Data from Little Hinges revealed that out of 3 million virtual inspections counted over a six-month periodinterstate inspections represent 27% of all property inspections in the country.
The trend of buying on sight has grown in popularity during the pandemic, as border closures and restrictions have led buyers to get creative when looking for their next real estate purchase.
In 2020, assurvey by MCG quantity surveyors revealed that some investors started buying properties at an average distance of almost 300 kilometres, with only 6.9% of Australia-based investors buying in their home suburbs.
In a follow-up survey published in December 2021data from MCG Quantity Surveyors showed buyers investing in locations more than 200 miles from home rose from 29.5% in January 2020 to 44.65% in November 2021.
And according to Josh Callaghan, co-founder and managing director of Little Hinges, the latest data indicates that the trend is not fading anytime soon.
“We have seen no decline in the number of interstate inspections since January, which shows that the trend of shoppers shopping outside of their home country is here to stay,” Callaghan said.
The Virtual Inspection Platform noted that Queensland remained a preferred destination, particularly by those looking to exit the Sydney and Melbourne markets.
“Queensland, especially gold and The coasts remain a popular choice for interstate migration,” Callaghan said.
Data showed buyers from the two largest cities continue to lead the exodus south, contributing to one in three interstate buyers inspecting Queensland properties.
Buyers were particularly focused on the Gold Coast, which saw the most interstate inspections of any city, averaging 42% from January to June.
By comparison, Sydney sits at the bottom of the barrel with a six-month average of 10.28%. Melbourne was also not a popular choice among interstate buyers, with a six-month median of 13.6%.
Mr Callaghan predicted that as interest rates continue to rise and buyers continue to be shut out of major capital markets, there will be a “continuation in the number of people looking to move from state to state, especially to Queensland”.
He noted that sellers in markets that are currently the darlings of southern buyers have the upper hand when it comes to negotiations.
“Sellers tapping into the southern buyer pool will be able to command higher prices, even if the buyer’s market continues to loosen,” Callaghan said.
Despite these seller-friendly conditions, Callaghan said sellers need to be strategic and use available technology to get the best price for their property by tapping into potential buyers in the invisible market.