The cost of goods and services is something that ebbs and flows depending on several different factors.
In 2011 cyclone Yasi hit Queensland and greatly affected their banana plantations across the north of the state.
While we were used to seeing bananas for $2-$3 a kilo, following cyclone Yasi the price skyrocketed to almost $14 a kilo!
That’s a 21% increase!
It’s simple: supply and demand.
The demand was greater than the supply of bananas at the time – so prices increased.
If we look around supermarkets today we see a similar thing happening with the price of lettuce, with prices 5 times higher than what they once were.
In simple terms, the increased cost of lettuce is a result of supply and demand.
The rising cost of transportation, the cost of fertiliser, and limited workers to till the land have all contributed to the limited supply of lettuce, and consequently, the increased cost in supermarkets.
KFC has even started substituting lettuce with cabbage!
The same thing is happening in the Australian property market: demand is greater than the property supply available.
If supply is unable to keep up we will continue to see property prices skyrocket. Perhaps unwelcome news if you’re looking to enter the property market for the first time!
With international and interstate borders now open, we are only going to see property prices continue to climb as supply struggles to keep up with the demand.
Not to mention overseas migration is expected to hit a record high in 2022.
If you’re looking to invest in property, there are many opportunities available if you’re smart about where you purchase a property.
Queensland has experienced the most interstate migration in recent years, taking in more people than any other state.
With the 2032 Olympics set to be held in Brisbane, property prices continuing to stay at affordable levels, and job vacancies across the board, there’s a good reason many are choosing to invest in Queensland.
Choosing to invest strategically in a city or state that is affordable and predicted to grow will boast many opportunities for investors.
If you’d like to discuss your next investment property, book a discovery call today.