The Brisbane Property Boom
Brisbane is where the leading investors are looking whilst the Sydney and Melbourne Markets continue to cool down. A combination of great affordability disparities and a return of Chinese buying interest is making predictions of a Brisbane property Boom more a matter of when, than if.
The warning signs have been inescapable and now the numbers are impossible to deny.
Melbourne and Sydney, two markets that have brought unprecedented results over the past 5 – 10 years have reached their threshold and are gradually correcting.
But the tired cries that Australia is headed for a property apocalypse just aren’t proving to be true. Whilst Sydney and Melbourne have dropped 6.1% and 3.4% respectively in the past year, Brisbane is heading in the opposite direction with a humble .8% rise on average, with some areas averaging significantly more. The news that’s makes it even better for investors; it looks like it’s just the beginning.
While the median house price in Brisbane is still $300k behind Melbourne and with more projects in development than ever before, the smart money says you should be racing to the Sunshine State.
Forecasts and historical comparisons are showing Brisbane is ripe for significant growth over the next 3-5 years, and has historically caught up to Melbourne quite quickly. Two key factors supporting this growth are record numbers of interstate migration; Brisbane and Greater South East Queensland showing Nation leading numbers as far as job creation.
This comes as a much needed reaction to the projections showing the Southeast to be the fastest growing area in the nation over the next 3 decades.
A noticeable reaction that we have documented is that as property prices have grown in Sydney and Melbourne, many residents are taking advantage of their ability to obtain significantly nicer and larger homes in Brisbane for significantly less.
The number one prerequisite for this kind of interstate migration has always been dependant on being able to find similar employment which seems to be becoming less of a problem with a mid-year statement from CommSec Chief Economist Craig James stating,
“QLD had the strongest annual employment rate, up 4.3 percent with significant growth coming from the state’s capital.”CommSec Chief Economist Craig James stating
Historically, Brisbane follows Sydney and Melbourne, and with the median income in Brisbane and Melbourne virtually the same, yet median property prices drastically behind in Brisbane, a swift rise will not come as a surprise.
The Australian Property Market has shown clear patterns over the last 50 years and we’re seeing the seasoned investors push to capitalise on those cycles. Other factors creating excitement around South East Queensland include an unprecedented scope of infrastructure in development over the next 3 decades, as well as a population increase of nearly 40%.
Whilst we are confident that Sydney and Melbourne will rise again, we are having a very difficult time arguing with the data coming out of Brisbane and surrounds.