Qld a hotspot for property investment

While NSW still stands at the top state for property investment, there is a battle for the second spot taking place.

According to research from Money.com.au, Queensland is set to take over Victoria as the second most popular investment state in Australia, with 36 per cent growth over the year in investor activity.

“Queensland is on the verge of dethroning Victoria as the nation’s second-biggest investor market. There were 48,531 investor loans issued in Queensland, just shy of the 48,812 loans issued in Victoria, and the odds are that these numbers will flip next month and put the Sunshine State ahead,” said Peter Drennan, Money.com.au’s research and data expert.

The national average for investor growth was 21 per cent, placing Queensland’s growth far higher. Western Australia saw a 32 per cent increase and South Australia, 27 per cent.

Queensland has come a long way, seeing a substantial spike in investor activity. This time last year, the state made up 22.4 per cent of investor loans, while Victoria comprised 26.2 per cent

The data found that the average investor loan in Queensland is also growing, climbing 14 per cent year on year, from $490,875 to $560,104. In comparison, the average investor loan in Victoria has grown 5.3 per cent in the same period, from $535,432 to $563,632.

Money.com.au’s home loan expert, Mansour Soltani, has described Queensland as “the new promised land”.

“Many property investors are leaving Victoria in favour of states with lower taxes. Queensland is emerging as the new promised land. It has everything property investors look for including a strong local economy, population growth, expanding regional markets, and ongoing infrastructure projects,” he said.

“There are also many regional markets in Queensland, such as Townsville, Bundaberg, and Gladstone, offering low entry costs. Investors can still purchase homes for around $500,000 and achieve solid rental yields of 5–10 per cent or more.”

Despite the potential for opportunity, it still pays to be diligent. “Cheap doesn’t always mean good,” said Soltani.

So, what’s driving this substantial growth in investment? According to Money.com.au, there are four key factors:

1. Rising rental yields in regional Queensland: Increased demand for rental properties and limited supply are pushing up rental yields in Queensland’s regional cities. In areas like Bundaberg and Gladstone, rental yields have risen to 10 per cent or more year on year.
2. Infrastructure development: Major projects, including Brisbane’s preparation for the 2032 Olympics and the Cross River Rail, along with new housing developments in Brisbane’s outer suburbs and regional towns, are contributing to soaring property values and providing long-term growth prospects for investors.
3. Interstate migration: People are moving from more expensive cities like Sydney and Melbourne to more affordable regions like Brisbane, Perth, and regional areas. ABS data showed that around 107,000 people moved to Queensland from interstate in the year to March 2024, while only around 76,000 people left to go to another state.
4. Lifestyle appeal: Queensland’s warmer climate and access to beaches make it a desirable location for both residents and investors. Popular tourist areas like the Gold Coast and Sunshine Coast continue to attract investors looking for vacation rentals or high-demand properties.

[Related: Investor lending nearing 2022 peak]

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

To reach Jack, email him at: This email address is being protected from spambots. You need JavaScript enabled to view it.