Queensland has seen record low rental vacancy rates
Following the pandemic outbreak, it’s well-known that Queensland has seen record low rental vacancy rates and increasing median house prices across Queensland.
In any case, from viewing the most recent reports from the Australian Bureau of Statistics (ABS) it’s clear that with the increase of ex-pats returning from all over the world, it may add to the existing competitive property market.
The Appeal of Australia
Australia is home to numerous large and habitable properties, and this is one of the main reasons Australians have made their way back all through the pandemic.
COVID-19 has had a significant and devastating effect in the countries that are popular for Australian expats to live and this has been a driving force for them to return to their native country.
Unlike the United Kingdom and Hong Kong, Queensland offers wide-open spaces and properties that are less compact which makes Queensland the ideal location for many returning expats.
Lifestyle is a major factor and Queensland offers so many lifestyle opportunities that you can’t get anywhere else. In regards to the pandemic, ex-pats are returning earlier than they planned because Australia as a whole is one of the safest countries to live in.
Expected Impact on the Property Market
A recent Australian Bureau of Statistics report demonstrates a consistent ascent of global migration to Australia since restrictions were first presented in April 2020. The data shows that December 2020 saw the biggest number of global migrants and Australians getting back home since April 2020.
With Queensland inhabitant number increasing, regardless of whether it’s ex-pats getting back or the individuals who wanted to move abroad presently waiting; comes additional demand for properties.
With the current low vacancy rates, the Reserve Bank Australia (RBA) cash rate cut and higher middle house costs across Queensland, it’s anticipated to generate a considerably more competitive market.
Furthermore, not only are more ex-pats getting back home (with plenty of incentives for them to do as such), they are arriving back with considerable wealth because of more lucrative jobs abroad, lower tax rates and a fairly good exchange rate right now.
In light of this, their barrier for entry into the Queensland property market is much lower than typical. Expats with rental properties may decide to live in them once they return, which will further bring down the available rental properties on the market.
Dealing with this Impact
Because of the growing number of ex-pats getting back, and general demand across both the sales and rental market, immediate incentives are expected to create an equilibrium in the market’s supply and demand.
The Real Estate Institute of Queensland (REIQ) called on the Queensland Government to abolish stamp duty, as it’s inhibitive to both buyers and sellers. It’s estimated that about 340,000 property transactions every year are sworn off because of the presence of stamp duty.
Its abolishment will most likely increase economic activity, move individuals from renting to investing, and maximise housing choices for anybody wishing to live in Queensland.
Additionally, prolonging the First Home Buyers Grant to establish housing empowers returning ex-pats and locals to enter the property market.
Paul Hill Realty believes that introducing first home buyers to the broader property market would reveal to first home buyers more options for affordable housing, while further invigorating economic activity and real estate transactions.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on…
Paul Hill Realty has built up a reputation of giving exceptional service as well as going above and beyond the normal expectations that a property investor can expect.
Paul Hill Realty are Specialists in Residential Property Management on the Northern Gold Coast from Southport to Ormeau and west to Wongawallan. However, know the complete South Eastern Qld area well so can list any property in South East Qld.
Get in touch with one of the Paul Hill Realty Hope Island experienced team members by calling 07 5577 1888.