The Great Migration Shift: QLD vs NSW and Victoria
Landlords are following the great migration shift. Discover why QLD is outperforming VIC & NSW for affordability, rental yields, and short-term returns
Landlords are following the great migration shift. Discover why QLD is outperforming VIC & NSW for affordability, rental yields, and short-term returns
Australia’s internal migration landscape has shifted dramatically over the past few years — and landlords are taking notice. Since the onset of the pandemic, Queensland has emerged as the clear winner in population growth, attracting tens of thousands of new residents from New South Wales and Victoria.
According to the Australian Bureau of Statistics, Queensland recorded the highest net interstate migration of any state, with more than 40,000 people moving north in the past 12 months alone. In contrast, both NSW and VIC saw net population losses. This trend isn’t just a short-term response to lockdowns — it reflects deeper shifts in lifestyle preferences, affordability, and regional opportunity.
More people moving to Queensland means:
Many of these new arrivals are remote workers, young families, and downsizers seeking space, sunshine, and affordability — all of which Queensland delivers in spades. For landlords, it signals a market with rising rental yields, growing property values, and sustained demand for both long-term and short-term accommodation.
In markets like inner Melbourne and Sydney, high purchase prices and relatively flat rental yields have made it harder to achieve strong cash flow. Queensland — especially the South East — is fast becoming the preferred alternative for savvy investors.
Whether you already own property in NSW/VIC or are considering a new purchase, the numbers suggest it may be time to follow the migration trend — and your returns — north.
One of the biggest reasons landlords are redirecting their investment focus to Queensland is simple: the numbers stack up better.
Sydney and Melbourne may still carry prestige, but they also come with sky-high entry prices and lower rental yields. In contrast, Queensland — particularly Brisbane and the South East — remains relatively affordable and offers stronger returns, especially for landlords open to short-term letting strategies.
As of late 2024, the median house price in Brisbane sits just under $900,000, while units average around $550,000. Compare that to Sydney, where the average house is over $1.6 million and units sit well above $800,000, and it’s clear Queensland offers far more bang for buck. Even Melbourne, with a median house price just over $1 million, is significantly less affordable than many high-demand Queensland suburbs.
This price difference gives landlords two major advantages:
When it comes to rental yields, the gap widens further. In inner Sydney or Melbourne, long-term rental yields often hover around 2.5 to 3 percent. In Brisbane, it's common to see long-term yields of 4.5 to 5 percent — and in outer suburbs or high-demand coastal pockets, yields can stretch even higher.
But the real upside comes when you unlock the short-term rental potential.
In areas like the Gold Coast, Sunshine Coast, and Brisbane’s inner ring, short-term rentals often command nightly rates of $200 to $300 for a two-bedroom apartment. When occupancy is managed well — often 65 to 80 percent depending on the suburb and season — this can easily translate into net returns of 8 to 10 percent or more, especially with professional pricing and hosting support.
A two-bedroom apartment in South Yarra might earn $550 per week on a traditional lease. Meanwhile, a similarly priced apartment in Brisbane’s New Farm — marketed as a short-stay with strong guest appeal — could generate $200+ per night. Even at moderate occupancy, that’s a significant uplift in income potential, not to mention the flexibility to use the property yourself.
For landlords seeking higher returns and more flexibility, Queensland isn’t just a more affordable place to buy — it’s one of Australia’s most active and profitable short-term rental markets.
Unlike Victoria and New South Wales, where councils have tightened regulations and capped the number of days a property can be rented on platforms like Airbnb, much of Queensland remains open and landlord-friendly. That flexibility, paired with strong tourism numbers and population growth, has made cities like Brisbane, Gold Coast, and the Sunshine Coast hotspots for short-stay accommodation.
Well-managed Airbnb properties in these regions can achieve net yields of 8–10 percent or more, depending on size, location, and seasonality. Compared to traditional rentals in Sydney or Melbourne, where net returns after expenses often sit below 3 percent, the uplift is significant.
Many landlords also find that short-stay guests take better care of their property, with professional cleaning between visits and minimal wear-and-tear from long-term occupancy.
There’s a reason Queensland consistently tops the list for internal migration: it offers a lifestyle that people are actively chasing. And for landlords, that lifestyle appeal translates into higher demand — both from long-term tenants and short-stay guests — which helps drive stronger, more consistent returns.
Queensland offers something Sydney and Melbourne often can’t: sunshine, coastal living, and breathing room. In cities like Brisbane and the Gold Coast, it’s still possible to find properties near the beach or river that offer space, walkability, and greenery — all at a lower cost than an inner-city apartment in NSW or VIC.
For tenants and travellers alike, this means:
The rise of remote work has only supercharged the appeal of Queensland. People aren’t just moving here for a holiday — they’re moving here to live and work, which has reshaped the rental landscape.
In suburbs like Teneriffe, West End, or Coolangatta, short-stay guests often blend leisure with business. That means they’re not just looking for a place to sleep — they want high-speed Wi-Fi, natural light, balconies, and access to cafés, gyms, and the beach. If your investment property ticks these boxes, you can command a premium nightly rate.
When the surrounding lifestyle becomes part of your property’s appeal, you don’t just earn more — you reduce vacancy. Queensland’s liveability isn’t just a nice-to-have; it’s a core value driver for landlords leaning into the short-term rental model.
If Queensland’s current trajectory is strong, its future looks even better — especially for property owners positioned in South East Queensland (SEQ). The upcoming 2032 Brisbane Olympics is more than just a sporting event. For landlords and investors, it represents a once-in-a-generation catalyst for infrastructure, tourism, and sustained growth.
Hosting the Olympics has already triggered an estimated $7 billion in infrastructure investment across SEQ. Key projects include:
These aren’t just temporary improvements. They’ll fundamentally reshape how people live, work, and move across the region — boosting the liveability (and value) of entire suburbs.
For landlords, this means:
While the 2032 Games are still years away, tourism is already on the rise. Brisbane is positioning itself as a global destination — and events like the Olympics help drive international awareness.
Properties located near Olympic venues, transport hubs, or tourist areas are already seeing:
Many suburbs benefiting from Olympics-related development — such as Woolloongabba, Dutton Park, Albion, and Bowen Hills — are still undervalued compared to Sydney or Melbourne equivalents. For investors, that spells strong upside potential over the next 5–10 years.
Landlords who invest early — or reposition their existing properties for short-term letting — are best placed to ride the wave of Olympic-fuelled growth.
To understand the opportunity Queensland presents, you don’t need to rely on projections — just look at the investors already making the move.
Sarah owned a two-bedroom apartment in Melbourne’s inner north. For years, it was leased to long-term tenants, generating steady — but modest — returns. After rates rose and rental legislation tightened, her net yield fell to just under 2.7%. On top of that, she was locked into a fixed lease, with no flexibility to adjust pricing or use the property herself.
In early 2023, she sold the Melbourne unit and purchased a renovated two-bed apartment in Brisbane’s New Farm — close to the river, surrounded by cafés, and walking distance to the city.
With the help of a professional short-stay manager, Sarah listed the apartment on Airbnb and Booking.com. Her average nightly rate sits at $225–$250, with seasonal spikes closer to $300. Occupancy hovers around 75%, with a mixture of tourists, professionals, and families relocating to Brisbane.
Sarah’s story isn’t unique. More landlords — particularly those who feel capped by Sydney or Melbourne — are now looking north, where short-stay demand meets lifestyle appeal and investor-friendly returns.
If you’re a landlord based in New South Wales or Victoria — or own investment property there — Queensland offers compelling reasons to reassess your portfolio.
We’re seeing a consistent trend: savvy investors are either reallocating their capital to Brisbane, the Gold Coast, or the Sunshine Coast, or they're tapping into short-term letting in QLD for higher yields, lifestyle flexibility, and more control.
1. Cash Flow–Focused Investors
If your goal is to generate strong passive income, Queensland's rental yields — particularly with short-stay properties — are among the best in the country. The difference between a 3% return in Melbourne and an 8% return in Brisbane can mean tens of thousands more each year in net income.
2. Landlords Looking for Flexibility
Airbnb gives you full control over your calendar. Queensland’s more relaxed regulations allow you to rent when you want — and stay when you want — without the strict caps and restrictions that many NSW and VIC councils are now enforcing.
3. Investors Priced Out of Sydney or Melbourne
For those looking to enter or expand their portfolio, Brisbane offers excellent long-term prospects at a fraction of the cost. The same capital that buys a modest apartment in Sydney could get you a waterfront unit or freestanding home in high-demand areas of SEQ.
Making the switch to short-term rental management can feel daunting — but with the right partner, it’s streamlined and hands-free. A good Airbnb property manager will handle guest communication, pricing, cleaning, maintenance, and even relisting strategies to keep your occupancy and ratings high.
Queensland’s appeal isn’t a blip — it’s a structural shift. The combination of internal migration, housing affordability, short-stay demand, and upcoming infrastructure (especially around the 2032 Olympics) is reshaping the investment landscape across Australia.
New South Wales and Victoria will always have economic strength, but the lifestyle equation has changed. More Australians are trading density and high costs for space, sun, and value — and that means Queensland is set to remain the country’s most in-demand region for both residents and renters.
Whether you’re sitting on underperforming property in Sydney, debating your next acquisition, or simply want to improve your returns, the current climate makes it the right time to consider Queensland — especially if you’re open to short-term rental strategies.
Landlords who act early can take advantage of growth markets before they fully mature. And with the right setup — including professional Airbnb management — the upside can go well beyond what long-term leasing in NSW or VIC can offer.
The migration of Australians from Victoria and New South Wales to Queensland is more than a trend — it’s a redirection of where people want to live, work, and invest. For landlords and property owners, the great migration shift: delving deeper into Queensland's attraction compared to Victoria and NSW reveals a clear advantage in affordability, lifestyle appeal, and rental returns. Whether you’re considering your first interstate investment or looking to improve the performance of an existing property, Queensland is positioning itself as the most landlord-friendly state for years to come.
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