Record numbers looking for homes in Queensland
Not since 2003 have there been so many people leaving New South Wales and Victoria in droves for the more affordable pastures of Queensland.
The latest ABS population data reveals that over the December 2017 quarter, 15,322 residents left New South Wales and moved to Queensland.
In the same period 7,112 Victorians migrated to Queensland. In both cases, these numbers are the highest quarterly results recorded since December 2003.
December 2017 also recorded the highest quarterly number of residents moving from South Australia & ACT to Queensland since December 2004.
Highest net interstate migration since 2005
Queensland’s net interstate migration figure (taking into account people leaving Queensland) in the December 2017 quarter was 7,733. This is the highest quarterly result recorded since December 2005. It’s also a 57% increase over the 2016 December quarter result.
Over the year to December 2017, net interstate migration to Queensland was over 22,500 – the highest result in more than a decade.
NSW & QLD compared:
“It’s a trend we’ve seen played out before,” said Ironfish Head of Property, William Mitchell.
“As Sydney and Melbourne become more unaffordable, more and more residents make the move north to Brisbane and increasingly the Gold Coast too. When residents look at what your money buys you in Brisbane and the Gold Coast, as well as the added bonuses of a warmer climate and amazing lifestyle, the decision becomes a no-brainer.
“As the above graph highlights, there is a very close correlation between people leaving New South Wales and people arriving in Queensland. The December 2017 quarter data shows a sharp incline of migration to Queensland, and this is a very telling sign for the property market over the short to medium term.”
Net interstate migration:
Migration adding pressure to property prices
But with greater numbers of people looking for homes, it can also mean greater pressure on property prices.
Earlier this year, an analysis by CBRE of historical data revealed that as interstate migration to Queensland increases, median Brisbane home values have risen alongside.
For example, in 2002 the median Brisbane home price equated to 41% of a Sydney home. After interstate migration began to surge, peaking in 2003 – Brisbane home prices were able to reach as much as 78% of median Sydney home prices in 2008.
As more and more people are drawn to the affordability of South East Queensland, and its lifestyle advantages, industry experts are tipping Brisbane property prices to increase and once again narrow the price gap compared to Sydney to Melbourne.
Reporting on the December 2017 quarter population data, Dr Andrew Wilson, Chief Economist at My Housing Market (and formerly of Domain) said:
“No surprise that Brisbane home rental vacancy rates for both houses and units are falling sharply… Higher house and unit prices likely to follow.”
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