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There’s never been a better time to invest in Brisbane

CJ van Peppen

With robust economic drivers, including strong migration, record infrastructure investment and a cost-competitive property market, Brisbane presents a compelling property investment opportunity.

Brisbane is the economic hub of South East Queensland and one of the fastest growing regions in Australia. Based on key market fundamentals, indicators and dynamics, Brisbane and South East Queensland (SEQ) are best positioned to lead the next residential property cycle in Australia.

With the current more favourable policy environment and renewed national property market sentiment, now is the time to capitalise on Brisbane’s rapid growth trajectory with a thriving $162 billion economy, and infrastructure pipeline in excess of $30 billion.

The Brisbane population currently sits at 2.4 million, and is forecast to increase by more than half a million residents to 3 million by 2029, where “real” new apartment supply is extremely limited and trending down further, due in part to financing constraints for developers with no track record of delivery.

The population is increasingly drawn to the lifestyle afforded by higher density environments including restaurants, shopping, transport and schools. Since apartments are generally closer to existing and future infrastructure, they are far more likely to experience value uplift associated with strong public and private investment.

Industry experts including BIS Oxford Economics have forecast that Brisbane will experience the highest house price growth of all capital cities over the coming three years, with Moody’s Analytics predicting that Brisbane apartment price growth will outperform houses.

Market Comparison

  • Brisbane’s recorded apartment rental yields of 5.3% as at July 2019 are significantly higher than those being achieved in Sydney and Melbourne, which have fallen to record lows of 3.7% and 4.1% respectively.
  • Brisbane’s residential vacancy rate fell to 2.4% as at July 2019, well below Sydney’s vacancy rate of 3.5% (July 2019).
  • Brisbane property is significantly more affordable when compared to Melbourne and Sydney, which were recorded as 20% and 70% respectively more expensive in 2018.

We are at the point in the cycle where you can lock in your off-the-plan property investment at today’s prices with just a 10% deposit and you don’t have to pay the reminder until the building is complete, when you should be able to take advantage of value uplift that has occurred during construction.

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