Interstate migration, primarily from Sydney, is set to increase Queensland residential property values, the AFR reports.
An analysis by CBRE of historical data has shown that as interstate migration to Queensland increases, median Brisbane home values have risen alongside.
For example, in 2002 the median Brisbane home price equated to 41% of a Sydney home. After interstate migration began to surge, peaking in 2003 at about 40,000 – Brisbane home prices were able to reach as much as 78% of Sydney home price in 2008.
CBRE researcher Ally McDade says this process is now starting to happen again.
Currently Brisbane’s home price is about 43% of a Sydney home price, but interstate migration is surging.
“At June 2017, levels of interstate immigration reach the highest quarterly and annual growth since 2008, she said.
“As more people migrate to the Sunshine State, the equity wealth built in Sydney is transferred to Brisbane. The increase in demand, coupled with a higher perceived value, has historically driven Brisbane real estate prices higher.”
Analysis by property developer Stockland has also shown that most interstate buyers to Queensland are coming from NSW, followed by Victoria and South Australia.
“Historical trends clearly indicate that Brisbane is on the cusp of another jump in house prices, which we have been predicting for a while now,” said Ironfish National Housing Manager, Josh Ure.
“Areas such as the Gold Coast and inner Brisbane will benefit the most as they offer a higher quality of lifestyle coupled with downsizer appeal.
“Anyone who doesn’t own a property in these markets will be kicking themselves in a few years!”
If you would like further information on the Brisbane property market including further data on top performing suburbs or areas poised for growth in 2018, please download our latest quarterly market report.