According to The Australian Financial Review, Queensland is in a historical sweet spot for home price growth with an analysis of interstate migration showing that the gap in home price between Sydney and Brisbane could soon start narrowing.
In 2002, the median Brisbane home price equated to just 41 per cent of a Sydney home – a historical low. But interstate migration to Queensland started to surge, peaking in 2003 at about 40,000.
Home prices started to rise as the interstate migration rose and the gap between median Sydney and Brisbane prices started to narrow.
Brisbane home prices were able to reach as much as 78 per cent of a Sydney home price in 2008.
CBRE researcher Ally McDade points to Brisbane's median home price now being about 43 per cent of a Sydney home price and that interstate migration is surging.
Stockland analysis shows that most interstate buyers to Queensland are coming from NSW, representing about two thirds of total interstate purchases in Stockland's south-east Queensland communities.
Victorian buyers accounted for a further 12 per cent of interstate purchases, followed by South Australia (8 per cent) and the ACT (6 per cent).
Andrew Whitson, Stockland group executive and CEO of residential, said: "It is no surprise that interstate buyers looking for affordable, high-quality new homes and an appealing lifestyle close to all services are turning their attention to Queensland," Mr Whitson said.
"The Sunshine State has so much to offer buyers and we expect these trends to continue into 2018," he said.
Golden State development director Jim Watson said "A typical scenario is a Western Sydney home owner who can sell their house where they have had a $200,000 mortgage for $800,000, buy a house in Queensland two streets back from the beach on the coast for $400,000, buy a Jims Mowing franchise for $80,000 and have $100,000 in the bank for the first time in their life."
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