High cost of living impacting QLD more than any other state
And saving for home deposit huge barrier to home ownership, new Homeloans research shows
Queenslanders are more worried about the rising cost of living and saving for a home deposit than any other state in Australia. But regardless, more than half of Queensland home buyers think it’s a good time to invest in property, according to the latest poll released by mortgage provider Homeloans Ltd.
The Homeloans Home Buyer Barometer Q2 2011, which surveyed 2000 Australian first home buyers, homeowners and investors, found that almost a third (30 per cent) of home buyers in Queensland believe saving for a deposit is the major barrier to home ownership.
And although the high cost of living is the top financial concern for the whole country, Queenslanders are the most worried about the impact of rising costs over the next 12 months (44 per cent). This compares with 33 per cent in NSW, 34 per cent in Victoria and 37 per cent in South Australia and Western Australia. Reflecting the Australia-wide sentiment, interest rate concerns have taken a backseat to the cost of living, with Queenslanders least worried nationally about rates (at 19 per cent).*
Despite these findings, 53 per cent of Queenslanders believe the market is right to invest in property, one in four (26 per cent) were unable to give an opinion, whilst a fifth (20 per cent) were adamant that now definitely isn’t the right time to be buying.
For those considering purchasing, brand new properties or properties requiring no renovation are in greatest demand in Queensland, with 59 per cent of respondents saying this is what they would prefer, 21 per cent are keen to build their own house or unit, whilst 20 per cent are looking to buy property that requires renovation.
“The recent natural disasters have had a huge effect on Queensland, living costs and confidence levels,” says Bob Hudson, state sales manager Queensland. “But we’re seeing a real mixed bag of activity and enquiry across the regions, obviously reflecting the impact of the resources sector in these areas.”
Homeloans has noted the following regional trends:
Brisbane
A noticeable increase in construction enquiry, with more consumers interested in building their own homes, particularly because of the perceived value for money with new-builds given that the market value for existing property is depreciated and many vendors are expecting or needing a higher price for their property than the market is prepared to pay. Brisbane is also experiencing continued urban sprawl, with many home buyers moving further and seeking ‘more bang for their buck’
Townsville
According to Homeloans, Townsville appears to be picking up, with a number of new estates in the north of the city showing good potential. Growth is being heavily underpinned by the growth in the western mining region, fuelling owner-occupied enquiry, with investment showing potential as new estates reach final stages. Additionally, Townsville’s sister city, Thuringowa is outstripping Townsville city for growth.
Mackay
The Mackay market is strong, with the buoyant resources sector driving demand. There is an undersupply of existing residential property to meet local demand, and a number of new estates underway. “A significant number of people want to build their homes, but can’t get the land they want due to high demand for vacant sites so have settled for existing property,” Hudson explains.
Rockhampton / Wide Bay
Homeloans has noticed very little activity in the mortgage sector in Rockhampton, which is a somewhat restricted market. Conversely, Wide Bay, and specifically Gladstone, is showing signs of buoyancy due to development of the resources sector. The Central Highlands region is developing new gas streams, with infrastructure to be developed in Gladstone to support shipping and distribution and process. “This will in turn foster interest in all market sectors, as the region strives to grow in line with growth in the resource sector,” says Hudson.
Cairns
“The city appears to be somewhat dormant whilst it waits for an upturn in consumer confidence,” Hudson says. “Recently I visited eight estates, but there were only two where contractors were operational. There are approximately 60 new development applications for new estates, but it would seem a distant possibility that any of these will turn soil in the near future.
“Compounding this, there is little new employment opportunity, due to the downturn in tourism as a result of factors including the GFC and high Australian dollar. As a result, existing property has obviously stalled, with homes not reaching required values.”