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Tuesday, March 2, 2021

Queensland housing affordability set to plummet as construction rates decline

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Buying your first home in Queensland will get even harder as fewer homes are built and housing demand increases from interstate investors.

The Housing Industry Association released figures last week indicating fewer home-buyers were building their dream house.

The developers group forecasts only 14,000 multi-units will be built across the state each year to 2025, compared to 26,322 units in 2015.

Just over 20,000 new homes are expected to be built in 2022 – the lowest rate since 2014.

Housing affordability is set to plummet in one state as fewer homes are built and housing demand increases from interstate investors

Housing affordability is set to plummet in one state as fewer homes are built and housing demand increases from interstate investors

The housing group forecasts only 14,000 multi-units will be built across the state each year to 2025, compared to 26,322 units in 2015

The housing group forecasts only 14,000 multi-units will be built across the state each year to 2025, compared to 26,322 units in 2015

Real estate expert Chris McKnoulty said interest from interstate investors was also increasing demand in a dwindling housing market.

He advised first home buyers that now was the time to put down an offer on a house, while prices were still affordable.

‘Buy something that’s affordable without putting yourself in a precarious debt situation,’ he told the Courier Mail.

Mr McKnoulty admitted first home buyers will need to look to Brisbane’s outer suburbs if they wanted something affordable. 

‘People will need to move out of the city or decide the dream family home will be a townhouse in Carina, which is fine,’ he said.

REIQ chief executive officer Antonia Mercorella pointed out there were plenty of homes selling for $550,000 or less in the surrounding suburbs.

A three-bedroom home with a four-car garage at Karana Downs, west of Brisbane, is on the market for $410,000.

Another three-bedroom home with a two-car garage is being sold for $519,000 at Bellbowrie, south-west of Brisbane. 

‘The reality is we can’t all be living in the middle of Brisbane any more,’ Ms Mercorella said.

A three-bedroom home with a four-car garage at Karana Downs, west of Brisbane, is on the market for $410,000

A three-bedroom home with a four-car garage at Karana Downs, west of Brisbane, is on the market for $410,000

Another three-bedroom home with a two-car garage is being sold for $519,000 at Bellbowrie, south-west of Brisbane

Another three-bedroom home with a two-car garage is being sold for $519,000 at Bellbowrie, south-west of Brisbane

‘If the market continues to perform like it has been, there’s no doubt that house prices will continue to rise.’

The Housing Industry Association said the downturn in construction is also expected to happen across the rest of the country in 2023.

This is despite forecasts for a bumper year with 130,000 homes expected to be built in 2021.  

The housing group credited the uptick in construction to HomeBuilder grants, low interest rates and a growth in population.

HIA’s Chief Economist Tim Reardon said a shift in international rivals would be partly to blame for the downturn.

‘We anticipate that all of these trends will move against home building in 2023 along with the impact of the loss of overseas migration,’ he said. 

Real estate expert Chris McKnoulty said interest from interstate investors was also increasing demand in a dwindling housing market

Real estate expert Chris McKnoulty said interest from interstate investors was also increasing demand in a dwindling housing market

The Housing Industry Association said the downturn in construction is also expected to happen across the rest of the country in 2023

The Housing Industry Association said the downturn in construction is also expected to happen across the rest of the country in 2023

This post was first published on DailyMail.

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