As is the case with the other major capitals, most of Brisbane’s economic activity takes place in and around its CBD. Did you know that the Brisbane CBD generates approximately 20 per cent of the city’s economic growth? That is six times that of the next most productive area in the greater Brisbane area! With growth like that, it is no wonder why more and more buyers (especially investors) are opting to purchase property in the Brisbane CBD.

Why the CBD? Recently Michael Matusik wrote in an article that much of our economic activity takes place in the CBD regions because businesses are more productive when they interactive with larger number of customers, suppliers and competitors – and when they are forced to do so with more frequency.  

“Think specialisation of labour; this is the real force shaping whatever lies ahead – urban development, jobs, investment, wage growth etc,” writes Matusik. 
 
“The same phenomenon applies when looking at why larger cities are more economically productive than smaller ones, or those in other parts of country.”

Over time, as more jobs are created in our city centres, we have witnessed a vast increase in the numbers of Australians having to commute to and from work every day.

Yet, things do seem to be changing…

We are slowly seeing a shift in the way Australians think. Nowadays it appears that an increasing number of Australians want to trade in their suburban homes and long commutes for smaller pads that offer the convenience of inner-city living.

According to Matusik’s article, a large number of knowledge-based workers believe the benefits of living close to the city outweigh the higher cost of housing.

Principal of HS Brisbane Property, Hannah Schuhmann, agrees with Matusik and says that CBD apartments may offer a smaller space and generally higher expenditure for inner-city living costs. But all of this is more than compensated for with the convenience of being so central to everything - including work, cafés and shopping precincts, etc.

“Over the years we have seen a big shift in the number of people who have opted to give up their suburban three-bedroom home for a more compact CBD apartment.  

“Many Australians lead a fast pace life and need a home that can keep up… maybe one day commutes will become a thing of the past, much like the good old Hills Hoist?” says Hannah

For many CBD residents, reducing the time commuting to and from work each day is more than worth the additional cost of living.

“You cannot put a value on time. With convenience a major positive for CBD living, it is no wonder we are seeing more and more workers opting to move closer to the CBD.”

However, it is not just owner occupiers that are making this shift for a more urban way of life.

These days we are also seeing a new breed of buyer called the rent-vestor. These are people who have bought a house in the suburbs or regional areas (where buying property is more affordable) but have then opted to live in a rental space which better meets their lifestyle needs - often these properties are in the CBD where people can be closer to work and other amenities.   

Schuhmann says that rent-vesting is often a good alternative for buyers who want to live in the CBD but cannot afford to buy property there.

“Renting an apartment in the CBD while owning another property on the outskirts allows many buyers to still get the asset-appreciation on their purchase, while, at the same time, also enjoying all the benefits of city-living – meaning they can have their cake and eat it too!”

Whether you work or live in the city… or simply want an investment property that will generate significant capital, clearly (thanks to 20 per cent economic growth!) the Brisbane CBD is where it is at. Thankfully, at HSBP, this is our area of expertise. For more information on buying or investing in property here in the Brisbane CBD, contact Hannah and the team on 0419 782 133.