Regional Queensland real estate set for bumper 2015
Media release - 6th January, 2015
The real estate market in regional Queensland will enjoy stronger market conditions in 2015, according to leading property group Raine & Horne.
“Market conditions are improving in Brisbane and on the Gold Coast, and now the smart money is starting to chase further afield for the prospects of capital growth and decent yields in other regional centres,” said Steve Worrad, General Manager Queensland, Raine & Horne.
“Major hubs such as Toowoomba are set to benefit from major infrastructure improvements, while smaller centres such as Woodford and Kingaroy will enjoy the benefits of factors such as lower interest rates and the breaking drought.
“Once we get past the Queensland election, which was called by the Premier this afternoon for 31 January, homeowners and investors considering the sale of a regional property in Queensland can expect excellent selling conditions in 2015,” said Mr Worrad.
Andrew Lynch, Principal of Raine & Horne Toowoomba is predicting that the recent launch of the Brisbane West Wellcamp Airport will have a dramatic impact on the economy and real estate markets in the western Queensland town.
“The airport, which supports large passenger aircrafts, is a first for Toowoomba and will prove a massive boost for tourism and business,” said Mr Lynch.
“As it stands, Toowoomba is a multi-industry town with strong service and healthcare businesses and a robust agricultural sector. It is also a strong education hub with the University of Southern Queensland (USQ) and the private schools led by Toowoomba Prep and Toowoomba Grammar employing hundreds of locals.
“The airport will magnify Toowoomba’s excellent economic prospects as a regional hub by bringing more businesses, tourists and investors to the town, which in turn will underpin real estate values and rental yields.”
Since the November launch of Wellcamp Airport, a number of large commercial developments in Charlton on the western side of Toowoomba have attracted enquiries from businesses considering relocating from Brisbane, according to Mr Lynch.
“Significantly, Charlton is not far from the airport,” said Mr Lynch, who is predicting the residential market in greater Toowoomba will grow by between 5 and 8 % in 2015.
“The median price range in Rangeville and Centenary Heights is around $400,000 and properties are selling like hotcakes.”
To illustrate, Mr Lynch sold 10 Karyn Street, Centenary Heights for $400,000 in days.
“Another agent predicted the property would sell for $365,000, however we had interest from 23 parties and multiple offers pushed the price to $400,000,” he said.
Likewise, new developments close to USQ, on the town’s west side, are proving popular with yield-hungry investors.
“Suburbs to watch include Darling Heights which is very close to USQ and shops, while the shortage of housing in that area, rental yields of 5% are very achievable.
“Brand new four bedroom homes with double garages in Darling Heights are selling for $460,000 and renting for between $480 and $490,000 a week.
“Throw in the depreciation benefits of owning a new investment, and a residential property in Darling Heights will stack up in 2015,” said Mr Lynch.
In the past, the Moreton Bay region has attracted a significant number of investors, although Jill Garth, Principal of Raine & Horne Woodford, is reporting the re-emergence of first time buyers as a consequence of lower interest rates.
“While the Woodford market has previously been dominated by investors, there is a noticeable trend towards young couples and a re-emergence of first home buyers,” said Ms Garth.
“There is a definite and clear shift in the demographics of the area, which was once a very aged population. The more recent call for further interest rate cuts is also fuelling activity.
According to Ms Garth, Raine & Horne Woodford’s last three sales were made by young working couples either buying a first home or an investment property. This includes the sale of 27 Durundur Street, Woodford, a gorgeous 4-bedroom post war Queenslander, which is built on a big 1,200 square metre block.
“It went under contract for $320,000 after only 20 days on the market,” said Ms Garth, who declares that the Woodford real estate market has bottomed.
“This assessment is based on increasing stock turnover, as buyers seek to enter the market in increasing numbers ahead of any further price rises.”
Low interest rates and strong rents are also giving investors a rare opportunity to positively or neutrally gear an investment property in Woodford, according to Ms Garth.
“Yield-hungry property investors will enter the market in greater numbers in 2015, as prices bottom out and rental growth continues,” she said.
“Raine & Horne Woodford has listed a terrific 3-bedroom home on a 1/4 acre that is rented for $280 a week with an asking price of $239,000. This represents a healthy rental yield of 6.2%.”
South Burnett region
“If the rain continues, the business and real estate prospects for the region look very good in 2015,” said Mr Allery.
Famous for peanuts, Kingaroy has a diversified economy, according to Mr Allery, which helps to make the town resilient to the ravages of drought.
“We have one of the most significant pork abattoirs in Australia, Swickers Kingaroy Bacon Factory, which employs 500 people. This in turn supports a number of major piggeries in the area, along with the grain producers, which provide feed to the piggeries,” he said.
“There is also the Stanwell Power Station that employs about 450 locals, as well as the ancillary businesses which support its operations.”
Despite Kingaroy’s economic diversity, real estate affordability is a by-product of the 2014 drought according to Mr Allery, who is tipping property values could appreciate by as much as 5% in 2015.
“It’s a great buying market, with some investors starting to make their presence felt,” said Mr Allery, who confirms that entry-level homes in Kingaroy are available for less than $200,000.
“Good, solid 3-bedroom wooden houses start from $190,000 in Kingaroy, with weekly rents of $220 achievable,” said Mr Allery.
“Meanwhile 4-bedroom, 2-bathroom homes such as 19 Reservoir Street, Kingaroy,which sell for around $350,000, are proving popular with upgraders.”
For further media information contact:
Steve Worrad, General Manager Queensland, Raine & Horne on 0498 071 991
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400