Queensland Australia, popularly known as the country’s Sunshine State. Numerous economy experts dubbed Queensland as the best place to invest property in the whole country right now. This can be attributed to the tight rental market and a lack of housing for a rapidly growing population. These are the right ingredients needed for the perfect property investment.
In this article, we’re going to look at Queensland Australia, and why you should invest in its properties. We’ll dive into what factors make Queensland a great investment, see all the pros it has to offer. Read on to find out more!
Queensland Facts and Geography
Before we go into why you should invest in Queensland, let’s look at a quick overview of the state and its geography.
Queensland is the second-largest state of Australia; right after Western Australia. Queensland covers approximately 23% of the whole continent, located in the northeast. It also shares territory boundaries with South Australia, the Northern Territory, and New South Wales. The total territory span of Queensland is 1,727,000sq. kilometres. For comparison’s sake, it is around 7 times bigger than Great Britain. Not only is Queensland big, but it also has a wide geographical variation within its borders.
Queensland’s Geography
Queensland is also known as the Sunshine State of Australia. This is due to its amazing climate. Local Queenslanders live a predominately outdoor lifestyle, due to the fantastic climate almost every day. The locals have a popular saying for the state; “beautiful one day, perfect the next.” Queensland features over 14-holiday destinations you and your family can visit and explore. You can visit serene rainforests, beautiful national parks, world-famous white-sand beaches, inland mountains, and even the great western outback plains.
Whether you’re looking for a holiday filled with activities, or just a relaxing time, you can find all of it in Queensland. For the economic side, Queensland has plenty of flatlands, perfect for farming. Queensland has a wide variety of agricultural products. These include wool, cotton, wheat, sugarcane, bananas, citrus fruits, pineapple, peanuts, and even beef. There are also plenty of mining exports such as coals and metals if you’re interested in investing in those industries.
Over 5 million people call Queensland their home. However, less than half of the population lives in Brisbane, the capital and metropolitan hub of the state. Most of Queensland’s population is located on the coastline. The coastline is a 7400km stretch that is bounded by the Torres Strait, The Gulf of Carpentaria, the South Pacific Ocean in the east, and the Coral Sea to the north.
Queensland’s History
Queensland is teeming with history and culture. Queensland has roots in both European settlers and the Indigenous people. The state features archaeological sites that date back as far as 30,000 years! Queensland was first discovered by European explorers during the 1600s.
Jan Carstens and Willem Jansz were Dutch explorers that first arrived in the Gulf of Carpentaria and the Cape York Peninsula respectively. However, European encounters weren’t officially acknowledged until
James Cook, an English lieutenant, arrived on Queensland’s east coast in 1770. A settlement was established in Brisbane, around 1825. The state of Queensland was officially born on June 6, 1851.
Queensland’s Pro-Business and Stable Economy
Queensland offers a wide variety of business advantages. These include a pro-business environment, a very supportive government, a stable economy, and a solid positive growth forecast. Other factors that make Queensland a great place to invest are its low operating costs, strategic location, and very skilled workforce.
All of these factors make up an ideal economic environment. The solid forecast growth also offers potential investors a long-term and safe investment climate. If you decide to invest in Queensland, you’ll enjoy plenty of benefits such as:
• A steady, diverse, and growing economy
• A highly competitive tax environment
• A solid and steady population growth
Queensland’s Diversified Economy
Queensland’s vibrant and modern economy is currently worth more than $360 billion. It is supported by a wide variety of industries; which includes a varied services sector. The economic growth of the state has mostly exceeded the national average in the past two decades. This can be attributed to trends such as the boom in resources investment, strong population growth, and upturns in LNG exports.
The mining industry also plays a huge role in the state’s economy. Mining activities made up 11.7% or $39.6 billion of Queensland’s economy in the years 2019 – 2020. Queensland has reserves of coal and bauxite that are amongst the largest in the whole world. These are also of high grade, making them high in demand overseas. The overseas exports of minerals, LNG, and coal made up around 81% of the nominal value of Queensland’s total merchandise exports overseas in 2019 – 2020.
After the mining industry, the largest contribution to Queensland’s economy from 2019 to 2020 was from the social assistance and health care industries. These industries accounted for 8.6% or $29.2 billion of the economy. The health care sector is also Queensland’s biggest employer. The sector was employing 354,700 employees in 2019 – 2020.
The health care sector has always been one of the biggest contributors to Queensland’s economy in the last decade. It has grown by around 66% in real terms. Job opportunities in the health sector are expected to increase due to the increase in population growth and demands for health services.
Another industry that is a major contributor to Queensland’s economy is the education and training sector. It contributed approximately $18.4 billion from 2019 to 2020; which 5.4% of the total. Tourism is also huge in Queensland. The state’s tourism sector is the 2nd largest in Australia. It accounts for 22.7% of the national tourism output. It also provides jobs for 145,400 workers from 2018 to 2019.
Queensland also has strong financial and professional services industries. When you combine these sectors, they account for around $41.9 billion of Queensland’s total economic output. These sectors have also provided jobs for 252,300 workers.
The second-largest employer in Queensland is the construction sector. It employed 245,100 people from 2019 to 2020. The construction sector contributed 8.1% of the total output, approximately $27.3 billion, to Queensland’s economy from 2019 to 2020. This makes the construction industry the third largest sector in Queensland.
Queensland and the COVID-19 Pandemic
We all know how the COVID-19 pandemic has negatively affected the global, national, and even local economies all over the world. However, due to Queensland’s strong and swift response to the crisis, the state managed to lessen the impact. They were able to maintain the necessary support lines to ensure that Queensland was able to recover economically, and as quickly as possible.
The 2020 – 2021 State Budget forecast for Queensland’s economy expects it to return to marginal growth; up to ¼ %. It then strengthens to 3 ½ % growth in 2021 – 2022. After the huge negative impact on Queensland’s labour market due to COVID 19, the employment and work hours’ statistics have bounced back since May 2020. The forecast for Queensland’s annual average employment growth is 1% in 2020 – 2021. This is a huge improvement to the previous forecast of a 3% fall stated in the C19-FER (COVID-19 Fiscal and Economic Review).
Queensland’s unemployment rate is forecasted to average around 7 ½% in 2020 – 2021. This is down from 8 ½ % from the C19-FER. It is expected to steadily improve in the next years, falling to 6 ½% in 2022 – 2023.
The pandemic has also affect Queensland’s overseas exports of services and goods. It is forecasted to fall by 11% from 2020 to 2021. However, it will rebound by 9 ¾ % from 2021 to 2022. This is due to the global recession caused by the COVID-19 pandemic. The demand for Queensland’s exports, such as coal and LNG, was lowered. On top of this, travel restrictions also negatively impacted Queensland’s tourism sector. The amount of international students arriving in Queensland is expected to fall in 2021.
Queensland and Investing in Property
Despite the negative impact of the pandemic, Queensland’s resilient economy still stands strong. Economy experts even hail Brisbane as the best place to invest in property in Australia. This is due to many factors. One of which is the extremely fast-growing population. Queensland is home to 5.2 million and is increasing at a fast rate. Queensland has one of the fastest population growth in the country.
With this rapid change, the Government is doing its best by investing in proper manufacturing, solid infrastructure, and skills training. A tight rental market and the lack of housing, in addition to a rapidly growing population, these factors make Queensland the perfect conditions for property investors. There has never been the perfect time to invest in property in Queensland.
Plenty of experts have stated that there’s no other location in Australia that offers better opportunities for capital growth than Queensland. This is due to Queensland’s affordability, liveability, and positive future economic prospects. The Sunshine State is currently experiencing a huge infrastructure boom. A new airport runway and hospitals are being constructed, and are expected to operate in the upcoming years.
Local agents in the Brisbane and Gold Coast Area are crying out for more investment properties to cater to the ever-increasing housing demand. Brisbane is currently home to 2.28 million people and is climbing up fast. Plenty of new houses will need to be constructed to keep up with the rising housing demand. One of the main reasons for this increase in housing demand is a surge in interstate migration.
Brisbane’s residential rental vacancy rate is a super low 1.5%. This means there aren’t many vacation rentals in the area. This opportunity can be taken advantage of by investors.
Real Estate Investing in Brisbane
Are you wondering about the real estate market in Brisbane, the capital of Queensland? If you’re interested in investing in Brisbane properties, read on!
The house prices in Brisbane have remained resilient despite the COVID-19 pandemic. It maintained stability over the past year and is expected to push on ahead in 2021. A recent report by the ANZ Bank forecasts the house prices in Brisbane will increase by 16% throughout 2021. However, it will slow down to 8% in 2022. This forecast is a huge turnaround from the pessimistic forecasts by numerous banks from last year.
While writing this article, Queensland’s real estate market is doing remarkably. It has delivered a 5.3% growth in the past 3 months. There is a huge demand for lifestyle areas and detached houses in the Brisbane area. This is particularly true in the inner and middle-ring suburbs. These areas have delivered a strong 5.3% growth in the past 3 months, while Brisbane’s higher-end properties earning more.
There is also strong evidence that there are more property buyers than sellers in Brisbane. This is due to the auction clearance rates in the city being consistently in the 70% range. This is unusual because the city isn’t known for its auction culture, compared to cities in the south. With buyers outnumbering sellers, you can expect higher property prices.
However, you should know that not all areas of Brisbane are a great investment opportunity. Each location will have varying performances and growth potential. The hottest places to invest in Queensland have to be the Brisbane and Gold Coast areas. This is due to the flexibility of work from home and not having to commute as much.
It is also important to know that the apartment market in Queensland is falling behind, compared to houses. Compared to houses, there is a huge supply of apartments that aren’t fit for owner-occupiers or whole families.
Conclusion
If you’re planning to invest in property or other types of investment in Australia, Queensland is one of the best choices available. Today’s economic climate is one of the best times to invest in property in Queensland. The lack of housing and tight rental vacancies will ensure you’ll get your return of investment easily. This is due to the state’s stable economy, excellent weather and living standards, and the rapidly increasing population.
For more information relating to an investment in Queensland, call our friendly team today at 1300 002 880 or email us at info@qicg.com.au.
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