Buying property for investment has always been a great idea. No matter where you buy, land and property rates always seem to increase in value. However, some areas seem to appreciate better in value due to inherent factors. This situation is particularly obvious in Australia. Out of the several cities that are showing tremendous growth, Brisbane seems to be the best. The city and its suburbs is now considered one of the best places to invest for the future. Let us take a look at what is pushing Brisbane’s property market and why
One of the primary reasons for Brisbane’s slow yet steady growth is the South East Queensland (SEQ) Regional Plan Developments Project. Over the last 25 years, the entire SEQ region has shown a population boost of about almost 25%. Due to this population growth, there has been an increased demand for small single-family homes and apartments. In order to face the rising demand, the regional plan was established to access urban requirements, allocate land for future urban growth, plan expansion, and ensure local government, infrastructure, and jobs for the steady inflow of families. The Plan will also incorporate the need for different-sized accommodation and slowly phase out the ‘one-size-fits-all’ accommodation that is currently available in the area. According to the dilgp.qld.gov.au website, there will be an expected demand for almost 800,000 new homes in the area to cater to the growing population.
Brisbane has several economic sectors that drive business and employ more than 200,000 people in different sectors. According to the dilgp.qld.gov.au website, the city also contains area of national importance like the CBD and its adjacent employment regions, large air and sea ports, and the economic area of Australia TradeCoast. Brisbane will be the highest employer in the region as it has a competitive atmosphere, highly skilled workforce, and super-efficient transportation hubs. Industries like aviation, biotechnology, aerospace engineering, medicine and health, tourism, and manufacturing will be requiring more than 500,000 people for highly-skilled and mid-level positions. This will lead to an increased influx of people who will want to settle in the area or in the suburbs along with families.
Although the Queensland area is quite well-developed, the Government is planning additional infrastructure in high footfall or growth corridors like the Brisbane – Indooroopilly, Brisbane – Albion, Brisbane – Yeerongpilly, the future Darra – Richland railway line, the Boggo road and the North and East busways. The aim of the government is to plan and establish communities that are well-supplied with basic amenities to function as independent cities. At the same time, the communities are also expected to be well-connected ‘activity centers’ that will be located along high-frequency public transport corridors and present or future planned rail corridors. This concept will have 40-120 dwellings per hectare that will be within 20-40 minutes of convenient interconnected national transportation. Other attractive features planned for ‘activity centers’ include the following:
To ensure accommodation for all, local planning committees have also revamped their rules and regulations with Government approval. For example, building height limits are going to be changed and families will be encouraged to car-pool, use eco-friendly transportation, public transport, or switch over to pedestrian walking to ensure a clean and pollution-free living environment. City authorities have planned easy intercity travel options to reduce personal car use and intercity travel options like the following are expected to be up and running by the next decade.
When all these factors are considered, Brisbane and its surrounding areas seem like a really great place to find investment property. For investors this is really great as the demand is there and property requirements have increased as well. Furthermore, construction has increased in the city and Brisbane property prices will increase even more in the next decade. According to press releases, BIS Schrapnel has predicted a 3% increase in property rates in Queensland and other states in the coming decade. To serve the demand, the Government has also decided to increase development in suburban Brisbane. A new area consisting of 227 hectares will provide over 1,350 new dwellings along the outskirts of Brisbane. This new suburb is expected to become one of the primary investment and relocation areas in the city.
As an investor, you have to assess an area for its future growth and the Sunshine state shows tremendous potential. The area is well-developed and expected to develop even more. Singles and couples are driving the economy in the area and most of them have high-paying specialist jobs. Demand for rental property and luxury accommodation is also high and expected to increase even more. The ‘activity center’ model of development will ensure that residents get easy access to main hubs but still enjoy a village lifestyle of cafes, restaurants, schools, universities, and community areas.