Queensland property markets to watch this spring

Queensland property markets to watch this spring

Brisbane, Queensland (24 August 2017) Mackay, Ipswich and Springfield have been identified by leading property group Raine & Horne as the Queensland property markets to watch this spring, traditionally the busiest selling season of the year.

“There are signs that real estate markets in regional Queensland will enjoy a robust spring selling season, with Mackay set to be a standout,” said Steve Worrad, General Manager, Queensland, Raine & Horne.

“Queensland’s affordability is a major appeal for owner-occupiers and investors, with values starting at less than $200,000 in some regional centres. This is significantly less than the stamp duty on some properties in Sydney and Melbourne.

“With a median dwelling price of $490,000 and improved vacancy rates, Brisbane will attract more southern state investors, too, as the selling season clicks into gear.”

Central Queensland

Many of the workers servicing and providing maintenance to the planned Adani Carmichael mine will be located in Mackay, according to Des Besanko, a director of seven Raine & Horne offices in Brisbane and regional Queensland.

“This workforce will help underpin real estate activity in Mackay,” Mr Besanko said.

Mackay’s economy is also supported by primary industries such as sugar and ethanol, with four sugar mills and many farms employing significant numbers of locals in the region^[i].

“Some of Australia’s largest cattle farms are in the Mackay region. Then we have national parks, the Great Barrier Reef, islands and numerous untouched beaches that are supporting a growing, local tourism sector,” said Mr Besanko.

Despite the positive longer-term outlook for the Mackay economy, Mr Besanko, who is also a Fellow of the Institute of Public Accountants (IPA), said that some property oversupply must be absorbed.  

“We’ll get through this absorption phase before transitioning into a growth stage later in the 2017/18 financial year. Consequently, there will be growth of between 2-5% for the Mackay real estate market in the 2017/18 tax year,” said Mr Besanko.

South-east Queensland

Within the corridor between Goodna and Ipswich there are terrific opportunities for entry-level property buyers over the next year, noted Mr Besanko.

“It’s possible to buy established 3-bedroom homes in the high $200,000s in the Goodna area,” he said.

“If you can extend your budget, newer 4-bedroom homes on decent-size blocks begin from the low $400,000s.”

Springfield, which was built as part of Greater Springfield, Australia's largest master-planned city, is also worth considering, according to Mr Besanko.  

“The commercial footprint of Springfield is twice the size of the Brisbane CBD,” Mr Besanko said.

“This immense footprint may not be needed any time soon. However, there is significant room for growth in Springfield, which is within Brisbane’s western corridor.”

The Department of Transport and Main Roads has planned and preserved land for a proposed passenger rail line extension between Ipswich and Springfield.^[ii]

“There is an opportunity for Brisbane to expand massively in the western corridor, and infrastructure such as the rail connection and Mirvac’s massive retail precinct, Orion Springfield Central, demonstrate the longer-term residential and commercial prospects for Springfield,” said Mr Besanko.

“If you're looking to include some longer-term assets in your investment portfolio, Springfield, with a median $410,000 for houses and $495,000 for apartments, could be worth a look. Moreover, you’re getting rental yields of 9% for houses and 6% for apartments.”

Brisbane CBD

In the short term, Mr Besanko expects Brisbane CBD real estate values to stabilise further.

“There is a hangover from an increase in apartment supply, which has been overstated by some commentators. Yet, Brisbane still has a lot going for it,” he said.

“Median prices are a long way behind Melbourne and Sydney and we’re about to get a casino precinct in the CBD. It’s going to create more tourism, and over time, the market will absorb any oversupply.”

For further media information contact:

Steve Worrad, General Manager, Queensland, Raine & Horne on 0498 071 991

Des Besanko, Director, Raine & Horne Brisbane Central, Springfield, Ipswich, Goodna, Mackay, Moranbah, Mackay Beaches and Raine & Horne Commercial Mackay on: 0419 86 0129