Thinking of investing in the regional Queensland property market?
You’d be forgiven for being cautious, given the travails of mining towns in the state, where headlines as recently as 2016 screamed: ‘Property investors lose 50pc in QLD mining towns’ and worse.
Fast forward a few years and there is optimism in the tropical air, as headlines speak for themselves: ‘Regional QLD property markets back in business with buyers’. Back in business indeed, with a host of regional centres recording a surge in demand.
But where exactly are the best regional investment areas and why are they performing?
Is regional Queensland booming?
To be clear, not all regional centres and towns in the Sunshine state are booming – but there are signs of recovery, especially in coal mining towns which are reviving as the coal price climbs. But this is only half the story – Queensland is the number one destination for inter-state migrants, with the subtropical climate and laid back lifestyle proving to be strong drawcards. Queensland’s population has also grown steadily recently, but is projected to climb steeply in the future to reach 7.21 million by 2036.
Like other regional property markets across Australia, the unaffordability of metro markets has driven buyers and investors to relocate to or invest in Queensland. How can one argue when the median house price in Bundaberg is just $296,000, and $270,000 in Rockhampton? Here, the ‘ripple effect’ is also at play, where proximity of areas – like the Sunshine Coast, north of Brisbane – offer many or all the amenities of a capital city, and piggyback off this proximity.
Best regions in Regional South East Queensland to invest in property
Queensland’s Sunshine Coast and South East Queensland are currently the standout regions for regional property investment, with both areas proving attractive for Sydney and Melbourne investors.
Overall the Sunshine Coast has recorded growth in dwelling values of 5.3 per cent to March this year, with the suburbs of Buddina, Forest Glen, and Noosa Heads all posting gains of 13 per cent or more last year.
Other regional Queensland investment property hotspots
Mining towns in regional Queensland are back on the property investors’ radar after many posted double digit gains over the past year. This includes Moranbah in Central Queensland, which has advanced 22 per cent over the year, while the median house value in the Isaac region had increased by 12 per cent. Unemployment is also down across much of this mining rich region, which is a positive sign.
Other areas to watch are Bundaberg and Fraser Coast, which are both developing into thriving regional hubs with diverse local economies and centres of employment. The port is due to be redeveloped as part of the Bundaberg State Development Area (SDA) and tourism to the nearby Great Barrier Reef is also increasing.