Property Club has developed a cost of living index based off data dating back to 1973, tracking survey data has since been used to predict future average rent and property prices in Australia.
The results show over the next three decades the property market will tighten even further with the government pension predicted to rise by 100% in contrast.
Property Club president Kevin Young said the rental market in Queensland is now recording very low vacancy rates and this is putting an upward pressure on weekly rents.
“Our cost of living tracking survey clearly shows that this rental crisis in Queensland will not be a temporary phenomenon but will continue for many years to come,” Mr Young said.
“Back in 1973 the tracking survey reveals the average weekly rent in Sydney - covering an area within 10 kilometre radius of the CBD - was $20 which was the same as the weekly pension.
“By 2023, the average weekly rent in Sydney had jumped to $1,200 while the pension had just risen to $493 per week.
“Based on conservative modelling in a low inflation environment, it is predicted that by 2050, weekly rents in Sydney will surge by 484% to $7,019 while the pension will just rise by 100.8% to $990 per week.
Mr Young noted that the index also shows that average wages will jump by 425% over the next 28 years to 2050 which will drive up property prices by 486%.
“As a result, the average house price in Sydney will also surge from $1.2 million in 2023 to $7.3 million by 2050.
The cost of living index comes off the back of new data by SQM Research, revealing capital city rents had risen by another 1.4% over the past 30 days to 12 October – with the 12-month rise now standing at 21.8%.
REIQ calls for immediate action to tackle housing crises
On October 20, the Queensland Housing Summit will commence, and the Real Estate Institute of Queensland (REIQ) called for the state government and stakeholders to use it to address the state’s housing crisis.
REIQ CEO Antonia Mercorella said the REIQ had outlined immediate and longer-term solutions that tackle both the supply and demand sides of the equation.
“Given the current challenges of scarcity of land, labour and building supplies, the sad reality is there is no overnight solution to the serious housing supply shortage we’re facing,” Ms Mercorella said.
“However, this Housing Summit presents an opportunity to give serious consideration to a whole range of policies that could help restore some balance and reduce pressure on the market.
“It’s a chance to think innovatively about how we can better utilise and free up existing housing stock, and better plan and build for our future housing needs.”
Ms Mercorella said given the immediate need of the crisis, it was time for government to maximise existing shelter and restore property investor confidence in our state.
“There are immediate actions we could be taking now to tap into existing supply through incentives, such as providing stamp duty relief to downsizing over 55s – a win-win which allows them to move to easier-upkeep homes, while opening up housing stock for younger-growing families.” Ms Mercorella said.
Minister for Communities and Housing Leeanne Enoch said the Palaszczuk Government is taking action to address the challenges in the housing market and the increased number of new Queenslanders - by making record investments in social and affordable housing.
“We know that there are Queenslanders who are doing it tough right now, this is why the Palaszczuk Government recently boosted its $16 million Immediate Housing Response Package by $5 million to help more Queenslanders in need,” Minister Enoch said.
“This funding boost, which was an outcome of the recent Housing Roundtable, will support more critical services such as temporary emergency accommodation and specialist homelessness workers for Queenslanders who are living in insecure and unsafe situations.”
In June 2021, the Queensland Housing and Homelessness Action Plan 2021-2025 was launched to advance the next stage of the Queensland Housing Strategy 2017-2027.
The Action Plan is backed by the Palaszczuk Government’s $2.9 billion investment in social and affordable housing - the largest concentrated investment in Queensland’s history.
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