A building company says the level of inquiry for new homes in south-east Queensland is "phenomenal," with a mass domestic migration apparently underway to the Sunshine State.
Metricon Queensland general manager Luke Fryer said new homes sales were up 80 per cent and the level of enquiry in local property had been extraordinary.
"The major relocation companies are quoting 400 per cent increases in quotes to people who are wanting pricing to relocate from Sydney and Melbourne up to the Gold Coast and Greater Brisbane," Mr Fryer said.
Interstate migration and government stimulus measures have helped boost new homes sales and building approvals across south-east Queensland, he said.
"We are seeing a significant increase in domestic migration.
"The level of enquiry and level of people committing to building a new home on the Gold Coast and south-east Queensland has really been phenomenal."
"It's been an extraordinarily positive result and response from Australians who do have certainty around their employment."
While trades and product supply pressures were currently manageable, Mr Fryer said they could become an issue later this year when more building approvals will be processed.
"Certainly trades will come under pressure in 2021, because there's only so many plumbers, so many brickies, so many electricians to go around at the moment."
'Absolutely the biggest boom'
Darryl Meehan director of Q Coast Homes said demand for renovations was unprecedented and unlike anything he had experienced in over 40 years.
"The renovation sector is doing even better than the new home market, especially on the Gold Coast," Mr Meehan said.
Mr Meehan said 2021 was looking very positive and the Federal Government's HomeBuilder and JobKeeper programs had saved the industry.
"Every builder on the Gold Coast that was able to survive through the pandemic has had an increase in volume, I would say somewhere between 20 to 25 per cent."
Mr Meehan said interstate migration was putting pressure on property prices for existing homes too.
"Any existing house that comes onto the market, it's not on the market for very long."
HomeBuilder figures show the grants have been most popular in Victoria, Queensland then NSW.
| HomeBuilder applications, as of January 1 | |||
|---|---|---|---|
| State/territory | New build | Rebuild | Total |
| NSW | 8,714 | 4,973 | 13,687 |
| Victoria | 17,382 | 4,213 | 21,595 |
| Queensland | 13,507 | 3,106 | 16,613 |
| Western Australia | 11,141 | 783 | 11,924 |
| South Australia | 5,949 | 1,479 | 7,428 |
| Tasmania | 1,521 | 291 | 1,812 |
| ACT | 1,371 | 520 | 1,891 |
| Northern Territory | 178 | 15 | 193 |
| Total | 59,763 | 15,380 | 75,143 |
Mr Fryer said real estate agents have been inundated with eager buyers and many existing homes are being sold before they even hit the market.
"They've got a book of buyers that have given them very clear instructions that if they find a property that fits their criteria to purchase it."
"Properties are selling before their listed for sale," Mr Fryer said.
"In the olden days that would be sight unseen but now with modern technology with virtual walk throughs and the like, they're able to view the property digitally and they're purchasing."
People still feel cautious
Consultant Ben Kruwinnus from Brisbane-based HWB Group echoed sentiments of optimism within the property industry.
But he said there was caution in some regions with residents choosing to scale back their projects to keep their base price down.
"That's one thing COVID has brought about, even if they have money and they've got jobs and security and equity, they're still careful about how much the total spend is going to be on a property.
"So there's still some caution there, even though the market's strong.
"They're mindful that they're not going to overcapitalise because I think they're still a little bit concerned that it could still pull back.
"There's still a bit of uncertainty in the market."
