Strong growth on the cards for Brisbane, in more ways than one
It is no surprise that property price growth is one of the main benefactors that drive investors towards purchasing property in a certain area, suburb or city – or even country for that matter. But, what triggers price growth? Two of the biggest contributors are population growth and infrastructure. Fortunately, future industry projections indicate that both are well and truly on the cards for our Australian capital cities over the coming years – especially Brisbane.
First, let us take a quick glance at population growth. In the short term (from now until June 2019) when we look at the latest figures from the Department of Immigration and Border Protection (DIBP) in the table below, it is very evident that a vast majority of population growth over the next few years will be made up of students and those with a temporary working visa. You do not have to be a rocket scientist to know where the majority of these two demographics reside – yes, the CBD – where they have access to universities and colleges, as well as work. So that is one immediate tick for Brisbane right there.
While the above shows a steady growth for now, it does not really indicate how an investment property will fair over the long-term. So now we need to turn to the 2015 Intergeneration Report which takes us all the way to the year 2101.
Looking at the figures, above and below, it is clear that state governments are planning for capital cities to continue taking on a continually greater share of the state's population, particularly in the most populous states, such as Brisbane.
In keeping with these projections, by 2031 Australia’s capital cities will be home to 6.4 million extra people (around 43.4 per cent more than 2011). The growth to 2061 (15.7 million persons) is around 1 million persons more than the current combined population of all of Australia’s capital cities.
Or looked at graphically.
Note in particular the enormous projected growth in Brisbane. Again, one more big tick for Brisbane, and our CBD investors.
These are telling numbers indeed. Using this information, as we go forward it is expected that a greater share of the actual population growth must correspondingly take place in the capital cities, as confirmed by the projections.
As mentioned above, another contributing factor to a growing population is infrastructure. This is clearly on the cards for Brisbane thanks to the Queen’s Wharf, which is just one of many current developments that spring to mind.
With a strong vision for the future, the Brisbane City Council and Queensland Government’s long-term commitment to invest in critical infrastructure (such as the Queen’s Wharf) continues to transform the city and the state, with the ongoing delivery of new road, tunnel and rail links to support the competitiveness of industry and business. Queensland's average infrastructure spend from 2000 to 2010 was 75% higher than the average of other states and territories combined at $1021 per capita (Source: Queensland Infrastructure Plan, 2011).
So there you have it, as Brisbane’s population and infrastructure continues to grow, in the short-and long-term, so too will property prices. Meaning now is a very exciting time for investors to start building or expanding their property portfolio here in the Brisbane CBD. To discuss current or future opportunities, contact Hannah on 0419 782 133.