There is now a huge gap in prices between Australia’s three major capital cities, pointing to the likelihood of catch-up growth.
Sydney values are double that of Brisbane houses and Melbourne homes are more than 50 per cent pricier than Brisbane homes.
But Sydney-siders earn only 12.9 per cent more income than Brisbanites and Melbournians earn less, CoreLogic head of research and analytics Tim Lawless told news.com.au.
This singles out Brisbane’s affordability as a major attraction for interstate buyers and the move north has now begun.
The number of people moving to Queensland from other states is far out-pacing the number of people leaving, with Queensland’s net interstate migration overtaking Victoria for the first time since mid 2013.
Jobs growth – the magic ingredient many experts say will drive property price growth – is currently faster in Queensland than any other state with more than 100,000 jobs created over the past year.
“The improved jobs sector, together with high rates of migration and an affordable mix of housing is a solid recipe for stronger housing market conditions,” Lawless said.
But tighter lending conditions and high levels of household debt were likely to keep growth to a steady pace and prevent a sudden surge in values.