There couldn’t be many millennials in Australia who have not heard author Bernard Salt's and later millionaire Tim Gurner’s advice on how to enter the property market – stop buying avocado on toast. While the accuracy of this advice is debatable, one thing’s for certain, New South Wales median house prices have sky rocketed.
Latest results released by CoreLogic reveal the median house sales price in New South Wales has increased by 47.8% and the median house sales price in the Greater Sydney region rose by 60.8% over the last five years. The quoted growth is becoming both unsustainable and unaffordable for many individuals who are finding themselves left with no other choice but to relocate into neighbouring, more affordable states.
A continual influx of migration into Queensland was estimated to bring in $8.1 billion from wealth transfers along with further increases to the employment growth rate, according to analysis undertaken by Macquarie Private Wealth in October 2017.
The 12-month median house sales price in the Greater Sydney region sits at $985,000 while in the Greater Brisbane region, the price sits at a relatively comfy $536,000. For the majority of people leaving New South Wales, this substantial price gap combined with the rising job creation is making it a no-brainer to relocate to the sunshine state.
This is apparent in the latest results from the Australian Bureau of Statistics (ABS) revealing in the 3 months to September 2017, 45.4% of people who left New South Wales migrated to Queensland. As seen above, the clear correlation between NSW house prices and Queensland’s migration have been evident between 2001-2003 and seems to be repeating itself more recently from 2015 to date.
CoreLogic house price data ABS migration data