Brisbane is a hot favourite amongst property investors and with a range of infrastructure upgrades and developments pegged for the city and surrounding regions over the coming years, the trend looks set to continue. So why invest in Brisbane property? There are plenty of reasons.
Brisbane (compared to Sydney and Melbourne in particular) is more affordable and benefits from a higher income return for property investors. Many experts agree that whilst interest rates are low, Brisbane is a standout city for growing your investment portfolio.
This sentiment is echoed by investors.
According to a survey by the Property Investment Professionals of Australia (PIPA), Brisbane remains the top capital city pick, with 43 per cent of investors choosing it as their preferred destination for property investment.
So, let’s take a look at what makes Brisbane such an attractive investment location.
The population is migrating
Sydney house prices are nearly double those in the other capital cities. This, combined with rising job creation in Queensland, is creating an influx of migraters. According to research, when these factors have aligned in the past, more than 134,000 people have trekked up north over a 3-year period, predominantly out of NSW.
Wealth is transferring
Migration shifts like the one described above result in a transfer of wealth – with estimates of up to A$8.1bn of equity being injected into the Brisbane and South-East QLD housing market over the coming years. In turn, this will impact consumer spending too – boosting the Queensland economy.
As interstate migration goes up, property oversupply balances out. In Brisbane’s case, this means balancing any current oversupply of apartments whilst putting upward pressure on house prices.
The city is booming
Perhaps one of the most exciting (and important) reasons Brisbane is becoming the property investors top choice is the significant services and infrastructure upgrades taking place across the city (and beyond) over the coming years. Some highlights include:
Brisbane Live – An entertainment precinct penned to be Australia’s equivalent to New York City’s Madison Square Garden. The development will include a 17,000-seat world-class arena along with a 4,000-capacity rock club, multiplex cinemas, restaurants and bars, and a giant screen and amphitheatre to accommodate up to 15,000 people. The precinct’s other attractions include a proposed signature 90-storey residential tower and dining precinct.
Queen’s Wharf Brisbane – This will develop into a world-class tourism, leisure and entertainment precinct in the heart of the CBD, which is expected to create permanent employment to more than 8,000 workers once completed in 2022. The development is estimated to attract 1.4 million additional tourists yearly via five new premium hotel brands, three residential towers, a department store, an iconic ‘Arc’ building that will feature a Sky Deck, a riverfront moonlight cinema, a Queensland Hotel and Hospitality School operated by TAFE Queensland, and redeveloped public realm covering an area of at least 12 football fields.
Cross River Rail – This project will improve Brisbane’s public transportation landscape with a railway connecting Dutton Park and Bowen Hills. Between the destinations will be five new stations at Boggo Road, Woolloongabba, Albert Street, Roma Street and Exhibition, including 5.9km of underground tracks beneath the Brisbane River and CBD.
Herston Quarter – Upon completion in 2027, this precinct will include a 132-bed public specialist rehabilitation and ambulatory care centre, a new private hospital, childcare and aged care facilities, retirement homes, student accommodation, private apartments, dining and retail areas and renovated heritage buildings. Approximately 7,000 new jobs will be generated over the development period.
Interested in investing in Brisbane property, but not sure where to start?
As you can see, choosing to invest in Brisbane presents an incredible opportunity for property investors, but knowing where to begin can be difficult. As a specialist property investment and advisory firm, we provide our clients with responsible and informed investing advice – with expert knowledge in major Australian cities. We can assist with all aspects of the investment journey from professional guidance, to property negotiation and purchase, finance and further assistance.
Satisfy your curiosity and get in touch with our team to find out how investing up north can supercharge your wealth.
Written by Lynton Stevenson, Managing Director, Providence Property Group