State of Markets - QLD July 2012

QUEENSLAND

Gold Coast set for a revival

The Gold Coast is set for a residential revival on the back of huge increases in infrastructure spending, according to Colliers International.

With infrastructure spending at a record level, having increased by almost $4 billion in two years, this is an indication that property will bounce back, said Colliers International’s director of residential project marketing, Tony Holland.

With a current total of $13.7 billion in infrastructure funding, investors should expect to see more buyers flocking to the Gold Coast market and capital growth to accelerate.

“History has shown that in areas where a high infrastructure spend occurs, property sales volumes and prices tend to recover and increase shortly afterwards, when the benefit to the area is realised,” Mr Holland said.

Investors eye QLD as vacancy rates tighten

Investors are edging back into the Queensland market as vacancy rates continue to fall across the state, new data show.

“Until very recently, we had many potential first home buyers and investors sitting on the sidelines while our market and economy recovered from the natural disasters last year, which has put pressure on our rental market,” Real Estate Institute of Queensland (REIQ) CEO, Anton Kardash, said.

“However, this pent up demand is now starting to dissipate, with the latest Australian Bureau of Statistics (ABS) data showing increasing numbers of investors and first-timers coming back into the market.”

According to the REIQ, ABS lending finance figures for February showed the number of Queensland investors was up significantly compared to the same period last year. The data also showed that demand from first home buyers and owner occupiers was also starting to increase.

“This more robust level of investor demand is good news for our rental market, given that more investors means more investment stock for renters to choose from,” Mr Kardash said.