2020 – the year the South East Queensland property market showed great resilience despite COVID-19
2020 – the year that was set to severely test the South East Queensland property market, yet the residential property market thrived and showed great resilience, the opposite of what most experts predicted.
Queensland’s property market continues to defy early COVID-19 predictions, with median house prices rising yet again for a second consecutive quarter across much of the state. Antonia Mercorella, CEO of the REIQ, explained that “as a result of the COVID-19 pandemic, not only has it haphazardly fluctuated consumer sentiment – that same unpredictability has seen Queensland’s property market perform in ways that go against all of the economic predictions that were made this year”.
An interesting development involves first-home buyers. There are twice as many looking to enter the market now then prior to the pandemic. Bureau of Statistics figures show that in September 2020, 13,000 first-home buyer loans were approved – that’s up 45.5 per cent when compared to the same month a year ago. It appears that many young Australians, chaffing against the confinement of living in lockdown with parents, housemates and siblings, are now seeking the independence of owning a home.
One silver lining of the pandemic is the positive impact it is having on savings, with many young people saving what they would have otherwise spent on travelling, going out or on gym memberships.
Nearly half of first-home buyers said they were more optimistic about entering the housing market than they were 12 months ago. This is due to factors such as house prices (38 per cent) and the opportunity to live in a new area (24 per cent).
HomeBuilder, one of the federal government’s grants, has drawn in purchasers who would have not traditionally considered new home and land packages. Low interest rates and flexible working arrangements has made proximity to the CBD less important than a year ago.
A further interesting change is the increased demand for large blocks fit for mansions. Those that provide close proximity to the coast while propped amongst the treey Gold Coast hinterland have been widely popular. Sales of acreage-size properties has doubled that of smaller lots over the past 12 months, according to data from the REIQ. Typically favoured by southerners migrating north looking for a place to retire in the sun combined with a more flexible workforce that COVID-19 has created, the hinterland demographic will be challenged. Andrew Henderson, Gold Coast zone chair for the REIQ, believes “that middle workforce, not retirees or hospitality workers, but those who can now work from home and only have to travel to an office one or two days a week, they may start to move in”.
Queensland’s lifestyle drawcard will continue to attract strong interstate migration, creating competition for local buyers. Despite a strong market, low stock and high demand drive extraordinary competition. Queenslanders, now more than ever, are enthusiastic to grab their slice of pie before interstate home hunters travel north.
Additionally, some of Brisbane’s school catchment areas have seen house prices skyrocket over the past 12 months. Proving that along with a great view and good size, vicinity to the right education receives a gold star. With Wynnum West State School, Ipswich Central State School, Cannon Hill State School, Tingalpa State School, Marsden State School, Flagstone State Community College and Aspley State School all making the ‘Brisbane top 10 school zones for house price growth’ list, our local offices have been kept busy with buyers eager to purchase family homes in these catchment areas.
We welcome 2021 with open arms and are excited to see the South East Queensland property market continue to flourish.
Article extrapolated from:
Hughes, L. (2020). ‘Sales of acreage-size properties double that of small plots’, realestate.com.au, December 14. Article retrieved from https://www.realestate.com.au/news/sales-of-acreagesize-properties-double-that-of-smaller-plots/
Real Estate Institute of Queensland. (2020, December 14). Property market prospers despite pandemic and recession [Press release]. Retrieved from
https://www.reiq.com/articles/qld-property-market-prospers-despite-pandemic-and-recession/
Tilley, E. (2020). ‘COVID-19 fuels first-home buyer frenzy in south east QLD’, realestate.com.au, November 21. Article retrieved from:
https://www.realestate.com.au/news/covid19-fuels-firsthome-buyer-frenzy-in-south-east-qld/
Webb, S. (2020). ‘Brisbane auctions: Locals make desperate rush before Christmas and the borders reopen’, domain.com.au, November 16. Article retrieved from:
Webb, S. (2020). ‘How much it costs to buy in Brisbane’s school catchment zones: Domain report’, domain.com.au, November 26. Article retrieved from: