Brisbane construction boom set to drive property market
Sep 17, 2018
An improving Queensland economy and major infrastructure projects and developments in the works by the State Government will see significant long-term capital growth for the Brisbane property market.
RiskWise Property Research CEO Doron Peleg said with the Queensland Government taking significant steps to grow its economy, with Brisbane in the midst of a $15 billion infrastructure boom over the next few years, the local property market was likely to prosper and, as a result, the state continued to attract a high number of interstate migrants in search of affordable housing and employment.
Projects include the $5.4 billion Cross River Rail,the $3.6 billion Queens Wharf Project expected to create more than 11,000 jobs, the $1.5 billion upgrade to Eagle St Pier, $100 million dollar upgrade at the GABBA, the creation of the$2 billion Brisbane Live arena and the $944 million Brisbane Metro.
The Queensland Transport Roads and Investment Program 2018-19 to 2021-22 outlines $21.7 billion in transport and road infrastructure which is estimated to create around 19,200 jobs, while the Advance Queensland initiative is also designed to create knowledge-based jobs, drive productivity improvements and help position the state as an attractive investment destination with a strong innovation and entrepreneurial culture.
A second runway is also under way at Brisbane Airport while the $158 million Brisbane International Cruise Terminal should be operational by mid-2020.
Other major developments include the $1 billion Herston Quarter and the $2 billion Millennium Square at Bowen Hills.
Mr Peleg said it all meant good news for Brisbane investors.
“And regardless of the construction boom, southeast Queensland is an attractive destination for buyers,” he said.
“This is boosted by interstate migration, its relative affordability, lifestyle and positive capital growth projections, alongside innovation by the Queensland Government.
“In addition, when you have significant slowdown and price reductions in Sydney and decelerated prices in Melbourne, as is the case now, this traditionally means southeast Queensland attracts more interstate investments.In Sydney and Melbourne lending restrictions, the likely outcome of the Royal Commission as well as potential changes to negative gearing and capital gains tax should Labor come into power at the next Federal election, all add up to uncertainty in those markets.
“Queensland has good fundamentals right now. Relatively good housing affordability, population growth and therefore demand for houses, improved jobs and economy, weakness in other markets, and modest capital growth so it’s not an out-of-control market and the long-term outlook is extremely positive.”