Brisbane has been and continues to be, a significant centre for investment.
We’ve seen the strengths that Queensland and Brisbane have had to offer for many years, and we have seen numerous businesses set up their headquarters in the State. Queensland offers an array of business advantages including a stable economy, proactive government, and a solid growth forecast. Queensland’s highly skilled workforce, low operating costs and strategic Asia-Pacific location make it an attractive investment destination to many and the pro-business economic environment and positive forecast growth offers investors a safe, medium to long-term investment climate within a stable and resilient economy.
The future looks good. Economic growth in Queensland is forecast to strengthen to 4% in 2016-17, stronger than all other states (Queensland Government 2017) while international exports will be the key driver of growth as the liquefied natural gas (LNG) projects increase. Sectors such as property, infrastructure, energy, mining, construction, agriculture, and tourism will continue to grow and attract investment from interstate and around the world, and population growth is forecast to increase as the positive effects of the economy are felt.
As the economic centre for the South East Queensland (SEQ) region, metropolitan Brisbane accounts for nearly 63% of the 1.7 million jobs in SEQ. Of the 670,000 additional jobs forecast in SEQ by 2031, 443,000 (66%) are estimated to be located in metropolitan Brisbane. Almost two-thirds (290,000) will be in the City of Brisbane, which demonstrates the city’s role as the region’s economic driving force. The CBD and neighbouring suburbs will continue to be a key employment centre for SEQ’s widely-distributed residential population, providing approximately 380,000 jobs by 2031 (Source: Brisbane City Council 2017).
There is a strong correlation between business investment, job creation, and an increase in property prices. Business investment creates employment and jobseekers move freely in search of employment. Population growth drives the demand for property, and demand fosters competition within the property market causing property prices to increase. As a Brisbane buyer’s agent, I see first-hand how the demand for quality residential property drives prices up. There is no shortage of homeowners and investors competing for property, with prices heading north of a reasonable valuation. Population growth has certainly played a solid part with increased inquiry levels up in previous years.
In the year ending 30 June 2015, Net Interstate Migration (NIM) was a source of net population loss for New South Wales (-6,600 persons), South Australia (-3,800 persons), the Northern Territory (-3,000 persons), Western Australia (-2,000 persons), the Australian Capital Territory (-700 persons) and Tasmania (-500 persons), while Queensland (+6,400 persons) and Victoria (+10,200 persons) were the only two states to contribute positively towards NIM (Figure 1).
Figure 1
This is positive news for Queensland as people are drawn to everything that Brisbane has to offer. Even better news is that the solid population growth that we have seen in previous years is expected to continue.
Infrastructure Australia (2015) released its first ever Australian Infrastructure Audit report in 2015. It’s the first audit of its kind in Australia, stating that, ‘Australia’s population is projected to grow from 22.3 million in 2011 to 30.5 million in 2031. Almost three-quarters of this growth … is projected to be in … Sydney, Melbourne, Brisbane and Perth,’ (Figure 2).
Figure 2
That’s a lot of people moving into capital cities, and property prices will feel the pinch. We see this as positive news for anyone buying property in Brisbane.
For more information on buying property in Brisbane, contact us.
