Brisbane Property Investment Overview
Landmark White, valuation consultants on the Gold Coast, believe Queensland is somewhat insulated from rate rises because of population growth, business investment and infrastructure spending. BIS Shrapnel (in its Residential Property Prospects 2006 - 2009 Report) nominates Queensland as the state most likely to outperform in the next three years.
In Brisbane as is the case Australia wide, affordability of housing is tight at the moment, investors are starting to look at the outer suburbs. It is expected that property prices will continue to rise, especially in South East Queensland, because demand continues to outstrip supply. An example of this is the Ipswish area which is seen as an excellent place to invest with a view to solid growth and equity.
The rate of population growth in the region equates to approximately 650 new residents moving into the area each week. A conservative estimate of housing demand can be derived based on the population growth and average household size of 2.6 people. Using these figures, Greater Brisbane requires 250 new dwellings each week to provide housing for new residents, however realistically this figure is likely to be higher, given the trend towards smaller household sizes. The 'urban renewal' process has resulted in many of Brisbane's inner suburbs being transformed from industrial eyesores to premium residential / retail precincts which are now in high demand and achieving the region's highest price points for medium and high density living. The outer areas of Brisbane recorded the highest population growth rates and typically have large but very limited amounts of broad hectare land still available for sub-division.
Looking towards the future, the population of the Greater Brisbane area is conservatively projected to increase at an average rate of 1.5 percent per annum to the year 2011. By 2021, the population of the Greater Brisbane area is projected to be in excess of 3 million residents. Compared to other capital cities, Brisbane is expected to maintain one of the highest rates of growth for the nation.
Brisbane Property Investment : Details and Analysis
In the Brisbane property investment market buyer activity in the low to middle price range remains robust with both investors and owner occupiers taking advantage of the current low interest rate environment.
Underlying demand should remain high in the Queensland market with overseas migration to play an increasing role in keeping demand high. A rising deficiency in dwelling constructions and strong economic growth is expected to fuel housing demand and price growth for 2009/10. Although price growth is expected to slow slightly due to the economic slow down property investment fundamentals remain strong.
Queensland's residential property market is well placed to ride out this economic uncertainty due to continued population growth and demand for housing. Brisbane's forecast median house price of $460,000 by June 2010 represents a total rise of 26 percent over the 2007 to 2010 period. Price growth in Brisbane is forecast to be the strongest of the state's capital cities.
From the big country town of two decades ago to a modern super city in 2026, the transformation of Brisbane and southeast Queensland over the next 20 years will be beyond the imagination of many.
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