The influx of people moving from New South Wales and Victoria to the Sunshine State, and Bundaberg in particular, is a hot topic of conversation. And why wouldn’t people want to call Bundaberg home?
More sun, less traffic and the potential to upsize. We’ve always seen this migration during our winter months but typically it was the retiree market. In the age of remote working, we are seeing more young families turning their lifestyle dream into reality. This is really what’s fuelling the booming property market. Interstate migration into Queensland through 2020 was almost double the decade average and more than 58,000 people have moved to Queensland, during the six months prior to March 2021.
Our area has been ready for growth for so long, and it turns out a global pandemic is just what was needed to kick it into gear. But it’s not just interstate migration. Investor interest has been quiet for some years now but with record low interest rates and robust rental yields, investors have been well and truly enticed back into play.
A look at the data shows that demand from investors really kicked into gear from January this year. Since then, we’ve been witnessing both an increase in the volume of email enquiries from investors, as well as growth in the investor share of new lending.
The latest ABS data puts investor lending at 29.1 per cent of total new lending, and investor enquiries on property portals (realestate.com.au) have now increased by 90 per cent. This is a far cry from the 20 year low seen the middle of 2020. The data suggests investors are having to dig deeper to account for price growth across the market, but they may also be capitalising on the boost to borrowing power afforded by lower interest rates and low rental vacancies increasing yield.
The question on everyone’s lips is, “how long is this going to last?” Who knows! But what I can say with confidence is, it’s not showing signs of slowing down any time soon.