Brisbane Investments the Next Big Thing
Brisbane investments such as Brisbane investment properties, are going to explode in value over the next decade. Like all commodities, the value of property is affected by supply and demand. The supply and demand of property is in turn affected by several factors.
Proximity to Jobs
We all need to work for a living and that requires us to be near a place of business. As a result, all high-value suburbs are close to employment hubs. Cities, commercial districts, and industrial districts will create many jobs. So there will be demand for housing near them.
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. These areas are projected to create up to 440,000 new jobs by 2031.
Infrastructure
Having large numbers of people in proximity requires supporting infrastructure. Highways, public transport, hospitals, police, parks, telecommunications, and internet are vital. Better infrastructure results in a higher quality of life. If two suburbs are the exact same distance from the CBD but one has better infrastructure and amenities, the latter will be more valuable.
In the 2017-2018 Budget the Queensland State Government committed to spending over $40 billion on infrastructure upgrades. This includes the $5.4 billion Cross River Rail Project, $16.6 billion on healthcare, and $13.7 billion in education.
Private investment in better infrastructure and amenities is also underway. The Brisbane Airport Corporation is investing $2.2 billion in capacity-related infrastructure to support an extra runway. The Queen’s Wharf District is undergoing a $3 billion development that will add a casino, five premium hotels, fifty restaurants and bars, and more. Brisbane Live is a $2.2 billion entertainment precinct including a 15,000 person amphitheatre.
Lifestyle
Employment is a major influence behind where people live. But there’s more to life than work. People want to live in an area that supports their lifestyle. So areas that embrace and foster positive lifestyles will prosper more than areas that have no inherent lifestyle or succumb to a negative lifestyle.
Brisbane is an area with superb weather year-round and a relaxed lifestyle. The city is situated upon a bend in the Brisbane River 15 kilometres from Moreton Bay and the coast making the area popular with aquatic hobbyists. Brisbane also has a large live theatre and music scene – both popular and classical.
Population Growth
All of the factors listed above combine to drive population growth which affects the demand for housing in the Brisbane metropolitan area. Over the last three years South East Queensland has undergone a 272% growth in net interstate migration. Among other factors, this can be attributed to the increasingly relative affordability compared to other States and the lifestyle that Queensland offers. Queensland’s economy has also prospered in recent years. 2.4% growth in 2015-2016, up to 2.75% in 2016-2017 and 2017-2018, and predicted 3% in 2018-19.
Brisbane House prices have grown 20.1% between 2012 and 2017. Despite this, the Brisbane median house value is still $517,000 less than Sydney and $203,000 less than Melbourne. Rental yields are also strong at 4.2%, which is higher than Sydney, Melbourne, Perth, and Adelaide. As Brisbane becomes a more and more popular place to live, demand for housing will grow.
Those who consider Brisbane investments now will prosper as the city only continues to grow up to 2031, which is why many of our property developments are located in Brisbane.
