Australia’s most wanted homes are in South East Queensland as Sydney’s popularity slips

Housing affordability issues appear to have finally caught up with Sydney, as Aussie home buyers enter the new decade looking elsewhere for opportunity and value, in surprising locations.

James MacSmith

3 min read

February 7, 2020 - 12:00AM

The future of real estate on the Gold Coast is looking bright.

Sydney’s housing affordability issues appear to be catching up with it, as buyers enter the new decade looking for opportunities and value elsewhere around the country.

The Harbour City has been shunned by prospective buyers at the start of 2020 with South East Queensland heavily favoured instead.

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The Gold Coast sits atop buyers’ (and renters’) wish lists this year, with Brisbane and the Sunshine Coast second and third on a list of the most searches locations in Australia in January, according to data provided by realestate.com.au.

The Gold Coast is Australia’s most sought-after property location. Picture: Glenn Turner

Sydney is not one of the top 10 most-searched areas for buyers, however it comes in at fifth on the list of the most-searched rental areas.

Capital cities Hobart and Adelaide make the buyers top 10 list, as does Melbourne in ninth spot.

Ballarat, Cairns and Launceston have all emerged as preferred buyers locations ahead of the NSW capital.

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REA Group Chief Economist Nerida Conisbee said the popularity of South East Queensland was evidence of a real shift in the market.

“Certainly search for South East Queensland is very popular on our site. The Gold Coast was the most popular location for January 2019, but Brisbane and the Sunshine Coast have certainly gone up in popularity,” she said.

That interest in South East Queensland is being driven by Baby Boomers looking for a sea or tree change in retirement but also by younger generations looking for an easier and more comfortable existence outside the major capitals of Melbourne and Sydney.

“There are also younger people who can’t afford to buy and live in Sydney and looking to cheaper places like the Gold Coast instead. Not everyone has to live in Sydney, people can find employment elsewhere.

“That shift to South East Queensland seems to be driven by affordability issues.”

Increased interest in property on NSW’s Central Coast also points to a move away from Sydney.

Brisbane is also a popular search location for potential buyers.

“That potentially shows the ripple effect outside of Sydney that is happening,” Ms Conisbee said.

The return of investors, whose market activity dropped 40 per cent during the recent downfall, is driving interest in these sought after areas.

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“From our data, we can see that investor interest, particularly in units is very focused in Melbourne, the Gold Coast and Brisbane City. Investor activity is a key driver in those markets,” Ms Consibee said.

Ballarat’s proximity to Melbourne, and rising prices in Geelong, is fuelling demand in the Central Highlands location.

Launceston is following Hobart’s lead.

The Launceston market looks on the up, following on from Hobart’s lead over recent years.

“We are seeing very high demand and strong price growth in Launceston, similar to what Hobart has enjoyed,” Ms Conisbee said.

The strong rental demand is South East Queensland is being driven by the increasing availability of jobs there, while oversupply in units in Melbourne makes it an attractive proposition for prospective renters.

Sydney’s position as the sixth most popular rental area searched shows it is still a city people want to live in.