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How did Qld overtake the Victorian investor market?

How did Qld overtake the Victorian investor market?
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It may have come as a surprise that the humble Sunshine State overtook the second-most populous state in Australia in investment activity. How did this happen?

Queensland has climbed its way to become the second-most popular property investment market in Australia, knocking Victoria down to third place.

While it’s a long way off topping NSW, it may have come as a surprise to see it perform as well as it has.

According to Money.com.au, investor loans across Queensland grew 24 per cent annually, while Victoria grew by just 5 per cent. If the trend continues, Queensland will have 10,338 more investor loans than Victoria by this time next year.

So how did it happen? According to Money.com.au’s property expert Mansour Soltani, there are six key reasons:

  1. Lower taxes for property investors: Land tax for properties worth $800,000 in Queensland is $2,500 annually, compared to $3,450 in Victoria.
  2. Higher interstate migration: In the year to March 2024, Queensland welcomed a net 30,930 residents from other states, far exceeding Victoria’s 537.
  3. Regional market opportunities: Markets like Townsville, Cairns, and Gladstone offer properties under $500,000 and rental yields increasing by 5–20 per cent annually.
  4. Short-term rental potential: Tourist hotspots like Noosa deliver lucrative returns, with apartments generating up to $1,000 per night during peak seasons.
  5. Infrastructure boom: Over 300 transport projects, including Brisbane’s 2032 Olympics preparations, are boosting the state’s investment appeal.
  6. Lifestyle appeal: Queensland’s beaches, warm climate, and relaxed vibe are driving demand from investors and retirees alike.

“With lower taxes, strong migration, affordable regional markets, lucrative rental opportunities, and a booming infrastructure pipeline, Queensland is cementing its position as a property investor’s dream,” said Soltani.

[Related: Investor loans surge 19% as Qld overtakes Victoria]

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