There’s no doubt property is booming across Queensland, with prices skyrocketing for sales and leases in every property market.
This trend has led to growth in places like the Gold Coast and Sunshine Coast, where prices are growing much faster than in Brisbane. And where increased housing demand has led to greater infrastructure projects and more appeal for commercial property.
Most analysts believe property prices will slow down or decrease by the end of 2022. This is predominantly due to affordability issues and tightening of credit, along with increased interest rates causing financial strain for property owners.
But for now, demand for quality remains, and many investors (residential and commercial) have started looking outside the major centres of Brisbane, Gold Coast and Sunshine Coast to find bargain properties that will bring great returns.
So, where are they looking, and why?
- Townsville – $25 billion in infrastructure spend, affordable prices, high yields, low vacancy rates
- Rockhampton – affordable property with good yields and low vacancy
- Bundaberg – low median house price (under $350,000 as at September 2021) with high growth in the past five years
- Fraser Coast – increase of 10% residential property price growth in past five years
- Toowoomba – new infrastructure spend is set to increase, attracting commercial and industrial businesses to the region
- Douglas – 22% residential property price increase in the five years to September 2021
These figures will impact both residential and commercial property markets and getting the timing right for investment is imperative.
And it doesn’t matter what the market is doing, investors need to make smart choices – and that includes basing purchases on several things, including affordability, a strong and diverse local economy, and government investment in infrastructure. If you don’t have these, the investment will be a risk.
If you want to know more, or you want advice for your next commercial investment property, get in touch with the team at McGees today.