CoreLogic calculated that over the past year, 25,350 residents relocated from other Australian states to settle in the Sunshine State.
This has heavily influenced the sentiment and positivity of the property market in Queensland, accelerating demand across several of its sub-markets.
When considering the housing market, population growth is always a very reliable gauge to judge demand. As demand increases, sale and rental prices will rise and the time that each property spends on the market will decrease.
Interstate migration contributes to this increased demand more than many other avenues of population growth as it has a strong relationship with purchasing activity. While the demand is a positive indicator for the local property market, it’s important we have the infrastructure in place to support the growth.
This includes ensuring appropriate levels of infrastructure works covering transport, education, health care and essential services are all keeping up with the rate of growth. Queensland’s current infrastructure is failing to keep up with population growth, with the risk that it will fall further behind with above-average numbers of interstate migration.
So, what does this mean for prices? If infrastructure falls behind, certain locations within markets will flourish as they become more desirable due to their infrastructure and accessibility, while other pockets will drag behind with increased needs that aren’t being met.
Most interstate migrants arrive in Brisbane and other areas of South East Queensland such as the Gold and Sunshine Coasts. This is primarily due to the concentration of labour markets located in the South East of the state. Presenting great opportunities for home buyers and investors to see good gains in well situated and selected properties as a result.
Will The High Rates Of Interstate Migration Continue In 2021?
With interstate demand reaching new highs in 2020, all of the current signs point towards this trend continuing in 2021.
Queensland’s improving economic conditions, relatively affordable housing and positive lifestyle factors are the primary factors for the state’s popularity. The COVID-19 pandemic is accelerating interstate demand with many buyers wanting a slower pace of life and a more manageable mortgage.
At a time when overseas migration has been unsettled due to the border closures, interstate migration and the rate of natural increase will be the primary drivers of population growth across the country. Positioning Brisbane and South East Queensland to one of the better-performing markets in the country in the coming 12-36 months.
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