Westpac Bank has released its property forecast, with it projecting Brisbane’s property prices to grow 20% between 2022 and 2023. This level of growth matches Sydney, however, Brisbane also has a significantly lower median property price at $720,000 compared to Sydney’s $1.21 million. What this means for investors is that there is less of a financial barrier to entry to establish a significant revenue-generating asset. Find out what you need to know about Brisbane property investing, and what’s behind its meteoric rise in prices below.
Brisbane Property Investing: Mass Interstate Movement
CoreLogic data suggests that 25,350 residents moved into Queensland over the 2019-2020 financial year, likely due to the affordability of living in Brisbane compared to other capital cities, and the increasing amount of opportunity developing for work and investment. Alongside this, the increasing popularity of remote work has allowed many to work online for organisations situated in other states.
Brisbane Property Investing: Interstate Investment
As previously mentioned, Brisbane property investing may be an attractive financial move, with significant expected growth, and lower financial barriers to entry. Alongside this, Brisbane currently boasts its lowest vacancy rate since 2012 at 1.7%. This is low compared to other capital cities, with Sydney at 3.2% and Melbourne at 4.4%. If a deposit of 10% was arranged on a $600,000 home, current aggregate market estimates would see the value of that home would increase by $120,000 by the end of 2023.
Infrastructure in Brisbane
There is a significant correlation between infrastructure development and property prices. It brings investment, jobs and increased economic growth to affected areas, driving up demand for surrounding property, and in turn, prices. Here are some infrastructure projects bolstering the large interest in Brisbane property investment.
Cross River Rail
This $5.4bn rail upgrade currently under construction, with its goal to improve CBD and inner-city public transport options. This will both increase the viability and amount of public transport available for those looking to head into the city, and also ease traffic congestion by a projected 14,000 cars. Real estate analysts believe that this project could increase house values by as much as 20% in affected suburbs such as Albion, Woolloongabba and East Brisbane.
This $3bn project in the heart of Brisbane’s CBD will build 1,000 hotel rooms, 50 bars and restaurants, a casino and a residential precinct of 2,000 units. This will further develop Brisbane as a tourism and investment destination, boosting surrounding property prices as employees and tourists look local for rental opportunities.
Brisbane Airport Upgrades
This recently completed $1.1bn project saw the construction of a second runway at Brisbane Airport, and additional facilities to allow for increased passengers. This project is projected to increase annual economic activity in the Brisbane region by
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