Throughout the first half of 2021, Queensland’s property market has seen exceptional momentum.
With property transaction records being beaten on a monthly basis, a tussle between housing supply and demand has developed – amidst a frenzy of local consumer demand and interstate migration.
Australians flocking to the Sunshine State
Speaking at PEXA’s recent PropertyX Connect Series conference in Brisbane, Kirsty Chessher-Brown, Urban Development Institute of Australia (UDIA) Queensland CEO, says the State’s population growth is the highest it’s been in 16 years – and it shows no signs of slowing down.
“People in New South Wales and Victoria are going to continue coming to Queensland – particularly the south east,” Ms Chessher-Brown said.
And the lockdown weary arrivals have clearly preferred destinations.
“The Gold and Sunshine Coasts are the main beneficiaries of this trend – and will continue to be in the months ahead.”
Battling to meet the demand
A variety of factors are presenting challenges within the landscape, amidst this high-volume period.
Though there are obvious economic benefits generated by the current market surge, according to Chessher-Brown, land shortages are hindering the progression of developments required to support this population rise, with this potentially having further knock-on effects.
“We’re dealing with a supply crisis – and this will inevitably transition into a housing affordability crisis, if it hasn’t already, at the current rate.
“Every week that passes by, there’s another news story about someone being locked out of the property market or someone living in their car. We have a problem we need to address.”
The property sector eagerly awaited the delivery of the 2021-22 Queensland Budget – tabled in State Parliament on Tuesday 15 June 2021.
Chessher-Brown’s budget wish-list, shared in late May, was simple – “from the UDIA’s perspective, we’re hoping to see no new property taxes or charges introduced, as well as no increases to existing measures.”
Treasurer Cameron Dick presented a budget which included the establishment of a $1 billion Housing Investment Fund to drive new supply – support current and future social dwelling demand.
“Given the housing and rental availability crisis unfolding across Queensland, social housing was also a deserving winner in the State budget,” Ms Chessher-Brown said.
However, she added that it would have been good for dedicated and significant efforts funded that address the root causes of the housing shortage.
Navigating ongoing land availability, rising housing unaffordability and low vacancy rates are evidently key challenges facing industry.
And it’s clear the months ahead will be crucial as the sector looks to consolidate.