Regional Queensland nailing property investor criteria

At the halfway point of the year, regional Queensland is one of regional Australia’s top property markets for 2024.

Regional Queensland was ranked in the Canstar 2024 Rising Stars report by Hotspotting as the top regional market for future growth and also ahead of several of the capital cities on five key market metrics, namely sales activity, recent price movements, vacancy rates, rental growth trends and infrastructure spending.

And it is primed to repeat that performance into the second half of 2024, with prices and rents likely to continue increasing in many regional Queensland markets this year.

There are still plenty of people relocating to Queensland from southern states leading to growing demand for real estate. This is backed up by lending data that shows loans to owner occupiers and investors are at all-time highs in Queensland.

This strong demand is being reflected in price data, with PropTrack figures showing regional Queensland unit prices rose by 12 per cent in the past 12 months and house prices by 11 per cent during the same period.

While regional Queensland markets have done very well since the start of the year, it seems unlikely they will slow anytime soon.

Since the start of 2024, there has been considerable impetus driving the Gold Coast, Gladstone, Townsville, Cairns, Rockhampton and Toowoomba, with growing signs of resurgence in the Sunshine Coast market

For investors, the markets still offer plenty of opportunities. The majority of investors are seeking affordability. According to Australian Bureau of Statistics figures, the majority of investors have incomes below $100,000. This dictates, for many, a purchase somewhere in the range from $400,000 to $600,000, a price range in which many regional Queensland markets sit comfortably.

High rental yields

It’s not just affordability that regional Queensland markets offer but also solid returns for investors with above-average rental yields in many locations.

Gladstone and Kingaroy are perfect examples of this.

Gladstone is one of Australia’s most promising regional markets. It has a diverse range of projects, either underway or proposed, including multiple hydrogen initiatives.

It has become a bustling regional centre with growing job opportunities, leading to a rise in demand for real estate.

House prices in the city remain relatively affordable, with properties ranging from the mid-$300,000s to mid-$400,000s. Rents are on the way up, with median asking rents for houses increasing by more than 16 per cent in the past 12 months according to data from SQM Research.

House rental yields are at a level that will please most investors, with the majority sitting in the 6 per cent range, while unit yields go as high as 8.5 per cent.

Closer to Brisbane, Kingaroy provides similar opportunities.

Despite its proximity to major cities, Kingaroy offers comparatively cheap land, very low vacancies, and rising rents, making it a desirable location for investors and home-buyers.

Its prime location, just two hours northwest of Brisbane, positions it for significant growth in the future.

The region has all the necessary elements for success, such as a favourable climate, a strong farming culture, and convenient trade routes. Its thriving transport and logistics industry, as well as the $31.4 billion Inland Rail Link, further contribute to its appeal.

Additionally, Kingaroy has embraced renewable energy projects, solidifying its position as a promising location for economic growth and future prosperity.

Median house prices start at just $380,000 while yields are all in the mid to high 6 per cent range and median asking rents have increased by 30 per cent in the past 12 months in some of its suburbs and towns.

Those markets alone show that the regional Queensland market has plenty of life left in it, and significant growth potential.