Over the last decade, Brisbane was a major beneficiary of net interstate migration. Post-GFC, the rate of growth has been easing. There has been a steady increase in investors looking to buy in Brisbane – but what’s set to happen to the city’s investment potential in the medium to long term?
Brisbane had the biggest pre-GFC build up of over-supply out of all Australian capital cities. This, plus the infamous 2011 floods, resulted in property values declining by a combined 15 per cent during 2011-2012.
A poor climate for construction finance during 2009-2012 meant lower supply and a return to equilibrium. Building approvals are now at record levels again so pockets of oversupply and investor no-go zones will catch out less informed property investors over the next couple of years. The CBD, West End, South Brisbane, Woolloongabba, Fortitude Valley, Bowen Hills, Newstead, Hamilton, Toowong, Nundah, Chermside, Fitzgibbon, North Lakes, The Gap, Calamvale, Narangba, Murrumba Downs, Hills District are all destined for high levels of new supply.
The jobs outlook for Brisbane is healthier than given credit. In November 2014, Brisbane’s unemployment rate of 5.8 per cent compared favourably to the state and national rates of 6.7 per cent and 6.1 per cent, respectively.
Brisbane City Council, Australia’s biggest Local Government Area (LGA), has been proactive at engaging to do business with Asian countries. As a sign of the confidence that some private investors have in Brisbane, there are several new hotel developments, which have added a combined 500 new rooms.
There are some significant major projects currently underway, including a $1.35 billion airport expansion, $1 billion gateway upgrade, $3 billion RNA showgrounds redevelopment, and $1.1 billion Moreton Bay Rail Link.
Pipeline proposals include a $5.2 billion BaT Tunnel, a $3-plus billion integrated resort and casino, and an expanded medical hub at Herston.
Exposure from November’s G20 Summit and the upcoming Commonwealth Games will benefit Brisbane’s economy.
Source:- SMART PROPERTY INVESTMENT MAG