Investment Property Planning in Brisbane

Population and Population Growth :

The Greater Brisbane region accounts for 40 percent of Queensland's total population and just over 40 percent of the state's population growth - all within 0.27 percent of the state's land mass. The estimated residential population of Greater Brisbane is approximately 1.75 million people as at August, 2006, which is 2.2 percent more residents than the year prior. This rate of growth is considerably higher than the Australian average of 1.2 percent, and 0.4 percent higher than Perth's population growth rate (Perth recorded the second highest population growth rate of any capital city statistical division).

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 :

The southeast corner of Queensland will be the destination of the future. The latest official figures show almost every major local government area in the state recorded a rise in median house prices.

The rate of growth – more than a quarter of all of Australia’s population growth over the next 25 years is expected to be in the region from Noosa to Coolangatta – will push Brisbane ahead of Melbourne as the country’s second city.

All those extra people will need somewhere to live – 575,000 new homes will be built in the next 20 years, according to the State Government’s South-East Queensland’s Regional Plan.

One of the major motivations for the plan was to legislate against sprawl and 80 percent of the land in the region has been protected from urban development.

Major new growth areas aside, much of the new housing will be concentrated around public transport and “activity centres” which may include workplaces, educational, health and community facilities and shopping centres. Many of these will be existing centres such as Chermside or Mt. Gravatt, others will be purpose-built. Traditional family homes will give way to higher density accommodation such as apartment blocks, units and townhouses in these locations.

A report by property experts KPMG predicted Brisbane will have 46 percent more dwellings in 2031 than 2001, the Sunshine Coast 63 percent more and the Gold Coast 56 percent more.

Property analyst Michael Matusik says cost will make inner-city living and impossible dream for all but a small, exclusive group and only the wealthy will be able to afford to live within a 15km radius of the central business district.

With the average house price in southeast Queensland likely to hit $1 million by 2026, he predicts up to 45 percent of people will be renting.

The SEQ Regional Plan Developments on green field sites in the southeast will incorporate a variety of housing types, sizes and designs – ending the “one-size-fits-all” sort of housing estates which have sprung up in many areas over recent Years. And the death of the Tuscan-style house may be nigh. Houses of the future will have to be designed to reflect the area’s sub-tropical climate and incorporate “passive climate controls” such as vegetation use and positioning the house on the property. Power and water efficiency will be more important and the State Government has set a target for a 25 percent reduction in water consumption over 20 years from the current 300 litres per person per day. Rainwater tanks and water recycling will become commonplace.

The Government estimates that 475,000 new jobs will be needed to support the extra population over the next two decades. The Smart State strategy has identified knowledge-based, creative industries as the growth areas. These would include aviation and aerospace (especially in the western corridor), biotechnology, information and technology, tourism and pharmaceuticals.

It is also envisaged that we will attract more professional, business and financial services away from Victoria.

The “activity centres” concept in the Government infrastructure plan is aimed at reducing the huge amount of traffic commuting across the city and across the southeast region each day. The idea is that people will live close to centres, based on key public transport hubs and they will catch buses or trains there to work, shop, use government services and recreation and leisure facilities. Major projects proposed in the plan include:

* $2 billion of rail development on the Sunshine Coast including an additional line through Landsborough to Nambour and a new line to Maroochydore.

* More than $1.2 billion for new busways in Brisbane including one from Dutton Park to Capalaba and another from Enoggera Creek to bracken Ridge.

* $590 million to add a rail line from Corinda to Redbank and a new line from Darra to Springfield.

* $500 million for a rail line to Coolangatta.

* The heart of Brisbane will be transformed over the next 20 years under a city council masterplan. Building height limits will be removed and cars discouraged as major public transport initiatives carry people into a more pedestrian-friendly central business district.

Highlights include:

* An underground city rail circuit with stations at Gardens Pt, Eagle ST, Spring Hill and Centenary Place

* An underground bus network with a station below King George Square and vehicles travelling below Roma St and Adelaide ST to connect with the inner Northern Bus way.

* A mass transit system connecting West End, the City and Fortitude Valley.

* Roma St, Edward St, Victoria Bridge and the top of Melbourne St will become pedestrian-friendly, tree-lined boulevards with traffic calming.

* Three new pedestrian and cycle bridges over the river and a bus bridge from Adelaide St. to South Bank.

* New plazas at Melbourne St. and Eagle St. and a riverside plaza at North Quay.

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.

Australian Property Investor Planning continues to recommend house and land in South East Queensland as an excellent investment property option for 2007 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 page 2 of the biannual newsletter "What causes property cycles"]

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