Regional Queensland still delivering for savvy property investors
A resilient South East Queensland property market holds allure for real estate investors looking for positive cash flow and solid long-term capital growth prospects.
Fuelled by a strong resources sector, high rent yields and major infrastructure developments, regional Queensland has proven largely resilient as interest rates have risen and deterred buyers in many other markets.
Managing Director of the Cameron Bird Group, Jack Bird, said investors needed to be mindful that even though the national property market was in decline, there were other markets that were still performing well.
“To date regional Queensland is proving to be resilient amidst the downturn and in fact several regional locations recorded continued price growth in the first quarter of 2022,” Mr Bird said.
“With interstate migration into the state continuing, sales activity is strong, and supply and demand imbalanced, with demand outweighing supply.
“Strong investment in the economy and the resource sector bouncing back truly puts Queensland in a strong position for growth in this year and through 2023.”
Dwelling values across CoreLogic’s combined regionals index were up 41.1 per cent from the pandemic trough to the June peak, compared with a 25.5 per cent rise across the combined capitals index.
Regional Queensland, driven in large part by the south east, was up 19 per cent of the past 12 months.
“Investors should be aware of the difference between a declining market and the rate of growth slowing; Queensland properties are still growing in value, if admittedly slower than what we have seen over the past two years, however, it is just the rate of growth that has changed.”
Yields and yards
Mr Bird singled out markets such as Gympie, Toowoomba, Hervey Bay, Bundaberg, Gladstone, and the Sunshine Coast as investor markets with capital upside, strong rental income potential and frequently larger block sizes.
“With vacancy rates in most Queensland regional towns now well under 1 per cent there truly is a rental crisis and the demand for new rental properties coming on the market has never been stronger.
“With the industry and resource sector bouncing back strongly in cities like Gladstone that have a robust and diverse economy, complemented by recent investment in the region, its providing a strong and sustainable market recovery, so we are continuing to see price growth while capital cities are experiencing a slowing market,” Mr Bird said.
“Gympie is another rising market that has huge new infrastructure projects on the go, like a new highway bypass that will provide fast access to Noosa/Sunshine Coast within 30 minutes, connecting country living easily accessible to the best beaches in Queensland.
“Again, Gympie has extremely tight vacancies (under 0.3 per cent) and offers affordability and high yields.”
The Regional Australia Institute said this week that housing affordability will see large parts of regional Queensland more insulated from property price drops than cities.
The Regional Australia Institute also forecasts a continued movement of people from capital cities into regional areas.
Toowoomba is among the regional towns bucking the national trend, with home values up 0.7 per cent in July.
Large parts of Queensland have benefited from remote and flexible working arrangements more than any other state, and there are excellent opportunities to buy property in the Sunshine Coast, and just 40 mins north to Gympie, and coastal Hervey Bay (near Fraser Island) Bundaberg and Gladstone.
“With prices that are very affordable, now is the time to be looking to invest.
“We have just secured some off-market cash flow positive properties, namely new three-bedroom townhouses extremely well priced at just over $300,000,” Mr Bird said.
“Investors would not be able to build these properties new for these prices.”
The economic investment committed to this region over the next decade is significant, including developments planned in the health, energy, defence, agriculture, tourism and mining sectors.
Regional SE Queensland’s key investor lures:
- High rental yields
- Extremely tight vacancy rates
- Tenant lifestyle
- Price growth stronger than capital cities
- Population growth/migration
- Strong market activity
- Low days on market
These investments will result in strong employment growth, which in return will encourage population growth and continue to drive the property market forward.
“With our government pushing for renewable energy projects like Australia’s first hydrogen plant in Gladstone, investment commitments of this nature will provide huge economic growth for the region,” Mr Bird said.
Since inception, the Cameron Bird Group has prided itself on providing a higher level of customer service than its competitors, as well as rigorous research identifying investment options with the highest possible cash flow.
“Throughout South East and regional Queensland, we can connect you with the best investment property for your portfolio,” Mr Bird said.
“Decades of experience has taught us how to identify emerging hotspots and evaluate properties based on their potential for capital growth, demand, rental yield and market stability.
“Importantly, we will travel the journey with you, from construction through to securing tenants with rental yields that will produce the best cash flows and extra return on investment.”
The Group has been in business for more than 40 years and forged long-term relationships with hundreds of investor clients.
“Many of these investors are repeat buyers, some have now purchased eight or more properties.
“Helping and guiding our investors build a profitable portfolio and reaching their retirement goals sooner is incredibly rewarding.
“We have learnt that not one investor is the same, everyone has a different borrowing capacity and criteria, and we work very closely with our investors to present property opportunities that suit the individual.
“We have extensive experience negotiating with builders and developers, with long term relationships, and use our purchasing power of the Cameron Bird Group, to secure great deals,” Mr Bird said.