The COVID-norm of sight unseen buying continues to perform strongly in Logan as low interest rates and the appeal of life in the sunshine state fuels the demand.
The pattern comes as interstate buyers look to Queensland as a prime investment opportunity.
Since sight unseen took off six months ago, the Logan market has been “supercharged” by interstate investors, according to Avi Khan of Ray White Marsden.
He said investors are buying without requesting online tours or physical inspections in certain cases.
“About one-third of our buys are people seeing them online and buying on the spot, but most of them don’t even ask to see a virtual tour,” he said.
The housing market is being buoyed by low interest rates and strong interstate migration, but also that of the investor-buyer which is pricing the average buyer-occupant out of the market in certain cases.
Mr Khan said the rate of interstate buying is a product of wealth interstate investors putting money into property that might have otherwise been spent on international travel if borders were open.
Sydney-based investors are making the biggest splash.
“They are buying investments because the property market is the safest bet at the moment,” he said.
“We’re hardly selling to any local investors.”
Early this year, Australian Buyers Agents Association noted the same trend, highlight the appeal of investment properties around capital cities, particularly in regional areas.
Mr Khan said most of the investors have more equity to play with than the average person locally, so this could price owner-occupiers out of the market.
“They are competing with investors now more so than before,” he said.
“First home buyers are going to struggle to get into the market eventually because they are competing with all of these cashed up interstate buyers.”
Zishaan Omar, Ray White Rochedale South, said interstate migration and investment is strengthening an already competitive housing market.
“The market is very, very strong. You struggle to find a development under $600,000 in areas like Rochedale South and Underwood,” he said.
“Obviously, the interstate buyers have had an influence, but people have been priced out because competition is so strong.
“What that has done is increase the unit market sales because people, like first home buyers, have been pushed out.”
