Internal migration and relative affordability during the pandemic have spurred investment and population growth in Queensland, as detailed in the latest ANZ CoreLogic Housing Affordability report.
Queensland experienced the highest annual population growth rate among Australian states and territories, reaching 1.8% over the year to March 2022. This increase of approximately 92,000 people is the largest since 2012. The rise is attributed to record interstate migration combined with fewer residents leaving the state.
The comparative affordability of housing in Brisbane and throughout Queensland, when compared to other capital cities, may have contributed to increased migration into the state through early 2022, leading to rising property prices.
ANZ Senior Economist Felicity Emmett stated: “The drivers of a soft rental market at the onset of COVID-19, including closed international borders, reduced interstate migration and job loss have now reversed. For Queensland in particular, greater relative affordability and a desire for more space through the pandemic drove a shift to lifestyle markets and higher-than-usual interstate migration in 2021."
“Increased rents are the result of demand and supply factors. Stronger demand for rentals from migration and higher levels of household formation, coupled with limited levels of rental supply, have driven vacancy rates to record lows, and resulted in declining rental affordability across the state,” Ms Emmett added.
While rents have been rising strongly nationwide, Brisbane recorded the highest increase in capital city house rents by October 2022 at 13.6%. Across Queensland's regions, there was an 11.7% rise in house rents and a 13.3% increase in unit rents over the same period.
For buyers, housing values in Queensland surged by 42.7% between August 2020 and June 2022 after a long period of price stability during the previous decade. This rapid price increase over 23 months was unprecedented in more than two decades across Queensland.
Despite some favorable market conditions for home buyers this year—with dwelling values decreasing by 5.5% since peaking in June 2022—the sharp rise in interest rates has increased mortgage servicing costs.
Eliza Owen, Head of Research at CoreLogic Australia, emphasized balancing rent and house price factors against social challenges related to affordability for both buyers and renters: “Queensland has long been a top destination for Australians moving around the country; it has so much economic diversity and the Brisbane Olympic Games will only add to growth and prosperity. It is key that housing supply keeps up with the growth of the state so affordability constraints don’t deter people moving there or erode the lifestyle of the Sunshine State,” Ms Owen remarked.