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Queensland really is the place to live. The Sunshine State is the nation’s fastest growing state, has record low unemployment, a strong economy and, according to the latest Real Estate Institute of Queensland (REIQ) median house prices, a very solid property market.

“Many Queensland regions have experienced double digit median house price growth over the 12 months to end the June this year,” REIQ chairman Peter McGrath said.

According to the 2006 Census, Queensland is still the nation’s fastest growing state. Our population is up 20.2 per cent on the 1996 Census count with about 3.9 million people now choosing to live in the Sunshine State. About 1,500 people continue to migrate to Queensland from interstate every week.

Source: REIQ

The three most populous states recorded the largest population growth in the five-year period to June 2006. Queensland experienced the largest growth (462,600 people), followed by Victoria (323,600) and New South Wales (242,000). In the previous five-year period the largest gain in population was in New South Wales (370,500), followed by Queensland (290,300) and Victoria (244,600). The fastest population growth in the five years to June 2006 was in Queensland, with the population increasing by 2.4% per year on average. Western Australia also experienced fast growth, recording an average population increase of 1.6% per year over the five years to 2006.

Source: A.B.S.

Brisbane has already experienced more than half of last year’s 7 per cent price growth in the past two months, and auction clearance rates were 58 per cent last month – the highest since September 2003.

There has also been a record increase in the number of Australians planning to buy a residential investment property in the next year. The number is up 35 per cent from the September 2006 quarter to 779,000 in the December 2006 quarter, research by Wizard Home Loans has revealed.

“The market across Queensland is strong… we are seeing activity that would normally take twice as long happen in a few months,” property researcher Michael Matusik said.

Place Estate Agents co-principal Tim Douglas said there was nothing looming that could derail the strong trend. “Demand for inner-city is just getting greater and greater. Rental demand is very strong too,” he said.
“From what I have found, things start in the inner-city and ripple to the outer suburbs.” Mr Douglas said there was a worryingly low supply across the board for homes and units for sale in Brisbane.

Homes in the $300,000 to $450,000 bracket have jumped about $50,000 in value and a similar 12 per cent leap has occurred across the board since late last year.

“I listed a property in Red Hill. The owner said he was happy to get $360,000 and we sold it for $445,000 – there were six offers on it,” Mr Douglas said.

Queensland led the country in the best February ever for mortgage sales, according to the latest figures out this week from Australia’s largest mortgage broker, AFG.

Source: Courier Mail

MORE and more people are finding out what locals have always known – Cairns is a great place to live. Australian Bureau of Statistics research released yesterday reveals that in the 12 months from June 2005, the population increased 3.2 per cent from 128,666 to 132,765 people.

The city experienced the fourth largest growth in the state behind Brisbane, Gold Coast and Ipswich.

“Cairns is a desirable place to live,” Mayor Kevin Byrne said. “We have a good quality of living, an international airport 12 minutes from the city, growing education sector, wonderful public facilities and a tourism industry that shows steady growth.

The ABS figures show more than 76,000 people moved to the Sunshine State in the 12 months to June 2006. Of them, 25,800 moved from interstate, 21,400 from overseas and 29,200 due to a natural increase. More than 20.6 million people now call Australia home, up by 265,700 people on the previous year.

Cr Byrne forecast more people would continue to discover the lifestyle Cairns offers.

“My word. There is no indication that any time soon development growth will slow down,” he said.”Cairns will keep growing.”

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DWINDLING affordability looks set to force more first home buyers out of the property market in 2007, paving the way for an investor-led recovery. The tighter the rental market, the more scope investors have to raise rents. This is particularly beneficial for investors who bought during the upside of the previous property cycle in 2001-03 when capital growth was strong and rental returns were 3 to 4 per cent.

They have now held their properties long enough to experience the second phase of the cycle, when capital growth has slowed but rental returns are firming around 4 to 5 per cent. With improved cash flow, they are in a solid position to buy again and take advantage of the next full growth cycle. This cycle began in the second half of 2006 and will start to accelerate in 2007.

A change of trends in rents and interest rates will also influence this investor-led recovery. In 2006, rents rose and interest rates did too, so there was no impetus for investors to re-enter the market. In 2007, rents will continue to rise because of the growing first-home-buyer affordability crunch. However, it’s probable that interest rates will stabilise or, ideally, fall.

The Reserve Bank must take decisive action to reduce interest rates if there is to be a sustained improvement in these figures.In turn, lower interest rates will further improve cash flow, luring more investors back into the property market.

Source: theage.com.au