Brisbane to grow in the next 15 years

Brisbane to grow in the next 15 years

Brisbane to grow in the next 15 years

Australia's pre-eminent infrastructure body has recently stated that the south east corner of Queensland will grow approximately 1.4 million people over the next 15 years. This equates to an extra 700,000 homes having to be built to support this growth. Supporting infrastructure will also need to be built by governments, otherwise the traffic queues will become increasingly longer.

So what does this mean for the property investor in Brisbane? Good news I think with projections for the majority of Australia's population growth in the short term (15 years) to occur in the southeast corner of Queensland.

Major infrastructure projects that will need to be completed are the second rail crossing for the Brisbane River along with major upgrades for the M1 and gateway motorways along certain sections. Don't forget the current projects underway including the Brisbane airport's second runway and the new casino at Queens Wharf. It is also noteworthy that as Brisbane evolves into a major metropolis, more high density housing will be needed closer to transport hubs.

Whilst units and townhouses suit some investors, the intrinsic value for a residential rental property is in the land content. Therefore, one could assume that the land value and hence property prices are in good shape for the coming years. 

Of course to invest in property in Brisbane, the astute investor will also look at the property cycle and the drivers behind that cycle. As I have just said, growth is key, however the shape of the economy is also vitally important and is dictated by business confidence, employment growth and wages demand just to name a few. Interest rates will affect many of these factors as well as consumer confidence. Supply and demand is also a key ingredient in this cycle as many investors in the United States found out during the GFC with the oversupply of housing.

The old adage that the property cycle was about seven years long has not held true over the past few decades. What is apparent is that the cycles are becoming increasingly shorter and are not nationwide. Therefore, an astute property investor will look at all the ingredients needed to make an informed choice on when and where to invest.

Brisbane is showing all the right markers for the foreseeable future and has many suburbs that are great locations for increasing your property portfolio. Property management in Brisbane and surrounds is our forte and we are always ready to assist you with the management of your rental property. Remember that we offer free rental appraisals as well as preparing the gardens and lawns for the first tenant free of charge.