On a global scale, Australia ranks as a very desirable place to live. Our climate, particularly in Queensland, is amazing, our economy is strong and we’re a friendly and welcoming bunch. People move here in their droves from all around the world, many of them chasing the Australian dream of home ownership.
That dream is becoming more and more difficult to achieve however, as unplanned migration growth over the next few years is hitting a crescendo. Demand for housing is high, and there simply isn’t the stock to satisfy it. Recent research done by the Institute of Public Affairs shows just how hard the next few years will be for the housing market… and Queensland is going to be particularly hard hit!
The Statistics on Unplanned Migration
The very thorough researchers at IPA have highlighted some key findings on migration statistics between 2023 and 2028 in their report ‘Mass Migration Induced Housing Shortage’.
Here are the migration stats:
– Net overseas migration to Australia will increase by 1.755-million people.
– Queensland’s share of the population is 21%, so it’s assumed 21% of new immigrants will come and join us in the Sunshine State (we feel it could be a bigger portion, because Queensland is such an attractive place to live!)
Here’s what this means for households:
– 117,000 households will be formed from immigration alone every year leading up to 2028.
– This is in addition to the normal creation of 69,617 domestic households every year.
– This will leave Australia with a shortage of 252,800 homes by 2028.
Want to know the aggregated cost of building this extra housing for Australia? Approximately $142-billion, or $24-billion per year!
What Does This Mean For Queensland?
According to the report, Queensland is expected to welcome 359,790 immigrants between now and 2028. This is the equivalent of 143,916 households needing to be formed from immigration alone.
Given the current rate of household production, that’s going to leave us with a shortfall of 54,591 properties in Queensland by 2028. The total cost of this is $27.16-billion!
What Does this Mean for Real Estate Prices?
According to the IPA’s deputy executive director Daniel Wild, “Every Australian should have the opportunity to own their own home, yet the surge in demand from unplanned migration growth will make housing even less affordable for both Australians and new migrants alike.”
Demand is exceeding supply, so naturally house prices will go up. We’re seeing this in the market already – there are plenty of buyers out there, but not enough real estate stock coming onto the market.
It’s the creation of a perfect storm, because building approvals across Australia are at record lows. Prices of building materials are skyrocketing, building time is increasing and many builders are dropping out of the trade altogether. The housing industry needs more sustainability, and it doesn’t look like it’s coming anytime soon.
Is It a Good Time to Sell my Property?
The best time to sell your property is when the time is right for you and your family. If you need to move on to your next chapter in life and selling your home will facilitate that, then the time is right for you to sell. We wouldn’t recommend selling based purely on what the market is doing – it has to fit in with your own life plan too.
That said, at the moment there are more buyers than there are sellers. Prices are bouncing back, and given the topics spoken about above, they’re likely to remain strong.
If you’re thinking of selling, you still need an accomplished real estate agent to help you navigate the current market conditions. An agent who doesn’t rely on local buyers, but has an extensive national and international network that allows him to reach affluent buyers in Australia and overseas. You need Henry Wong, who has been selling Brisbane real estate for many years now, and would love to leverage his contacts to get you the right price for your property.
Get in touch with the Henry Wong Team® today.