- 85% of buyers in the town of Gympie are actually fellow Queenslanders
- REIQ and SQM data shows prices have risen - but still (relatively) affordable
- The region has a vacancy rate of just 0.3%
For those who assume it is mostly residents of the southern states that are taking advantage of affordable property prices in the Sunshine State, new research may surprise you.
Property sales in the town of Gympie, about 170km north of Brisbane, have soared over the past year.
Gympie – 4570
SQM Research shows that weekly asking prices in Gympie have risen sharply since the pandemic. While houses hovered around the $350,000 asking price mark for much of the last decade, this has now risen to just shy of $500,000.
Who are the buyers?
Recent analysis has revealed that around 85% of buyers are from Southeast Queensland, primarily from the Sunshine Coast, Brisbane and the Northern Gold Coast.
Billy Mitchell, a Century 21 Platinum Agents Principal and Property Tribune contributor, noted that compared to the rest of southeast Queensland, Gympie property remains relatively affordable.
“High weekly rents on the Sunshine Coast and Brisbane, as well as the low interest rate environment, is also motivating plenty of tenants to become home-owners here instead of renters there,” explained Mr Mitchell.
According to the Real Estate Institute of Queensland (REIQ), the median house price in Gympie was $349,999 as of March. This is less than half of the price recorded on both the Sunshine Coast and in Brisbane.
0.3% vacancy rate fuelling market
Mr Mitchell said multiple offers are common, resulting in stronger sale prices.
“House prices have jumped by about 20 per cent over the past year, but the buy-in prices still remain achievable for the majority of potential purchasers, which is just adding further fuel to the market,” he said.
“Investors are also taking an active interest in our region with rents increasing significantly because of an undersupply of available rental properties.
Currently, the region has a vacancy rate of just 0.3%.
Despite this, Mr Mitchell noted both the Gympie and Cooloola Coast markets were robust before the pandemic, with demand being driven by the four-lane highway from Gympie to the state border.
“We were a bit of a hotspot pre-pandemic. Our market was definitely heading in the northerly direction but, after COVID, it has just gone berserk. Tin Can Bay, in particular, is off the charts,” Mr Mitchell said.
“Many investors are circling us now because Gympie is a sound regional area to buy in for myriad economic reasons – and it’s also making financial sense to everyone else now, too.”
Billy Mitchell
