Prior to COVID-19, the Queensland property market was a stage where they were expected to make strong growth. This was welcomed, as throughout 2018-19 the Brisbane property market was quite slow compared to Sydney and Melbourne.
Now with the effects of COVID19, Queensland is facing new challenges. Questions around housing values and market strength have started to be raised. In this article, we will give an overview of what has happened to the property market and what we can expect moving forward.
Expectedly, with COVID19 creating uncertainty within Brisbane and the other cities, we have seen housing values impacted.
A portion of housing demand in Queensland was generated from interstate and overseas buyers. With the Queensland borders being closed, housing demand has seen a dip. However to our surprise Brisbane housing values have increased by 0.3% in April, a 4.2% increase from the same time last year. Furthermore, unit values have increased by 0.5%, a 2.3% increase from April 2019.
Source: SQM Research
Property Investors are suggesting that Brisbane will be one of the best performing property markets post COVID19 due to the liveability, affordability, scale and future economic prospects.
Post Travel Ban
Queensland property has always been popular for overseas and interstate travellers. With the travel ban in place many listings have stayed up for purchase, due to the lack of interest from Queenslanders.
The affordability of the housing market in Queensland draws a lot of interstate migration, mostly from New South Wales. You can see in the below chart from Australian Business Statistics that Queensland had the highest interstate migration of 22,800 people during 2018-2019. This is a good indication that the QLD property market will bounce back once travel bans have been lifted.
Despite the current lack of transactions in Queensland, the property market is on the rebound. When people confidently return to work and travel restrictions are eased, we will start to see a recovery. The Queensland property market will benefit from more local travel by Australians and eventually from overseas travel later down the track.