We know that Brisbane property values have increased by over 22% in the last year, but who is driving this demand for Queensland property?
Home loan data allows us to identify who is buying and therefore driving demand for property.
Figure 2 shows that at the beginning of Covid-19 there was a dip in the value of home loan financing across all buyer types as the national lockdown hindered transactional activity.
This created uncertainty surrounding job security and also economic instability.
However, the bounce back and acceleration were swift across all buyer types.
The recovery was supported by the Federal Government’s HomeBuilder Grant which provided a timely boost to housing demand during an economically challenging period.
Owner-occupier loans skyrocketed 112% from May 2020 to the peak in January 2021.
While the value of the home loans has dropped in recent months, it remains close to record highs with upsize buyers being the biggest force of housing activity across Queensland.
What this means for some is that despite fetching a strong price for their property, their next purchase may prove more difficult to secure in such a high-demand environment and amongst escalating prices.
Investor home loan values hit the highest value since 2007, overtaking first home buyers in March 2021, a trend that has continued.
We are also seeing more investors are preferring established homes over new properties.
After an initial increase, first home buyer loan values have fallen as affordability could be becoming challenging for some, and investors in the market have increased competition.
“Queensland’s offer of relative affordability compared to other major capital cities, the lure of lifestyle and more recently Queensland winning the 2032 Olympic bid all provide key selling factors for increased investment within the state.”
Dr. Nicola Powell, Chief of Research & Economics, Domain
The rest of Australia wants a piece of the Queensland pie
Interstate buyers have always placed Queensland at the top of their wishlist – a traditional retirement haven. However, escalating internal migration, as a result of changing working patterns from all life stages, has brought to fruition a lifestyle that was considered a dream for some.
Blues are interested in converting to Maroons
66% of inquiries on Domain to Queensland are coming from New South Wales.
While the flexible life is beneficial for some, it does prove mixed levels of opportunity: 3 in 5 high-wage workers have the opportunity to work from home whereas less than 1 in 5 low-wage workers have the same flexibility.
“Significant shifts in the population like this don’t occur often.
What we’re finding is that people are fast-tracking their decision to move, taking the opportunity to live and work with flexibility and where they choose.
Whilst there is no questioning that cities will always be home to the biggest population, we’re witnessing a surge towards regional and less metropolitan areas which are experiencing the biggest impact of internal migration.”
Dr. Nicola Powell, Chief of Research & Economics, Domain
Millennials and Gen Z take over Brisbane
People in the prime of their working years (25-44 years) are the biggest interstate group moving to Brisbane.
“As a trend, young people tend to migrate to capital cities, in this instance, Brisbane, for career opportunities, university education, access to more infrastructure and services, and to make the most of the nightlife and hospitality options that come with an urban lifestyle.”
Paul Arthur, CEO, Queensland Sotheby’s
Pre and early retirement moves fast-tracked across the rest of Queensland
Relocation to the rest of Queensland, outside of Brisbane, is led by Gen X followed by Millennials, and Boomers.
“There is a significant shift in population from city to regional Queensland led by people in the middle-age bracket (45-64 years).
Those in this pre and early retirement stage are fast-tracking their plans, shifting towards regional areas with sprawling landscapes and more space around their homes […]
Often experiencing urban life in their younger years, trend analysis suggests that this age group prefers to move to rural and coastal areas of Queensland for a slow-paced and relaxed lifestyle to enjoy with their families.“
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Who is driving demand for Queensland property?
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We know that Brisbane property values have increased by over 22% in the last year, but who is driving this demand for Queensland property?
Figure 2 shows that at the beginning of Covid-19 there was a dip in the value of home loan financing across all buyer types as the national lockdown hindered transactional activity.
This created uncertainty surrounding job security and also economic instability.
However, the bounce back and acceleration were swift across all buyer types.
The recovery was supported by the Federal Government’s HomeBuilder Grant which provided a timely boost to housing demand during an economically challenging period.
Owner-occupier loans skyrocketed 112% from May 2020 to the peak in January 2021.
While the value of the home loans has dropped in recent months, it remains close to record highs with upsize buyers being the biggest force of housing activity across Queensland.
What this means for some is that despite fetching a strong price for their property, their next purchase may prove more difficult to secure in such a high-demand environment and amongst escalating prices.
Investor home loan values hit the highest value since 2007, overtaking first home buyers in March 2021, a trend that has continued.
We are also seeing more investors are preferring established homes over new properties.
After an initial increase, first home buyer loan values have fallen as affordability could be becoming challenging for some, and investors in the market have increased competition.
The rest of Australia wants a piece of the Queensland pie
Interstate buyers have always placed Queensland at the top of their wishlist – a traditional retirement haven. However, escalating internal migration, as a result of changing working patterns from all life stages, has brought to fruition a lifestyle that was considered a dream for some.
Blues are interested in converting to Maroons
66% of inquiries on Domain to Queensland are coming from New South Wales.
While the flexible life is beneficial for some, it does prove mixed levels of opportunity: 3 in 5 high-wage workers have the opportunity to work from home whereas less than 1 in 5 low-wage workers have the same flexibility.
Millennials and Gen Z take over Brisbane
People in the prime of their working years (25-44 years) are the biggest interstate group moving to Brisbane.
Relocation to the rest of Queensland, outside of Brisbane, is led by Gen X followed by Millennials, and Boomers.
Source: Read the full report- Domain’s Queensland Spotlight Report.
ALSO READ: What makes Queensland property so unique?
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