There’s been a lot of talk over the past few months about the turnaround in the Queensland economy. Couple with that some big infrastructure investments in and around Brisbane, and it’s a region that has caught our attention for property investors for all the right reasons.
Over the past couple of years, Brisbane hasn’t performed as well as we’d hoped. This has been due to an oversupply of apartments and a downturn in the Queensland economy which has led to disappointing returns for investors.
The good news for people who hold investment properties in Brisbane and the great news for those looking to invest is that the facts and the figures are signalling a big turnaround for this region.
Here’s what’s happening in South East Queensland right now:
- Queensland is now the number one state for interstate migration, up 36% to the year ending March 2018. 70% of the state’s population live in SE Qld. The pattern tends to be that people move there and rent a home, they get established and settled, figure out where they want to live and then buy a property. This is the perfect storm for both rental demand and capital growth.
- There has been a clear slowdown of construction of apartments for the past 18 months. Building approvals for apartments in Greater Brisbane were down 59.9% for the year to August 2017.
- The pressure from APRA has had a surprising result of forcing developers to create more appealing and better quality products, reducing the amount of “cookie-cutter” apartments on the market.
- The Queensland economy is well into recovery stage after the inevitable slump following the mining boom with five consecutive quarters of positive growth to September 2017 and forecast for this to continue for the next four years at least.
- $5.4 billion investment in the construction of Brisbane’s Cross River Rail, scheduled for completion in 2024. Forecast to create 1,500 jobs annually.
- $3 billion re-development of the Queen’s Wharf precinct which will house over 50 restaurants, bars and cafe and 1000 hotel beds. The construction is projected to create 2,000 jobs with 8,000 jobs ongoing upon completion in 2024.
- $2.9 billion re-development of Brisbane Showgrounds, scheduled for completion in 2026. This project will create 2,000 jobs and will add over $30 million annually to the Queensland economy.
- $1.35 billion investment is underway building a second runway at Brisbane’s International Airport. Due for completion in 2020, the will create 2,700 construction jobs over the seven-year project.
- $1.1 billion investment in a world-class health and well-being precinct in Brisbane’s northeast, scheduled for completion in 2027.
- $944 million investment in Brisbane Metro will start next year and is forecast to create 7,000 construction jobs.
- This is a lot of investment and movement for one city and it will have positive far-reaching impact throughout the SE Queensland region.
Right now I have my feelers out with my researchers and developers to find the prime properties to offer to our clients. I’ll be travelling to the region within the next few weeks so that I can see what’s going on and view project plans.
So stay tuned! I’ll be coming back to you very shortly with some great opportunities to make the most of this market that is very much in “opportunity” phase.
Please contact me if you can’t wait and I’ll make sure I pass on the information personally as soon as I’ve done my due diligence and run the numbers on the projects I’m being shown.
We love helping people become property investors and, together, we’ll figure out the investment that meets your goals.
0416 049 226