People are flocking to the state’s property market due to impressive rental yields and economic growth, according to Queensland Treasurer Curtis Pitt.
Mr Pitt highlighted recent Australian Bureau of Statistics data (ABS), which showed investor housing finance commitments reached $4.7 billion in value over the June quarter in 2015. This is nearly 15 per cent higher than the same period last year.
Housing commitments have not approached these levels in approximately eight years, when investor finance peaked at $5 billion in June 2007. According to Mr Pitt, activity is particularly high in Brisbane, where rental yields are more attractive than in other capital cities due to interest in townhouses, apartments and units.
“In recent years, we have seen steady growth in investor finance since early 2013, matched by moderate housing price increases,” he stated. “The steady growth in housing finance reflects ongoing confidence in the property outlook for Queensland.”
The news may encourage more people to consider buying or selling real estate. If so, contacting a local conveyancing expert or property lawyer is a crucial step in the process that helps to ensure transactions run smoothly.
Buyers are also benefiting from record-low interest rates in the country. The Reserve Bank of Australia voted to maintain the key economic indicator at 2 per cent in August, with two reductions of 25 basis points occurring already this year.
The latest figures from CoreLogic RP Data showed Brisbane home prices climbed 0.5 per cent in July, although year-on-year growth reached 3.9 per cent. Total gross returns on Brisbane property are 8.8 per cent, with the median dwelling value reaching $458,200.
Investors may consider the Queensland capital’s relative affordability as a positive, with properties in Sydney and Melbourne fetching asking prices of 72 and 24 per cent higher respectively.