Qld becomes the second-largest investor market

Data from Money.com.au showed that in September, Queensland recorded 4,593 investor loans which is nearly 700 more than its Victorian counterpart which represents a 19 per cent annual growth rate.

Some of the reasons for the shift may be due to the recent flat-rate levy for property investors and the additional taxes on landholdings – which have pushed investors to look elsewhere.

Money.com.au home loans expert Mansour Soltani said that Australia’s property market dynamics are shifting.

“With the highest property tax rates in the country, investors are leaving Victoria in favour of states with lower taxes and lifestyle appeal, like Queensland,” Soltani said.

According to Money.com.au experts, Queensland has everything property investors look for including population growth, a strong local economy, ongoing infrastructure projects and the possibility of expanding to the regional market.

Data from the Real Estate Institute of Queensland (REIQ) showed that over the March 2024 quarter, the median price growth of dwellings grew across the states with units getting a 5.09 per cent increase to $578,000 and houses rising 2.07 per cent to $735,000 – which is a 10.2 per cent and 8.46 per cent increase annually.

Additional data from Hotspotting has identified four new Queensland suburbs in their top 10 million-dollar hotspots which have shown capital growth, a positive economic and market fundamentals – forecasting further growth in price performance over the years.

Dwellings in the Queensland regional area might also be appealing to investors as prices are still lower than in capital cities, with higher rental yields and lower vacancy rates.

The Brisbane 2032 Olympic Games are also expected to boost the property market as it is forecast to inject $8 billion into the Queensland economy.

Historically, cities that have hosted the Olympics such as Los Angeles, Sydney or Barcelona have seen a rise in property values – Brisbane may experience similar gains piquing investors’ interest even more.

Nationwide, Western Australia kept the lion’s share, with 43 per cent of annual growth in loan numbers. NSW topped the third place with a 20 per cent rise in loan numbers.

Despite the numbers remaining small, with 1,093 loans for the year, the Northern Territory saw a 50 per cent increase in loan numbers with 99 investor loans in September – up from 66 loans a year ago.

“The Northern Territory housing market presents a compelling opportunity for investors. While house prices have remained stable or declined, rental yields, particularly in Darwin, are among the highest in Australia,” Soltani said.

While Soltani recognises that Western Australia has had a standout market in 2024, he predicts a higher activity in the eastern states in 2025.

“My prediction for 2025 is that as interest rates drop, buyer activity will ramp up again in the eastern seaboard states – NSW, Vic, and Qld. Meanwhile, Western Australia and South Australia, which are becoming saturated markets, may start to stabilise,” he said.