Real Estate guru John McGrath names South East Queensland as the beneficiary of Sydney and Melbourne downturn in 2019.
As the 2019 McGrath Report lands fresh on our desks, the ever present forecasts of South East Queensland and Brisbane carrying the downturn of Sydney and Melbourne have been backed up by the findings of the report.
It looks like a number of factors are coming together to make South East Queensland the big potential winner for 2019.
The Gold Coast, Brisbane, and Sunshine Coast markets have all been mentioned in the report as very attractive prospects to investors thanks in part to being the very likely home of the largest influx of interstate migrants for the 2019.
Economic Growth Raising the Prices
The report complements a lot of our findings over the final months of the 2018 period, all pointing towards SEQ being able to capitalise as we see the continuation of the declining Sydney and Melbourne markets.
A key ingredient to any emerging market is strong economic growth and a stable and growing employment market which the Southeast has already seen the beginnings of with the mid-year budget announcing the biggest planned spend on infrastructure since the 2011 floods recovery.
The report points out that with $45.8 billion allocated over 4 years the capital works program will stimulate economic growth, encourage private investment and create tens of thousands of jobs with 38,000 estimated in 2019 alone. Throughout 2019 the areas economic growth is scouted to enjoy an increase from 2.5 to 3% since FY17.
13% Property Price Growth
Looking towards the future the report also cites economic forecaster BIS Oxford Economics mid year estimation predicting a 13% property price growth by 2021, stating more of the growth will happen in that year.
Hard facts that the report has picked up on include the median price margin between Brisbane and Melbourne being the largest in Australian history and between Sydney and Brisbane the largest in 15 years according to Corelogics latest stats.
The level of affordability and Brisbane offering a similar median wage means Brisbane is primed for future growth and is becoming the most attractive choice for interstate migration.
As for John McGrath’s Top Tips for 2019 he touched on a number a number of inner city suburbs as being highly attractive to inter-state migrants including Hamilton and Bulimba.
Annerley stood out as one of the top picks as the inner city population heads further out and the satellite city Springfield Lakes was the big winner for the outer suburbs.