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Affordability is a key reason that NSW investors are looking north. Further to this, Queensland is reporting strong rental yields.
As reported by Westpac, the top 10 Queensland investment suburbs for NSW residents are:
- Alexandra
- Boyne Valley
- Amberley
- Coomera
- Bahrs Scrub
- Athol
- Hervey Range
- Beach Holm
- Basin Pocket
- Moorina
Westpac’s managing director of mortgages, James Hutton, said there has been a “consistent flow” of NSW residents investing in Queensland properties in the last two years.
“The popularity of regional centres like Mackay and Gladstone reflects their affordability and strong rental yields – averaging 5.6 per cent for houses and 6.9 per cent for apartments across both cities,” said Hutton.
“NSW buyers are playing both sides of the field – investing in Queensland while holding firm at home.”
The easing of the cost-of-living crisis and the cutting of interest rates in recent months are reportedly spurring increased investor activity across the state.
Over the past year, investors have accounted for over a third of new loans, said Westpac senior economist Matt Hassan. They accounted for just a quarter of these loans during the pandemic.
“Many are moving ahead on plans previously on hold due to cost of living constraints, with lower interest rates and the prospect of more rate cuts an added drawcard,” said Hassan.
The rise in activity has also resulted in a surge in popularity for regional areas. Many of these hubs have become hotspots for investors.
“Investor interest in Queensland is shifting. While the Gold and Sunshine Coasts remain popular, Mackay, Gladstone, Toowoomba and Townsville have all seen a surge in interest, and some of the strongest price growth nationally over the past year,” Hassan said.
“Low vacancies and solid rental yields are clearly part of the appeal of these regional hubs.”
It isn’t just investors leveraging the opportunities presented by Australia’s regional towns.
With the cost-of-living crisis stubbornly impacting consumers, families are fleeing the cities and settling in regional areas.
Recent data revealed that in Greater Sydney, for every three families who left the city, just one moved back in, with an inbound-to-outbound ratio of 0.31.
Melbourne experienced similar trends, with an inbound-to-outbound ratio of 0.62.
Regional areas of the country are experiencing a surge in relocators. The non-city areas of Queensland, for example, have an inbound-to-outbound ratio of 2.48.
Businesses are also realising the opportunity with regional Australia quickly becoming the nesting ground of the country’s companies.
“We’re seeing a real shift in where business growth is happening across Australia – and it’s not just confined to the big CBDs anymore. Our analysis shows that outer suburban areas and regional hubs are emerging as powerful engines of growth, driven by a combination of lifestyle appeal, lower overheads, and changing work habits,” said Tapt founder and CEO Elon Datt.
[Related: Relocation revolution: Aussies saving by downsizing]
