Queensland’s real estate markets are all set to enjoy a healthy year with significant infrastructure investments, greater affordability and lower interest rates making it an attractive buy, said leading real estate group, Raine & Horne.
Investments such as the $21 billion Adani Carmichael coal mine, the $3 billion Queen’s Wharf, Westfield’s $1 billion development at Coomera and the $200 million extensions of Gold Coast Airport will be the main contributing factor for a strong market this year, the group said.
Raine & Horne, Queensland general manager Steve Worrad also believes that the preparations for the 2018 Commonwealth Games would lead to a higher demand for apartments within the state this year.
“Combined with low-interest rates and skyrocketing prices in Sydney and Melbourne, we have more buyers and investors focused on real estate opportunities in Queensland,” Worrad said.
Northern and Central Queensland expected to do well this year
Even property values in Northern Queensland is projected to get a boost from the construction of the Red River Zinc mine at Thalanga and the $13.1 billion ethanol project at Pentland, 100 kilometres south-west of Charters Towers, said Lisa Palmer, Principal of Raine & Horne Charters Towers.
“It’s anticipated the Pentland project will require an enormous workforce in the construction phase. Most of these workers are expected to be housed at Charters Towers,” Palmer said.
“In combination, these mining projects will create demand for housing in Charters Towers, where a 3-4 bedroom home sells for $250,000 and can earn rents of up to $360 a week, ”
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Meanwhile, in Central Queensland, the mining downturn has made real estate affordability within this region a reality.
“With a median house price of $275,000, Gladstone is very affordable,” said Mark Patton, Principal of Raine & Horne Gladstone.
“Other factors such as the spike in LNG production, more Australian cruise ships docking in the harbour and the Adani mine will help stabilise real estate values in our town. There is also a burgeoning aluminium-refining sector and Northern Oil’s burgeoning biocrude industry.”
“Therefore, we expect property values to pick up through 2017, making this an opportune time for owner-occupiers and investors to enter the market in a ‘destination location’ with outstanding potential,” Patton added.
Gold Coast investments to rock big time in 2017
Everybody’s favourite holiday destination, the Gold Coast is predicted to bring in massive investments that will underpin real estate values in Burleigh Heads, Mermaid Beach, Varsity Lakes and Miami.
“The Gold Coast City Council has also improved its approach to the approval of smaller residential developments, which has increased the supply of affordable real estate,” said Justin Smith, Principal of Raine & Horne Burleigh/Mermaid.
“The Council has cut red tape for many developments if they can see a benefit to the local community.
“This includes creating more urban café precincts, which is attracting a younger demographic to the region. They have more disposable income, which is flushing more money through the local economy, which in turn are helping to underpin demand for local real estate,” said Smith.
Meanwhile, in Brisbane, the real estate markets is driven by the price which makes buyers want to venture beyond preferred areas and boundaries.
“Currently clearance rates for on-site and in-room actions is 42 per cent increasing to 68 per cent in the post auction phase,” said David Bennett, Business Support & Development Manager/Auctioneer, Queensland Raine & Horne.
“Whether it’s Greater Brisbane, Logan or Moreton Bay the focus on price means the same bidders can turn up at an auction 20 kilometres away from the last sale they attended,” Bennett said.
