Investment Property Planning in Brisbane
South East Queensland Overview :
Brisbane's residential investment property market has experienced a period of consolidation as the city's property cycle moves through a period of stabilization.
It's important to note that it is normal for the investment property market to experience periods of high growth followed by short periods of stabilization during any long-term growth cycle.
Queensland property investment outlook - The Housing Industry of Australia (HIA) in its housing to 2020 report estimates that the Queensland property market will be home to an additional 379,600 households by 2020. In order to satisfy this additional demographic demand, the stock of dwellings in Queensland will need to grow by approximately 42,200 homes per year through to 2020.
In order to house its additional population, as well as eliminate the dwelling shortage which already exists, Queensland would need to build approximately 47,200 homes per annum in the years to 2020. Unfortunately this is not a realistic goal - but there is no doubt the sunshine state needs to take action to lift its levels of home building. Eventually this shortfall is likely to again put upward pressure on house prices in Queensland.
In the creation of hotspots for Brisbane investment property prices, transport infrastructure and infrastructure generally are probably the biggest influencing factors. This leads to potential for capital growth and higher rental returns, in particular the Brisbane property market has many new developments in the pipeline.
The Queensland economic outlook remains very strong with massive infrastructure projects under way in the South East Queensland region.
The Airport Link, the Inner City Bypass, the Clem 7 Tunnel to the airport precinct - as well as the Gateway Bridge Upgrade Project - are all set to improve traffic flow to the Brisbane Airport. They are also an indication of the strong potential for future capital growth in South East Queensland property values and local economic development.
The second Gateway bridge is part of the 1.9 billion dollar Gateway Upgrade project, improving one of the city's key arterial roads.
Other infrastructure projects in Queensland include: Upgrades to the Ipswich Motorway; Springfield Transport Corridor; Extension of the Eastern Busway towards Capalaba; Extension of the Brisbane to Gold Coast rail line, including the new Varsity Lakes Station that opened in late 2009; the Gold Coast Rapid Transport System, with possible completion in 2013; Gold Coast Airport runway extension and 100 million dollar terminal redevelopment; The Sunshine Coast University Hospital, which has been delayed but is tentatively due for completion in 2016.
South East Queensland’s population is expected to grow from 2.8 million to 4.4 million people by 2031. The region stretches from the Queensland-New South Wales border to Noosa in the north and 160km west to Toowoomba. It is estimated that the South East Queensland region will require more than 750,000 new homes to cope with the growing population.
Above average economic growth, low unemployment, solid household income gains and tightening rental markets will all protect house prices on the downside and underpin a renewed upswing in the years ahead.
In Brisbane we would be looking at the outer areas for stronger growth simply because they haven't had as much growth as elsewhere and often have much better rental yields, indicating more room for growth in the future.
High growth areas with new estates being established include the southern corridor through to the Gold Coast (target suburbs such as Windaroo, Pimpama, Coomera and Pacific Pines). The south western corridor of Ipswich with a lot of growth to come in areas around Springfield both in commercial and residential properties. On the northern side of Brisbane, comparable areas would be suburbs such as North Lakes, Griffin and Morayfield through to Caboolture. The northside of Brisbane in particular is developing into a huge growth area of Southeast Queensland with massive expenditure on infrastructure resulting in numerous commercial and residential estates under construction and planned for the future.
A recent report from Residex includes " an Overview of predicted growth in Brisbane " and pin points what are expected to be the top performing suburbs over the next eight years.
Upper Caboolture and Morayfield are among the top selections with a predicted growth rate of 10% per annum over the next five years and 9% per annum through to 2018.
Bellmere is close on their heels also with a forecast growth rate of 10% per annum for the next five years and 8% per annum July 2010 to July 2018.
Griffin is also expected to perform well over the next five years - 7% per annum - and 6% per annum for the 8 years period.
Australian Residential Property Planners (ARPP) sources and recommends high quality house and land packages in South East Queensland. ARPP continues to see the Queensland market as an excellent investment property option for 2012 and beyond.
Remember property investment is a long term strategy. The idea is to accumulate property during your working life without affecting your lifestyle. Property booms will inevitably slow down, but the factors that influence this are simply part of the property cycle. [see the infopack for more information on Brisbane and other Australian capital cities]
Contact us for a free information pack, or to arrange an obligation free consultation.
Back to Home Page or Request Free Information Pack