Few markets across Australia have better prospects for growth than Brisbane’s.
It has all the major ingredients for upward movement in values, including strength in the underlying economy, a high level of spending on infrastructure and the biggest population boost from internal migration of anywhere in Australia.
It is one of the nation’s leading beneficiaries from the Exodus to Affordable Lifestyle trend and it has the prospect of significant economic and real estate uplift from the impact of the 2032 Olympic and Paralympic Games.
While some sections of the Brisbane market are currently struggling, with the previous heat in the market doused by a series of major weather events in 2022, the future for the city, its economy and its property markets looks positive.
Further confidence comes from the ranking of Queensland as the nation’s second strongest economy in the October 2022 edition of The States of the States report published by CommSec. In this report, Queensland ranks No.1 on population growth and on employment .
At Hotspotting, we believe property markets are essentially local in nature and rise or fall depending on the strength or otherwise of the local economy.
The high ranking of Brisbane and Queensland in this new national report published by CommSec gives rise to confidence that Brisbane’s property markets will produce good growth in the foreseeable future.
There are two current trends and one future trend which stand out when considering where best to buy in the Greater Brisbane area.
One is that Brisbane is part of a national trend where buyers are chasing affordability and, in the case of investors, above-average rental yields. This means the cheaper areas of the Greater Brisbane area are still attracting good demand from buyers.
Another national trend that includes Brisbane is similarly driven by the search for affordability. More buyers are opting for apartments in near-city locations where units cost less than half the price of local houses.
In Brisbane there continues to be good buyer demand for affordable apartments in near-city and middle ring suburbs.
The key future trend is one indicated by research into real estate outcomes in other cities which have hosted the Olympics and Paralympics.
The research indicates there is a considerable impact from hosting major events like this, but that the greatest impact comes before the event, not after it.
This is largely because the greatest impact derives from the investment in infrastructure needed for the Games – and the construction boom that this creates in the years leading up to the event.
And the research suggests that the suburbs close to the main Games venues are the ones that have the greatest uplift in property values.
So there is plenty in prospect for Brisbane and its property markets.
I’m expecting Brisbane to be a growth market in 2023 as population growth, a strong economy and infrastructure spending generate economic activity, jobs and demand for real estate.
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