Brisbane still top choice for property
11 March 2016
With cities around the world competing for a larger share of global capital, the Brisbane market, with its affordability, strong rental yields and lifestyle credentials continues to hold its strong position in 2016.
Brisbane has been a prime choice for investors for a while and this year is shaping up to continue the trend. Proving that when it comes to urban renewal, precinct development and major infrastructure upgrades: Brisbane is still coming out on top.
Major projects boom
It’s difficult to move around Brisbane without crossing paths with at least one of the billion dollar major projects currently underway. Australia’s largest aviation project, the $1.35 billion Brisbane airport expansion, is well advanced; while construction works have begun on the $1 billion Gateway Upgrade North project to accommodate population growth. The $1.1 billion Moreton Bay Rail Link caps off the list of major infrastructure projects in advanced stages in this part of town.
Nearer the CBD, the $3 billion RNA Brisbane Showgrounds Regeneration has reached several important milestones in recent months, with the opening of the Kingsgate commercial precinct, Rydges Hotel and the relaunch of King Street. All these major projects will continue to attract investment to Brisbane and create opportunities for business.
Lifestyle draw for Chinese investors
Brisbane will remain a strong choice for overseas investment in 2016. Lifestyle and investment returns top the list as the biggest drivers attracting Chinese property investors in particular. Brisbane City Council, Australia’s biggest Local Government Area, has been proactive at engaging with Asian countries to do business. This approach will continue to reap rewards in 2016.
Queens Wharf signals international future
Looking ahead, it’s perhaps the Queens Wharf Project that most clearly demonstrates the trajectory of Brisbane as a new international investment destination. The $3 billion integrated resort development in Brisbane’s CBD by a consortium of Australian and Hong Kong developers will show the way for other international investors looking to Brisbane and South East Queensland for large, long term tourism and infrastructure investments.
Building approvals reach new highs
Finally, with building approvals again at record levels, in Brisbane the focus remains on the growth in multi-unit residential developments. This could be both good and bad news for investors.
While research suggests supply of new apartments is far from reaching critical mass, rents have dropped slightly in many suburbs across different product types. Pockets of oversupply and investor no-go zones may catch out less informed property investors over the next couple of years; however, opportunities and overall sentiment remains strong.