Investing in The Brisbane Property Market

Learn how to invest online and add the high returns of property development to your portfolio.

It made headlines when Westpac economists predicted that Brisbane house prices would see 20% growth by 2023. Some economists and property market analysts started claiming that we might just be on the cusp of “a property boom not seen since the turn of the century”, and that it will be Brisbane, not Sydney or Melbourne, that will be leading this boom. We’ve always been big believers in the potential of the Brisbane property market, so let’s explore some of the reasons why we think Brisbane will be seeing tremendous growth over the next few years, as the nation pulls itself out of this recession.

Brisbane property prices will surge 20% by 2023.

- Bill Evans, Chief Economist at Westpac

Job Proximity

Brisbane, particularly Brisbane’s northern suburbs, is close to five major employment hubs: the Central Business District, the Airport, the Trade Coast, Fortitude Valley, and Enoggera Barracks. Around half of Queensland’s total jobs are located in Brisbane.

Before COVID, these areas were projected to create up to 440,000 new jobs by 2031. And after COVID, the need for new jobs is stronger than ever.

QLD Total Jobs

as of Nov. 2018

Increase in jobs

1 %

since 2013

job growth

1 %

projected by May, 2023

Source: Australian Jobs 2019, employment.gov.au

Infrastructure Spend

Over the last few months we’ve seen many politicians claim that infrastructure spend will be the driving force to kickstart our economy. Well, Brisbane had already been investing a lot of money in infrastructure projects over the last few years, such as the Airport upgrade and the Cross River Rail. In this financial year, the Queensland Government will be spending $13.9 billion on infrastructure. This infrastructure creates more jobs, but also makes the city a better place to live. There are also several major private developments in Brisbane which will create more jobs and attract tourism dollars.

Queen's Wharf

$ 1 billion

brisbane Live

$ 1 billion

Capital Program 2020

$ 1 billion

“We know that for every $1 the Government spends on infrastructure the private sector spends $13, creating jobs now and long-term economic benefits into the future.”

-Priscilla Radice, CEO of Infrastructure Association of Queensland (IAQ)

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Lifestyle

Boasting a subtropical climate with 280+ days of sunshine every year, Brisbane is an energetic, vibrant city where those who love the great outdoors will find themselves at home.

With a strong vision for the future that balances progress and sustainability, Brisbane embodies the values that make Australia one of the most liveable countries in the world.

Population Growth

All of the factors listed above drive population growth, which is itself a major factor that contributes to property price growth.

Since 2015, Queensland’s annual population growth rate has risen to 1.7% in the year to June 2019 — faster than New South Wales for the second consecutive year.
Between June 2014 and June 2019, Queensland’s population grew by 8.0% or 375,450 people.
Net overseas migration (NOM) of 32,960 people was the largest driver of population growth for Queensland.
A further 22,830 people were gained through net interstate migration (NIM).
Brisbane’s population is trending older, which also comes with increased wealth and discretionary income per capita.

Once travel restrictions are eased, we can expect to see Brisbane’s net migration skyrocket over the coming years.

Where to Invest in Brisbane?

Most Affluent Suburbs

Teneriffe
Hamilton
New Farm
Chandler
Bulimba

Up-and-coming suburbs

Bridgeman Downs
Carina Heights
Everton Park
Ferny Grove
Gordon Park

Buy & Hold vs. Development

Investing in Property

While lucrative, there are several factors involved with purchasing a property as an investment that may interfere with your first time property investing. It’s also important to distinguish between gross capital gains and the final net return – property has ongoing costs that reduce final profitability.

1. High barrier to entry

Firstly, buying a property has a high barrier to entry in the form of the purchase price. Buying even a cheap home will require a deposit of over $50,000 plus another $450,000 or more in finance from a lender, which will require ongoing interest payments. In addition, there are also the ongoing expenses of owning a property such as maintenance, body corporate, and/or land tax, which will affect cash flow unless the property is positively geared.

2. Needs extensive research

Secondly, the performance of an investment property is solely influenced by the market, which means that for a property to be a successful investment it requires extensive research to choose a suitable property.

Investing in Property Developments

What many investors do not realise is that there is another investment option available that allows them to capitalise on the excellent performance of Australian property: property development. Investing a property development project can provide the benefits of an investment property (chiefly a high ROI) while overcoming these factors.

1. No hidden costs

Investing in a property development requires more funds upfront (e.g. $100,000), but doesn’t have any ongoing expenses or hidden costs that chip away at your cash flow.

2. Not dependent on market performance

While the performance of a property development is affected by market performance, it isn’t dependent upon it. As long as the combined sales price of the developed properties is higher than the cost to build them, we still achieve a profit. There are a variety of factors other than final sales price that also influence how much profit a particular development will generate. This allows investors to achieve a profit from the lucrative property market without being completely dependent on the performance of the market.

Investing in The Brisbane Property Market

Brisbane property prices will surge 20% by 2023.

- Bill Evans, Chief Economist at Westpac

Job Proximity

Infrastructure Spend

Are you eligible?

Lifestyle

Population Growth

Where to Invest in Brisbane?

Most Affluent Suburbs

Up-and-coming suburbs

Buy & Hold vs. Development

Investing in Property

1. High barrier to entry

2. Needs extensive research

Investing in Property Developments

1. No hidden costs

2. Not dependent on market performance

Contact us.

Melbourne

Brisbane

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