Queensland tops HIA scoreboard
It’s a good time to be a property investor in the Sunshine State.
The Housing Industry Association of Australia has named Queensland as the property market’s top-performing state for the first time since 2007.
While HIA economist Tom Devitt said that picking one standout jurisdiction in Australia’s broader housing boom is difficult, he noted that more than twice the amount of interstate migration has been directed towards Queensland.
“Even in this strong market, Queensland has made the most of its opportunities,” he said.
HIA’s Housing Scorecard ranks the performance of each state across 13 key indicators, factoring in the level of renovations, construction migration and market activity.
According to HIA, in the closed-borders business environment of the COVID-19 pandemic, the high level of interstate migration proved to be the decisive factor that elevated Queensland above the rest.
“Other states have also seen a rise in interstate migration, but none as strong as Queensland,” Mr Devitt noted.
He said that this combination of strong population growth, migration trends, high levels of government stimulus and low interest rates has driven demand for new housing in Queensland to its current highs.
Meanwhile, “the loss of overseas migrants has been compounded by the loss of residents, pushing Victoria down to seventh [place]”.
“South Australia and Tasmania have also benefited from interstate migration and are experiencing record volumes of building activity, ranking second and third,” he said.
Parallel to Queensland’s ascension to the top of the table, Mr Devitt noted that Western Australia has been the biggest mover on HIA’s Housing Scorecard. The state has risen from last to fifth place in less than 12 months.
“The exodus of residents from Western Australia that has occurred for several years has been reversed and there are encouraging signs that the multi-unit market might also pick up,” he noted.
Mr Devitt also called out NSW’s apartment market as a surprise strength of the last 12 months.
“This is a very strong result given the adverse impact of the decline in overseas migration. It suggests that the underlying shortage of apartments in Sydney was greater than previously thought,” he said.
Looking forward, Mr Devitt noted that there is “very little separating the top seven jurisdictions and a return of overseas migration will assist in ensuring the housing market continues to pull the economy forward”.
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