A boom in migration, the lure of the Olympics and favourable economic conditions will protect southeast Queensland’s property market to 2032 and beyond, according to a new market report.
K Property Insights – Southeast Queensland Buyer’s Report – an exclusive quarterly report compiled by real estate agency Kollosche, in conjunction with industry analyst Michael Matusik – states that any market downturn in the region will be mild and relatively short-lived.
Current market conditions are predicted to improve from the second half of 2023, buoyed by a drop in interest rates, which the report states could come as early as November. The improved economic conditions will give a boost to consumer confidence leading to further ramping of buyer interest.
A return of interstate migration is set to add to already significant population growth, with the data showing an additional 100,000 people annually will make southeast Queensland their home between now and the Olympics, with the majority destined for the Gold Coast.
While the long-term impact of hosting the 2032 Summer Olympics remains to be seen, the short-term influx of tourism and athletes leading up to the Games will create a surge in demand for accommodation close to Olympic venues, increasing rental values, which in turn attracts investors.
According to Kollosche Head of New Projects Jamie Harrison, the report paints an enticing picture for developers seeking markets with growth potential.
“The Gold Coast is already at a 30 per cent deficit when it comes to new housing supply versus demand and, as the report clearly shows, that is only going to widen,” Mr Harrison said.
“Land is scarce on the Gold Coast, particularly so in beachside locations, so the only option is to build up,” he said. “Heightened demand paired with the reduced capacity of construction companies only puts further pressure on existing availability, leading to robust price growth.
“The excess of pent-up demand creates exciting opportunities for developers. Those who are aligned with key builders and who can deliver a product that speaks to the market will be well-positioned moving forward.”
Mr Harrison said a lot of projects had come to market in the past few years that no longer suited buyers’ needs or desires, driving a requirement for developers to be better informed about local markets.
“Kollosche has invested heavily in these regular Insights reports because we want to arm developers with the information they need to be able to get ahead of the curve,” Mr Harrison said.
“We want to share our in-depth knowledge of the local market with developers so that they feel confident that they are delivering the right product to the market, in the right location.”
