HOUSING in Queensland is more affordable than it was a decade ago, with many areas now cheaper to buy a property in than to rent one.
A new report by ANZ and CoreLogic reveals household incomes have risen at a faster rate than home values in the Queensland capital – particularly in the last quarter of 2018.
It means the housing market is more affordable for those buying or saving for a deposit.
Greater Brisbane suburbs like Beenleigh, Caboolture, Springwood and Ipswich are now more expensive to rent in than to pay off a mortgage.
In regional Queensland, housing affordability is even greater, with most areas from the Darling Downs to Cairns much cheaper to buy in than rent.
Over the past decade, median dwelling values across the state’s regions have lifted by just 4.4 per cent, while household incomes have increased by a much greater 28.9 per cent.
It is now significantly cheaper to buy a home than rent one in Biloela, with the report estimating it would take only 2.5 years to save a 20 per cent deposit.
“Anywhere around the mining areas have seen steep value declines and that has impacted affordability,” ANZ managing director of consumer banking Kate Gibson said.
“It doesn’t mean it’s a great idea to go rushing in, but we’re starting to see locals who had been priced out (of the market) now in a position to get back in.”
The average household income in Brisbane has jumped more than 31 per cent in the past 10 years, while median home values have increased by 25.8 per cent.
It takes eight years for an average household to save a 20 per cent home deposit, based on a median home value of $493,568 and saving 15 per cent of their income.
But it can take significantly less, or more time, depending on which suburb you are looking to buy a property in.
In Ipswich and Jimboomba, it takes about six years to save for a deposit, while in Bribie Island and Sunnybank, it is likely to take more than a decade to come up with enough money to buy a home.
Ms Gibson said the older, more established suburbs were usually the hardest to buy into in most capital cities, but the report showed areas by the water were the most sought-after.
“If it’s a nice area to retire to or a nice place to have a beach house, we’ve found housing values have been driven more by people buying from outside the area than local residents,” she said.
In Noosa, the report estimates it could take 13 years to save for a 20 per cent deposit for a home, while in Burleigh Heads and Southport, would-be buyers are looking at needing to save for at least 10 years.
Ms Gibson said the report was designed to help potential buyers find opportunities to get into the market at a price point they could afford.
Homeowner and mother-of-two Rachael Tickner said she and her husband, Brent, had considered upgrading to another home, but would need to save for a few more years to get into the suburb they would like to live in.
They currently own a four-bedroom house in Nudgee.
“In my heart I definitely want to live somewhere else … it would be lovely to be more inner city,” Mrs Tickner said.
“I’d love to live in Ascot, but we’re looking at a good 10 years of saving and going without before we can afford that!”
But she said they would be more open to buying an investment property in a less desirable suburb.
“We’d be open to researching the areas that do have a lot of growth and good return and wouldn’t rule out any suburbs,” she said.
It comes in the wake of the first cut to interest rates in almost three years, with the Reserve Bank of Australia slashing the official cash rate to 1.25 per cent this week.
WHERE IT’S CHEAPER TO BUY THAN RENT
Suburb % of income needed to service mortgage % of income needed to rent
Beenleigh 29.9% 31%
Biloela 10.3% 19.1%
Bowen Basin – North 11.2% 19.4%
Browns Plains 26.3% 26.3%
Bundaberg 27.6% 30.8%
Burnett 21.2% 28.8%
Caboolture Hinterland 31.4% 31.5%
Cairns – North 27.4% 28.5%
Cairns – South 26% 30.2%
Central Highlands 12.9% 18.9%
Charters Towers 17.2% 23.6%
Darling Downs – East 18.5% 22.5%
Darling Downs – West 13.6% 20%
Far North 25.2% 29.7%
Gladstone 17.9% 18%
Granite Belt 24.5% 26.8%
Innisfail 19.8% 27.7%
Ipswich Hinterland 26.5% 27.8%
Mackay 23.9% 28.5%
Maryborough 28.1% 33.2%
Outback – North 11.6% 19.7%
Outback – South 8.2% 18.6%
Port Douglas 25% 27.6%
Rockhampton 21.8% 25.4%
Surfers Paradise 34.1% 40%
Springwood-Kingston 25% 28.1%
Tablelands (East) 28.9% 32.6%
Townsville 21% 24%
Whitsunday 29.6% 31.2%
YEARS NEEDED TO SAVE A DEPOSIT
Suburb Years to save a 20% deposit
Bribie Island 10.8
Brisbane inner 7.3
Browns Plains 6.5
Ipswich inner 6.1