A REDLANDS estate agent says the bay islands are in the middle of the biggest property boom in more than a decade, with locals hopeful about the potential for a long sought-after rise in land values amid the rush.
It comes as Commonwealth Bank economists forecast Brisbane house prices to climb by a whopping 16.6 per cent over the next two years.
Brisbane Bayside Real Estate agency owner Jason Marshall said the islands had gone through periods of property growth in the past but nothing like what they were experiencing during the COVID-19 pandemic.
Among the drivers of the boom were first home owner grants, people seeking a safe haven away from the mainland and those dipping into their superannuation early.
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Mr Marshall said it was likely opportunists were also buying up because there was a chance property values could rise.
"Like anything, whenever there is a hint of higher growth than normal you are always going to get people who would want to capatalise on that," he said.
"I just spoke to a guy who has mates over there and they are all excited because it looks like their property might finally go up in value.
"They have had these properties for 10 to 15 years, waiting for the values to increase, paying their rates every week but nothing happens."
The bay islands have long been seen as a boon for people seeking cheap land, while locals have pushed for a bridge in the hope it would turn their bargain buy into a healthy return.
According to Mr Marshall's research, which covers the period from June 2020 to January this year, Lamb Island had seen a 48 per cent increase in council-lodged development applications on the previous year.
It was the most sought after island during the eight month boom, with Russell and Macleay islands coming in second on the back of a 23 per cent rise.
The only exception was Karragarra, the island with the smallest population, which recorded negative growth of 34 per cent during the same period.
Mr Marshall, who sells commercial property on the islands, said the figures were to be expected as the island was already well developed.
He said previous property growth on the island had dropped off after a period of time but the feeling among the community was that the current boom would last longer.
"This could be an opportunity for these islands to really shine," he said. "Where else in the world could you buy island land so close to a major city for $25,000?
"Just talking to a few people that have been over there for a long time, they feel that this boom will be a bit different and might underpin solid growth. Only time will tell."
Mr Marshall warned there could be drawbacks to an increase in island populations, including a potential strain on public transport.
"If you have 500 more applications ... I would imagine there would be an environmental impact from that point of view," he said.
"If you are going to buy a house, you have to put a septic system in because there is no sewerage.
"I would think from the volume of building and construction, there will be more demand for the ferry services which means there is more demand for parking."
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