Property investors return to Queensland

Author: Shannon Molloy
Date: May 23, 2007
Publication: Brisbane Times

Investors are making a robust return to the Queensland property market because of a positive outlook on interest rates and ever-increasing rents providing a stable source of income for owners.

In April 33.8 per cent of new mortgages were taken up by investors, setting an all-time high record for the second month in a row.

Upward pressures on rent and an ease in the prospect of further interest rate increases have encouraged investors back to the market, Real Estate Institute of Queensland managing director Dan Molloy said.

"Property investment remains an attractive long-term wealth creation strategy with the ability to produce income and capital growth," Mr Molloy said.

While Queensland and Western Australia were driving the investment market, resurgence in other states helped assist the back-to-back rises, according to the AFG Mortgage Index.

"It is seldom that we see the indicators for every state looking positive, but right now that's exactly what's happening," AFG sales and operations general manager Mark Hewitt said.

As the window of opportunity to invest up to $1 million in superannuation closes at the end of this financial year, it is expected investor activity would continue to strengthen, Mr Molloy said.

Strong growth is tipped to continue into the second half of the year, he said.

"A well-located property investment is, and always will be, a stable and financially rewarding investment.

"This is especially true in Queensland as the continued strong population growth will underpin a consistently healthy property market into the future," he said.

Queensland's strong employment and population growth was responsible for the state's positive performance, Matusik Property Insights director Michael Matusik said.

He said while owner-resident interest was second highest in Queensland, the state was leading in terms of investor confidence.