Inner city boost — the sky’s the limit!
The Sunshine State just got a little sunnier. In May earlier this year, the Queensland government announced a $45 billion budget to build and upgrade ‘future Queensland’. Not only will this provide a lot of jobs to the state (an estimated 38,000), but it will also improve the real estate prospects in Brisbane over the next ten years.
Of the 43 major projects slated in Queensland, 30 are located in south-east Queensland. Ranging from transport improvements (rail expansion and public transport improvement) and ambitious building projects (including a wharf rejuvenation and the redevelopment of the Brisbane showgrounds), most are central to Brisbane city.
While these upgrades benefit most of Brisbane, some areas will benefit more than others. Nowhere shows this better than Brisbane’s Inner south, where nearly $15 worth of upgrades and construction are on the books. While developments in this area have typically focused on building upwards, increasing the quality of services and businesses within a fixed area (typically walking distance to the cafes!), the proposed improvements are quite likely to push the appeal outwards as well. For an area that is already popular with newcomers to the city, infrastructure upgrades will only increase the appeal. This means that not only will prices increase in the immediate area, but upgrades and revitalised real estate should also increase demand in the nearby suburbs.
While there have been concerns about oversupply in the Inner south in the past, the market has proven that people are willing to pay for premium properties. Retail vacancies in the inner city are typically under 1%, and new projects typically reach full occupancy within two to four months. The developments and upgrades planned by the government mean that not only will new developments face new potential buyers, but existing properties will also gain newfound appeal with improved infrastructure. More amenities, better properties, great location — the appeal is obvious for buyers and investors.
Not only this, but Brisbane property prices have never been more competitive. Queensland is already Australia’s number one destination for domestic migration, and while current residents may be worried about increasing prices in the area, houses in Brisbane are often half as much as they would be if they were in Sydney or Melbourne. As development also spreads out to the outer suburbs and further north in the state, there are plenty of options for people who are still looking for quiet yet relatively central living. As more money comes into the state, the whole city will become a more attractive prospect, which in turn will strengthen prices and draw more people and businesses to the area.
With inner city employment prospects increasing, from jobs to strong property investments, there’s no reason to think that inner-Brisbane isn’t the place to invest in the next five to ten years. For those of you who feel you missed the boat with the east coast capital city boom, you might well be at the forefront of a huge property surge in Brisbane. The chance to capitalise on government spending in your own backyard is a once in a lifetime opportunity, and to do so without having to deal with Melbourne’s weather or Sydney’s traffic doubly so.