Queensland is the Top Destination for Interstate Migration
Throughout the COVID-19 pandemic, Australia has experienced the biggest three-month population drop since World War I. The population fell by 4,200 people in the September 2020 quarter to 25,693,059 due to the outflow of people. But one state, in particular, saw an influx of population growth.
While Victoria and New South Wales are suffering the most from the decreasing population, with Victoria losing 16,022 people in the quarter and New South Wales 1,163. Queensland saw an increase in interstate migration.
Before the pandemic, around 63 per cent of population growth was accounted by migrants, last year they accounted for less than 39 per cent. Births declined as well, with the number of babies born last year decreasing by 2.2 per cent. This is the lowest number of birthday in more than 11 years and the biggest annual drop in 24 years.
You might be wondering, how does the population drop affect the property market. Well, the stats really turned around for Queensland as the state became a popular destination for interstate migration, taking out the leading position welcoming 27,115 people. The population boom in Queensland from interstate migration driving prices and low vacancies compared to other states. In the September quarter alone, the vacancy rate for Greater Brisbane was 1.4 per cent.
NET INTERSTATE MIGRATION BY STATE AND TERRITORY
With such population increase, comes more competition for the affordable Queensland property market. As record-low interest rates, the lack of stock on the market and an increased flow of interstate migration are driving property prices up. Now, suburbs like Surfers Paradise see an increase in demand as over 40,000 buyers are looking to get in the market in this area alone.
With tight rental market conditions and high competition, to stand out some tenant applicants go to the extends of submitting cover letters and offering to pay months in advance or above the asking price. If you have any questions about where your investment property stands in the current market, contact your property manager here.