Logan’s affordability might be its saving grace amid indefinitely high interest rates, according to a local agent.
Cory Boyd from Ray White Marsden said the market showed “no signs of slowing down” following the reserve bank’s decision to hold rates at 4.35 per cent.
“Interest rates have not affected our sales at all,” Mr Boyd said.
“We are seeing a perfect storm of buyers entering the market.”
He said more than 60 per cent of Ray White’s buyers were investors, but they were also seeing a steady uptick of first-home buyers.
“Logan has become the go-to place for first-home buyers who are priced out of inner-city Brisbane and it’s becoming a go-to place for investors due to a boom in rental returns,” Mr Boyd said.
He said there were plenty of affordable opportunities to break into the market, even for those seeking a family home.
“We’ve got lots of affordable family homes all throughout Logan, ” he said.
“You can enter the market anywhere from $550,000 to $750,000 for a family home.”
Many economists are predicting an interest rate cut sometime this year.
CBA and Westpac economists anticipate the first cut will be in September but NAB and ANZ economists say November.
Amid these positive insights about the relatively low impact of high rates on Logan’s housing market, industry experts have once again slammed the city’s rental conditions.
Several Logan suburbs have topped the list in Suburbtrends’ latest monthly rental pain report, as they often do.
Logan Central was named as the third worst rental conditions in the country – in January it was the second worst.
Suburbtrends founder Kent Lardner said the report “revealed an alarming reality” about Logan.
“Nearly every suburb area assessed scored 75 or higher on our scale, indicating that the vast majority are experiencing severe rental stress,” Mr Lardner said.
“This underscores the urgent need for targeted interventions to alleviate the housing affordability crisis in the region.”
He said suburbs like Logan Central, Beenleigh and Waterford West hit the maximum score on the rental pain index – 100 – which “paints a stark picture of the rental market”.
“This highlights not just a localised issue but a systemic problem, calling for innovative housing solutions to address the dire need for affordable living conditions,” he said.
Mr Lardner said significant rental increases and low vacancy rates were resulting in a tightening grip of rental stress in the Logan community.
“With some areas witnessing rental affordability percentages as high as 40 per cent of income, it’s clear that the path to resolving this crisis requires more than just traditional approaches,” he said.
“We need to think outside the box, exploring options like prefabricated housing to provide faster, cheaper housing alternatives.”
