More Sydney siders than ever are moving to South East Queensland, off the back of the harbour city’s market stagnation. In a demographic shift that we know as “moving day”, families and downsizers alike are looking northward in search of greener pastures. According to data from the ABS, Greater Sydney’s median dwelling values have receded 8.1% since the start of 2018 -motivating droves of residents to sell up their highly mortgaged homes for an opportunity in Queensland hubs such as Brisbane and the Gold Coast.
The Queensland market added approximately 25,000 new residents throughout the 2017/2018 fiscal year through Net Interstate Migration, while New South Wales lost -21,000 residents. Over the same period, QLD added more interstate residents than any other in Australia. The last time the state population was growing at this rate, the Brisbane market experienced it’s mid 2000’s housing boom.
The widespread exodus of Sydney residents is being driven by younger families seeking entry in the housing market for a number of factors.
According to the Australian Bureau of Statistics residential housing price index, Greater Brisbane has a median house price of $540,000 ($166,000 and $370,000 lower than Melbourne and Sydney respectively). Hopeful buyers are now selling out of their Sydney assets and buying into new Brisbane homes mortgage free, allowing for much needed mortgage relief.
Brisbane’s inner to middle ring markets are offering lifestyle factors simply not available to those living on Sydney’s outskirts. For a lesser price, young families are moving into housing markets that are 5km from the Brisbane CBD giving access to the city’s major drawcards. Appealing suburbs such as Greenslopes and Woolloongabba lay within 4 kilometres from the city, holding access to some of the country’s most prestigious schools, while holding median house prices in the $700,000s.
The major motivator for Sydney buyers to move north is the notion of more choice and opportunity. Affordable housing options are providing established buyers with the possibility of a mortgage free life and ultimately, the choice to chase alternative ends.
Sydney and Brisbane traditionally have a counter cyclical relationship. While one city experiences downfall, the other is regularly a major benefactor. Brisbane will likely be the strongest performing market of the two over the midterm, as it continues to evolve into Australia’s next world city. It is our aim to provide Blue Wealth clients with the opportunity to leverage off this market transformation over the long term.