. Home to both the Great Barrier Reef and the Wet Tropics Rainforest, Cairns has shown to be both a great tourist destination and a regional hub especially for the food and agribusiness, and energy sectors.

Cairns has historically been a great destination for property investors, due to the demand in housing and high gross rental yields recorded. As of April 2021, units have recorded a gross rental yield of 7.0% and houses 6.3%12, making this a great investment opportunity for those looking to receive a high rental return. 

Queensland Investment Property Taxes

When buying an investment property in Queensland there are some tax considerations that you will need to consider when first purchasing your investment property. In Queensland, you will need to pay transfer (stamp) duty on any property that you purchase. You can use our handy calculator to understand more about transfer duty and how much you may need to pay here.

You will also be required to pay land tax on your property each year if your property is worth $600,000 or more. Visit the Queensland Office of State Revenue website for more here. 

We are here to help

If you’re looking to purchase an investment property and you think Queensland is the right market for you, speak to your local Mortgage Choice broker to understand what you can afford and what location may be right for you. 

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