Weekly Real Estate Market Update with Leigh Martinuzzi
CoreLogic reports that over the year ending August 2021 there have been 598,000 house and unit sales across Australia. This is an increase in sales by 42% on the previous year and the highest number of annual sales since 2004. In Queensland, we’ve seen an even greater spike with sales up from last year by 54% with a total of 146,687 dwellings being reported sold in the year ending August 2021. Other than Western Australia and the Northern Territory this is the third biggest increase in the country.
There is a clear reason for the massive spike in sales in Queensland and as I wrote in another article this week much of our growth in sales and property prices have to do with a massive surge in buyer demand. According to the REA buyer demand index, demand for property in Queensland has risen by 60% since pre-pandemic levels. From what I can see even though demand is HOT in other states Queensland seems to be leading the way.
Of course, low-interest rates have a great part to play in the current Australian property bubble. Australian’s are said to have more money in the bank. Unable to spend their hard-earned cash in other places, Aussie’s have saved an estimated $200 billion in the past year. Other than paying off credit card debt and buying cool tech online many are looking to put their money into assets that are likely to generate a higher return than leaving it in the banks. With property prices setting records one place to put our money is in real estate.
One major reason for Queensland’s booming demand is due to the increased interest and migration from NSW and Victoria. It was said that in 2020 alone 13,000 people shifted from Victoria to Queensland with most of them choosing the Sunny Coast to call home. And we expect these figures in 2021 to be much the same if not more as lockdowns continue that have more frustrated people looking elsewhere for quality lifestyle locations.
And finally, affordability plays a big role. Try finding a house or unit close to a beach in NSW and Victoria that offers the same value for money that you can get here on the Sunshine Coast… impossible! Dollar for dollar, the value just doesn’t compare. $1 million spent in Sydney is unlikely to get you anything near comparable to what you can get up here. On top of that, for the lifestyle opportunities and space that many are now seeking, the Sunshine Coast is second to none.
The road map to recovery in both NSW and Victoria are underway and restrictions are already easing. It won’t be long, and we will see the Spring market in NSW and Victoria kick-off. This will cause a flow-on effect of southern sellers looking to make their move, cashed-up and ready to purchase here. For those of you thinking of selling, now is the time to start doing the groundwork as I’d expect the demand for property locally leading up to Christmas and into the new year is going to boom!
Preliminary Auction Results State by State. (Auctions/Private Sales)
- Queensland – =83% (141/1491)
- NSW – 95% (477/1742)
- Victoria – 89% (137/1119)
- ACT – 100% (23/46)
- South Australia – 92% (105/344)
- Tasmania – 100 (1/182)
- Western Australia – 100% (3/689)
- Northern Territory – 80 (5/28)
