Over the last 10 years the Brisbane housing market has grown at just 3.2% per annum, a severe under-performance if compared to the Melbourne and Sydney marketplace which have both grown at over 7% in that time. It stands to reason then that the median dwelling price in Brisbane is also a lot less, sitting at just $490,000 compared to $640,000 in Melbourne and $850,000 in Sydney.
What this shows us is that Brisbane is a very affordable market compared to the other eastern states. The yields are also substantially higher being 5.2% for units compared to 3.8% and 4% for Sydney and Melbourne respectively. The drivers for the Brisbane market are definitely strong and indicates that Brisbane could be Australia’s next boom property market.
Strong Market Drivers
There are three main market drivers which are influencing Brisbane’s property market. These are:
- Rapid Population Growth
With the population set to double by 2050, through natural births, interstate and overseas migration as well as an ageing population, this means Brisbane will require 50% more homes than the city had in 2006, which is a remarkable number.
- Strong Economy
As well as rapid population growth, the economy is also looking strong, driven by the services sector and tourism, which is valued at $4.75B each year.
The third main market driver in Brisbane is in infrastructure. Brisbane is a rapidly evolving city and with the infrastructure improvements currently underway, the city is looking to be rated with a ‘new world city status’ by 2022. Some of these major infrastructure projects include:
- $3B Queens Wharf Precinct;
- $1.3B Airport Redevelopment – which will have more traffic than the Melbourne airport once complete;
- $2B Live Entertainment Arena;
- Plus, much more
Great House and Town House Options in Brisbane
Brisbane still gives you great house and town house options at affordable prices within close proximity to the CBD.
Two of the projects we are working on at the moment, are located to take advantage of the population growth and infrastructure spend with land content. These are:
- Nudgee Place House and Land has some fantastic options with 1 or 2 part contracts less than 14km from the CBD in the early $600,000’s. This is amazing value for a new house so close to the CBD.
- The second project is a positive cash flow town house project in the north west of Brisbane in the suburb of Kallangur. 3-bedroom town houses here are priced in the $300,000’s, with an easy 30-minute commute into the CBD.
Get the Free Report
So, with great affordability, strong population growth and exciting new infrastructure currently underway, now is a great time to be buying property in Brisbane. We have lots more data including a report on the supply side debate which I think you will all find interesting.
Contact your Relationship Manager to learn more about why Brisbane could be Australia’s next boom property market.