Following another interest rate cut by the Reserve Bank of Australia this week, over 160 regions in Queensland are experiencing a rare phenomenon where buying a property is now cheaper than renting. This shift is driven by explosive rental growth and recent falls in mortgage rates, according to data from the Finder analytics platform and PropTrack over the past 12 months.
Among all the states in Australia, Queensland has the most areas where "buy at a lower price than rent", with 73 areas meeting this condition for houses and 89 areas for units.
Which regions are the most representative?
South Brisbane
Based on a down payment of 20%, the weekly mortgage payment for a unit is about $704, while the rent is as high as $770 - you can save about $264 per month after buying it.
Ipswich Brassall
The average unit sold for just £155,608, with weekly mortgage repayments of just £169 and rents of £370 – a difference of £201 per week and annual savings of more than £10,000.
Bowen Hills, Fortitude Valley, Spring Hill
Units in the above popular areas are also showing a trend of "buying at a lower price than renting", attracting a large number of tenants to consider entering the market.
Russell Island
It has become the only region in southeast Queensland where buying is cheaper than renting in the detached house market - saving $6 per week.
Outside the region: Regional cities’ potential explodes
In regional cities like Biloela and Moranbah, where house prices remain low and rents are rising sharply, the difference between buying below rent is more than $1,000 per month.
- Biloela: The house price is $350,000, the weekly mortgage payment is $380, but the average rent is as high as $650.
- Moranbah：The unit price is about $350,000, the rent is up to $700, and the payment is only $380.
Tenants turn into buyers
Michael Hatzifotis, a Brisbane CBD real estate agent, said:Currently, nearly half of the buyers in the market are actually tenants."Because rents have been rising so rapidly, many people are beginning to realize that mortgage payments are not only more cost-effective, but also a way to build equity."
With interest rate cuts and high rents, the time to buy is ripe
Analysts point out that this is a rare "entry window" for overseas investors or first-time homebuyers:
The bank interest rate has dropped to 5.81%, which is the most attractive level in recent years.
High rents and low interest rates simultaneously boost returns on property purchases
Regional cities and urban units become key targets
However, we also remind you that the formula for calculating "buying below rent" often does not include expenses such as stamp duty, legal fees and maintenance costs.
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