Welcome to Top Tips Tuesday!
This week’s tip is for those property investors looking to invest in 2022 and not sure what is the best location.
We all know that the traditionally strong markets over the last 10 years of Melbourne and Sydney have slowed down.
And it’s those other regional markets of Brisbane, Adelaide, and Perth that are really performing very well and giving investors, great returns.
So out of those three cities where would I be focusing on? Well, you’ve got to look at the supply and demand, driven by population growth.
In Queensland, we’ve got the fastest interstate migration in Australia at the moment.
In 2022 we’re forecasting 105,000 new residents into Queensland with the majority of that going into the Southeast Queensland corridor from the Sunshine Coast, greater Brisbane down to the Gold Coast.
When looking at the vacancy rates in these areas we can see that they are very low, in some areas below 1%.
Finding a rental property is very challenging at the moment in South East Queensland. It means our rents are going up and our yields are getting higher.
Then we need to take into account the overseas migration coming into Australia. In 2022/23 it is forecast that 160,000 new residents will come into Australia, which is massive on top of the interstate migration.
So that’s going to put a lot of pressure on the property market in terms of supply for rental and for sale properties.
This will help protect prices and give investors great rental yields based on rents continuously going up, because there is not simply not enough supply of new properties hitting the market to meet this demand.
The other big factor about Southeast Queensland is we’ve got the Olympic games coming in 10 years’ time.
When you look back at the previous cycle, when Sydney hosted the games in 2000, it was really the start of the boom times.
So there’s a lot of positives for the Southeast Queensland corridor.
I hope that’s helped give you a better understanding of the property market in South East Queensland.
If you’d like to know more about investing in South East Queensland, feel free to book a time in my calendar by clicking here.
Regards,
Geoff Tomkins
Buyers Advocate
PH: 0404 852 781
