Over the past month as auction clearance rates have declined in Sydney I have waited curiously to see how the market would be affected, if at all, in Brisbane and the wider South East Queensland (SEQ) region. While buyers are definitely cautious about the low auction clearances in Sydney and the recent move to increase interest rates by the majority of the big banks, they are still generally positive about the outlook for property in SEQ.

One of the biggest factors that will continue to positively impact the SEQ property market is the increasing house price gap with Sydney. According to CoreLogic RP Data, in August the difference was $431,500 – the largest gap in dollar terms on record with Sydney house prices 88% higher than Brisbane. This telling statistic will be one of the key reasons I feel we will see a turnaround on the poor interstate migration SEQ has experienced over the past five to ten years as more interstate buyers head north in search of value for money and a better lifestyle.

There has been very little to cheer about in the SEQ property market over the past five years, however the increased reporting of record prices being achieved in select suburbs is a very healthy sign and something that has not been prevalent until recently.  I expect this trend to continue with the popularity of auctions increasing in the region due to the upsurge in competition amongst buyers.

In years gone by it has been a healthy Queensland market as a whole that has led to strong activity in SEQ, however one aspect that I feel is often overlooked is the tough times that many regional areas in Queensland are still experiencing post-GFC. The biggest winners to come out of the weakening Australian dollar are the many towns along the Queensland coast that are largely dependent on tourism to stimulate growth. Towns such as Cairns, Harvey Bay and regions such as the Capricorn Coast will see a significant economic boost as tourism numbers return.

Now that Sydney has slowed and positive signs are beginning to appear for the Queensland economy, all indications point to positive times ahead for home owners in the sunshine state.