The impact of the population explosion on property in QLD

South East Queensland has experienced a significant population explosion in recent years and the booming Queensland population is predicted to surpass 7 million by 2046.

It’s not just the southerners who moved up to sunny Queensland that are the only contributors to the explosion though, according to the Australian Bureau of Statistics, around 170,900 people migrated from overseas in 2021/22. Of those, 23,430 made the move to Queensland.

As you can imagine this population explosion has had a significant impact on the property market in this location. At a glance for the South East Queensland region the data shows that by 2046 there will be nearly 2.2 million more people which also means there will be a need for almost 900,000 new homes, that is 40,000 new homes per year in South East Queensland alone!

As a Sunshine Coast local, I have strong interest in the data for this region and in the Sunshine Coast Local Government Area – in the period from 2021 to 2046 there will be growth of 57.37%.

Let's discuss the key factors driving this population growth and the repercussions it has on the property market.

Population Growth
South East Queensland has been attracting a large number of both interstate and international migrants. The region offers a desirable lifestyle with a warm climate, beautiful beaches, and a strong job market. The population growth has been further fuelled by the affordability of housing compared to other major Australian cities.

Increased Demand
The population explosion has resulted in an increased demand for housing in the region. This surge in demand has led to a rise in property prices and rental rates. As the population continues to grow, the demand for housing is expected to persist, driving prices even higher.

Housing Affordability Challenges
The population explosion has placed additional pressure on housing affordability in South East Queensland. With increasing demand and limited supply, property prices have risen, making it more difficult for first-time buyers and lower-income earners to enter the market. This has led to concerns about housing affordability and the need for policies to address the issue.

Rental Market
The population boom has also impacted the rental market. As individuals and families move to the region, there is increased competition for rental properties, leading to rising rents. This can make it challenging for renters, particularly those on lower incomes, to find affordable housing.

Development and Infrastructure
To accommodate the growing population, there has been a surge in development and infrastructure projects in South East Queensland. New residential developments, apartment complexes, and infrastructure improvements, such as upgraded transportation networks and amenities, have been implemented to meet the demand. This development activity has not only provided additional housing supply but has also boosted the local economy.

Overall, South East Queensland's population explosion has had a profound impact on the property market. While it has created economic opportunities and new development, it has also posed challenges in terms of housing affordability. As the population continues to grow, it is crucial for policymakers and stakeholders to consider strategies that balance housing supply and demand to ensure sustainable and affordable housing options for all.