Queensland on the brink!
Sunshine State set to overtake Victoria as Australia’s second largest property investor market
Queensland is on the brink of overtaking Victoria as the nation’s second-largest property investor market, with recent data from Money.com.au revealing a dramatic shift in investor loan distribution.
Traditionally, New South Wales has held the top spot for investor loans, followed by Victoria and then Queensland. However, with Queensland now accounting for 23 percent of all investor loans over the past year, it is fast closing in on Victoria’s 23.3 percent.
The new print edition of AccomNews is available now. Read it HERE
Peter Drennan, Research and Data Expert at Money.com.au, notes the rapid change. “Queensland is on the verge of dethroning Victoria as the nation’s second biggest investor market,” he stated.
“There were 48,531 investor loans issued in Queensland, just shy of the 48,812 loans issued in Victoria. The odds are that these numbers will flip next month, putting the Sunshine State ahead.”
This contrasts sharply with a year ago when Victoria accounted for 26.2 percent of investor loans, while Queensland held 22.4 percent.
The average investor loan in Queensland has increased significantly, rising by 14 percent year-on-year from $490,875 to $560,104. In contrast, Victoria’s average loan grew by only 5.3 percent, reaching $563,632.
According to Mansour Soltani, Home Loans Expert at Money.com.au, this shift is partly due to policy changes in Victoria. “The flat-rate levy and additional taxes on landholdings in Victoria have made the state less appealing to investors, who are increasingly looking to Queensland for better opportunities,” he said.
Queensland’s rapid investor growth outpacing national trends
The trend in Queensland aligns with a broader investor boom in Australia, but the state is leading the charge with a remarkable 36 percent year-on-year growth in investor loans, nearly double the national average of 21 percent. By comparison, Western Australia saw a 32 percent increase, while South Australia experienced 27 percent growth.
The Sunshine State’s appeal extends to first-time homebuyer investors, who increased their activity by 23 percent over the past year, opting to invest rather than buy a property for personal use. Queensland’s owner-occupied loans also grew by 12 percent year-on-year, far outstripping other markets, with no state outside Queensland exceeding 6 percent growth. New South Wales, meanwhile, saw no growth in this sector.
Factors fueling Queensland’s investor boom
Several key factors are driving Queensland’s rise as a property investment hotspot:
-
Rising rental yields in regional areas
Increased demand for rental properties, coupled with limited supply, has pushed up rental yields in regional cities like Bundaberg and Gladstone, where yields have surged to 10% or more year-on-year. -
Infrastructure development
Major projects, including preparations for the 2032 Brisbane Olympics and the Cross River Rail, as well as housing developments in Brisbane’s outer suburbs and regional areas, are boosting property values and presenting long-term growth prospects for investors. -
Interstate migration
Queensland’s affordability is drawing people from more expensive cities such as Sydney and Melbourne. The Australian Bureau of Statistics reports that around 107,000 people moved to Queensland from other states in the year to March 2024, while approximately 76,000 left for other destinations. -
Lifestyle appeal
The warmer climate, beach access, and popular tourist destinations like the Gold Coast and Sunshine Coast continue to attract investors looking for high-demand vacation rentals and residential properties.
The future of Queensland’s property market
As Queensland closes in on Victoria’s investor market share, the state’s combination of attractive rental yields, strong infrastructure growth, interstate migration, and lifestyle appeal make it a prime location for property investors.
While Victoria grapples with policy changes that have prompted some investors to look elsewhere, Queensland appears ready to capitalise on the opportunity and take the lead in Australia’s dynamic property market.
