_The Brisbane residential property market, why invest.

1) High ranking liveability

When measured against other cities around the world, Brisbane is placed well for liveability. In 2018, the Economist’s Intelligence Unit ranked Brisbane in 22nd position from 140 global cities based on stability, infrastructure, education, health care and environment. Mercer placed Brisbane in 35th position from 231 cities in their Quality of Life index. At the last Australian Census, the ABS ranked Brisbane 53rd most advantaged local government area according to the relative socio-economic conditions of people and households.

2) Robust economic outlook 

Queensland was one of the strongest states for economic growth (GSP) in Australia with 3.4% in 2017-18, trending above the national average of 3.1%. Over the past five years, the state averaged 2.2% annual growth, slightly below the 2.6% Australian average. The Greater Brisbane unemployment rate averaged 6.9% in March 2019.

3) Government investment

The Queensland Government has committed to investing $45 billion over the next four years on infrastructure projects. Major transport projects due in this time include the Kingsford Smith Drive upgrade, Ipswich Motorway upgrade, Brisbane Airport second runway, Brisbane International Cruise Terminal, Queen’s Wharf Brisbane & Pedestrian Bridge (phase 1), M1 transport corridor upgrade, Brisbane Metro and Cross River Rail.

4) On the itinerary for international visitors

International departure capacity at the Brisbane Airport expanded by 25% between 2012 and 2017 as reported by OAG Schedules Analyser. This is earmarked to grow further opening more routes to South-East Asia in the coming years and when the second runway opens in 2022. Each year since 2012, Tourism Australia has calculated international visitors to Brisbane has grown on average by 6.1%.

5) Growth in international students

The number of international students enrolled to study in Queensland education facilities rose 9.1%, in 2018, according to the Department of Education and Training. Higher education facilities saw growth of 11.7%, while school-aged international students grew by 5%. Brisbane is fortunate to accommodate seven world-class university campuses and numerous private schools accepting international students. The SSVF has made the process of applying for a student visa in Australia easier to navigate for both students and guardians. 

6) Relative value to other major capital cities

Brisbane houses and apartments are relatively well positioned for value on the East Coast. The median value for an apartment in March 2019 was $372,900 in Brisbane, whilst Sydney was $696,900, and Melbourne $466,900 according to APM. This was similar for houses in Brisbane with the median value being $563,700; significantly lower than Sydney ($1.03 million) and Melbourne ($809,500). Those now priced out of the these southern East Coast cities are finding value in the Brisbane market. 

7) Rental yield performance

For gross rental yield, Brisbane houses performed third strongest of all Australian capital cities with a median 4.60% in March 2019; behind Hobart (5.10%) and Darwin (4.80%) according to APM. Looking at apartment gross rental yields, Brisbane recorded 5.20%, ranking equal fourth with Hobart, behind Darwin (6.10%), Canberra (6.10%) and Adelaide (5.30%).

8) Lowered vacancy as less apartments being built

With less apartment projects starting construction, the Brisbane market is now absorbing the recently added rental stock. As a result, total vacancy has lowered to 2.2% at the end of March 2019, as reported by REIQ. In the medium term, as the population growth picks up and the economy strengthens, additional apartments will be required to meet the changing demand for low maintenance, high-density living. Growing the share of apartments in Brisbane to beyond the national average, will accommodate workers required to foster the new world city.

9) Wealth flows

Brisbane’s high-net-worth individuals (HNWIs) continue to grow. According to GlobalData WealthInsight, the number of HNWIs – those with a net worth of more than US$1 million, excluding their primary residence – is expected to grow by 22% from 2018 to 2023, to reach a total of 31,989 in Brisbane. Over the past five years, one millionaire was created every day in Brisbane, this is expected to triple to three millionaires per day over the next five years. In 2018, the number of ultra-high-net-worth individuals (UHNWIs) grew by 5%, to 245, and projected to rise another 20% over the next five years.

10) Rise of prime property

As wealth creation continues, Brisbane prime property prices grew 3.2% in the year ending March 2019. Knight Frank considers prime property to be the most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value. The other factor to consider is the global value proposition. In Brisbane, at the end of 2018, US$1m could buy 123 sqm of prime property, compared to 52 sqm in Sydney, while in Monaco, only 16 sqm could be purchased. At the same time, 22 sqm in Hong Kong and 31 sqm in both London and New York.