Revealed: Six reasons why Queensland became a bigger investor market than Victoria
Queensland is rapidly cementing its place as a key investor market, with investor loan numbers growing at nearly five times the rate of Victoria’s
Queensland is officially a larger investor property market than Victoria, ranking second only to New South Wales. It’s the first time the Sunshine State has held this position since the ABS began tracking loan numbers and values by state.
Queensland is rapidly cementing its place as a key investor market, with investor loan numbers growing at nearly five times the rate of Victoria’s — 24 percent annually compared to Victoria’s 5 percent.
This article was first published in the print edition of AccomNews. Read it HERE
Analysis by Money.com.au shows that if we apply the same annual growth rate (24 percent), Queensland will have 10,338 more investor loans than Victoria this time next year. The average investor loan in Queensland has also grown by 11 percent year-on-year, from $483,429 to $536,638. By comparison, the average investor loan in Victoria has only grown by 2.7 percent year-on-year, from $539,012 to $553,667.
Money.com.au’s Property Expert, Mansour Soltani, says Queensland offers the perfect mix of lifestyle, affordability, and growth opportunities for investors.
“With lower taxes, strong migration, affordable regional markets, lucrative rental opportunities, and a booming infrastructure pipeline, Queensland is cementing its position as a property investor’s dream,” he says.
So, what’s driving this shift? Here are the six key reasons:
1. Property investors pay fewer and lower taxes in Queensland Investors are flocking to Queensland for its significantly lower property taxes compared to Victoria. For example, the general land tax for properties worth $800,000 in Victoria is around $3450 per year, compared to just $2500 per year in Queensland. Additionally, Victoria’s tax-free land value threshold is only $50,000, whereas in Queensland, it’s a generous $600,000 for individuals. Victorians with second homes now also pay a new flat tax of up to $975 as part of the state’s COVID Debt Repayment Plan. The Victorian government has recently introduced a temporary stamp duty concession for off-the-plan strata properties. This may benefit investors by reducing upfront costs in the short term.
2. Queensland has higher interstate migration rates. Queensland has had the highest net interstate migration in every quarter since 2017, according to data analysed by Money.com.au. Strong migration leads to more infrastructure spending, higher rental yields and lower vacancy rates — factors that attract property investors. In the year to March 2024, Queensland gained a net 30,930 residents from interstate, while Victoria’s net gain was just 537.
3. Queensland’s regional markets offer strong growth opportunities and rental yields. In some Queensland regional towns, investors can buy properties under $500,000 and make profits from rents from the outset, says Mansour. Regional markets like Townsville, Cairns, Mackay, and Gladstone have seen rental yields rise by 5-20 percent year-on-year, driven by limited housing supply and increasing demand.
4. Short-term and holiday rentals. Queensland’s appeal as a tourist destination creates lucrative opportunities for short-term and holiday rentals. While GST and additional levies apply to these types of properties, Brisbane-based buyer’s agent Andrew Pizzino says they can still deliver significant returns. “For example, a one-bedroom apartment in Noosa can generate $1000 per night during peak season, covering costs for the remainder of the year, including outgoings and taxes. However, most investors choose to hold long-term leases on these properties for six to nine months of the year, then convert them back to the short term rental market during peak seasons to offset low-season losses,” he says. South East Queensland accounts for two-thirds of all short-term rentals in the state, making it a hotspot for short-term rental investment.
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5. The infrastructure boom in Queensland Queensland’s infrastructure pipeline is another major draw for investors. There are currently over 300 transport infrastructure projects in the state, plus hundreds of new residential developments in Brisbane’s outer suburbs and regional towns. Some of the biggest public infrastructure projects include Brisbane’s 2032 Olympics preparations, the Cross River Rail, the Gold Coast Light Rail Extension, and the Bruce Highway Upgrade, which spans the corridor from Brisbane to Cairns.
6. Queensland’s lifestyle appeal. Mansour says Queensland’s warm climate, beaches and natural landscape make it an attractive place to live, invest, and retire. “The ‘Queensland effect’ is driving strong demand for both owner-occupied and investment properties, especially in regional areas and along the coastline where many Australians will retire,” he says.
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