The pandemic brought with it an unforeseen surge in property prices followed by rate rises not seen in more than a decade. This, coupled with increased competition in the housing market, had a profound impact on spending leading to high inflation.   

Despite the negative headlines, there’s still optimism about Queensland’s property market if you take a long-term view. 

In last year’s Census data, Queensland topped the list of all states and territories in terms of interstate migration net gains (over the previous five years) and almost 220,000 people are tipped to migrate here from the southern states over the next five years, according to a Property Council of Australia report. 

RACQ Bank is helping Queenslanders get even more

So, while we have experienced a dip from its peak (10.9% from June 2022 to 28 January 2023), we’re still ahead of where we were this time three years ago. 

The rental market remains very competitive, which can be a double-edged sword for those looking to find a property. 

At the same time, unemployment rates are still at low levels not experienced since the 1970s when our economy was very different.

While these are all positive indicators, it is critical that people take a balanced view when assessing their property options. 

• Firstly, while there are early signs of inflation slowing, indicating the 10 rate hikes might be starting to work, the RBA is still trying to slow down the economy by reducing spending. This means we could see further rises this year. 
• Another consideration and potential challenge for some prospective home buyers is their borrowing capacity. Higher interest rates may affect people’s capacity to borrow and this can be particularly challenging when property prices are at the levels we’re seeing. You can always adjust your purchase criteria to reflect what you can afford based on the interest rates today. 
• In a rising interest rate environment, competition is strong among banks. It’s important to find a home loan option that works for you and your individual circumstances. For example, RACQ is one of the few banks to offer extended loan terms which are designed to support people who want greater flexibility in their loan repayments. This doesn’t mean you’re locked in for the full extended term – you can still make additional repayments or pay out your loan earlier should your situation change. Importantly, this solution gives you choice. 

Remember you’re not alone.