Trend driving interstate property market
A growing number of Melbourne and Sydney residents have settled for paying rent and forgoing buying property in their excessively expensive cities.
Instead, people are looking outside their states to snag a bargain and get on the property ladder, experts say, and both Hobart and the Gold Coast are benefiting from this trend.
More than 513,000 searches in 2018 for homes on realestate.com.au outside of NSW were concentrated to within 30 kilometres of the Gold Coast.
Nine of the top 20 interstate searches were suburbs close to the seaside Queensland city.
And while Sydneysiders are looking north, property hunters from Victoria are gazing across the Bass Strait.
CoreLogic head of research Tim Lawless said additional costs associated with owning property were overwhelming for residents in the nation's already expensive two biggest cities.
"Purchasing outside of Sydney and Melbourne as an investor has been a worthwhile option for many buyers," he said.
"It does highlight the affordability constraints that have become formidable barriers to participating in the Sydney and Melbourne housing markets.
"Many buyers probably still aspire to owning a home in their local city and see the option of investing in other areas as a logical stepping stone on their way to more localised home ownership."
He said rentvesting was likely having a negative impact on overall demand in the market.
"But this is a natural result of housing affordability being such a challenge for many prospective buyers," Mr Lawless said. Source: Gladstoneobserver.com.au