BUILDING OUR FUTURE (A SIX-PART SERIES)

PART 3: Brisbane takes off thanks to new airport development

Building Our Future is a series that takes a look at many of the new development projects, which are currently in the pipeline for the city of Brisbane. Throughout the series we put a different project under the microscope; focusing on what it is, its benefit for our local economy and, most importantly, what it means for the world of local Brisbane real estate.

Today our attention is on the Brisbane Airport… and the new infrastructure that is about to take off. This includes two new hotels and a brand new runway.

What is the project?  

Brisbane Airport is set to get two brand new hotels in 2017; the five-star, 130-room Pullman Hotel and the 3.5-star, 243-room Ibis Hotel… along with the 600-capacity, 1735 square metre Brisbane Airport Conference Centre. Both hotels will be built in the airport's domestic terminal precinct. 

Plus, who can forget the addition of Brisbane Airport's second runway in 2020!

Why are the developments needed?

When it comes to the hotel additions, Joint developer Scott Flynn, the managing director of Scott Flynn Properties said that he recognised the need for both hotels.

Mr Flynn said he was confident the business case for the $150 million development project, with its Accor-brand hotels, stacked up.

“We've done a lot of analysis, we've done a lot of research, and being the owners and operators of the Novotel down the road, we have a good understanding of what the market is demanding and what the market is looking for," he said.

"And yes, we believe there to be a market for a five-star hotel."

When it comes to the new runway, Brisbane Airport Corporation chief executive Julieanne Alroe said 22 million passengers went through the airport gates last financial year, and that number was set to double in the next two decades – clearly marking the need for a new runway.

The benefits to Brisbane

The new hotels in 2017, plus the arrival Brisbane Airport's second runway in 2020, are both expected to be a great addition to the city, from creating new jobs to helping boost tourism – domestically and internationally.

Brisbane Lord Mayor Graham Quirk said that approximately 1,000 jobs would be created… and that is only during the construction stage. Upon completion, once the hotels are operational, he believes there will be another 300 ongoing jobs available.

"One thing I've always said is that a successful city is completely dependent on a successful airport and I think vice versa," he said.

"That's why it's important that we support these projects out at the Brisbane Airport Corporation land.

"It will mean not only additional facilities and additional jobs here; it is also a further offering for our city."

The good news for investors

Sure, this development is great for Brisbane. But why for investors? Well, it comes back to the economy. When the economy is strong, so is the property market.

Often new infrastructural projects, like the Airport development, comes a major boost to the city’s employment by creating hundreds, if not thousands of new jobs.

Plus, there is also the flow on effect of Brisbane’s reputation which ultimately drives tourism to the city.

Cr Quirk said there was a 7½ per cent growth in international tourism to Brisbane last year, and he expects that those numbers will only continue to grow.

"The momentum is there following the G20 and, as a city, we're continuing to promote ourselves particularly in the Asia-Pacific region."

Positive employment and tourism on the up… this all leads back to creating a strong economy.

Investors take note… these new developments (new Airport hotels, Brisbane Live, Queens Wharf, M18, etc.) are really putting Brisbane on the map. Simply meaning, if there has even been a time to invest in property here in Brisbane… the time is now!

For more information, contact the expert team at HSBP on 0419 782 133.