Most real estate news have lately been about the return of net interstate migration to Queensland from NSW and Victoria, where its residents cash-out and buy cheap in SEQ. However, reports show something different.
It appears that Queensland’s population growth is mostly due to net overseas migration and net interstate migration even contributes to its decline.
Across Australia, net overseas migration is increasing with about 86,500 new migrants in the March quarter. This growth rate is double the pace the country has seen in recent years.
About 32,600 moved to New South Wales, 31,000 to Victoria and 11,600 to Queensland. More overseas migrants are moving to Sydney, Melbourne and SEQ.
Others believe SEQ shows great value compared to Sydney and Melbourne in terms of return of interstate migration, household incomes, housing price differential, improving job prospects, better rental yields and property value growth.
However, Sydney and Melbourne housing values are over inflated because of overseas buying and the subsequent FOMO. Melbourne is currently the Chinese buyer’s favourite.
17% of apartments sold in Australia were bought by overseas buyers while they account for 11% of detached houses sold in the country.
In Melbourne, 25% of apartments are sold overseas while 15% of Sydney’s apartment stock is purchased by overseas buyers. 14% and 9% of houses in Melbourne and Sydney are purchased overseas, respectively.
The housing values difference between Sydney/Melbourne and SEQ is that the former’s economies are strong while Queensland’s is not. The biggest pull are jobs and wage growth, where Sydney and Melbourne beat SEQ by an increasingly wider margin.
If SEQ gets more pull, housing demand and dwelling values will grow in earnest as well. However, this is why residential values in Brisbane are still at a standstill.
Those who are selling houses in SEQ may not expect buyers from Sydney and Melbourne to come to them. It is important that the product and price has a better market watch.
The growth in total employment mostly in the health sector does not indicate a stronger economy. This is the reason why the government is pulling overseas migration again – to increase our intake and inflate demand to superficially protect housing values.
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