Traditionally the South East Queensland market growth occurs as a result of natural cyclic pent up demand, reinforced by population immigration from the Southern States at the conclusion of their cyclic growth periods. This flow is forecast to start again over the next 1-2 years (or sooner).
Brisbane is an independent market in itself, with clearly identified sub-markets. While some areas have clearly been oversupplied with stock specifically built to satisfy the investment market, quality owner occupied stock in desirable areas is at a premium, with strong growth already occurring.
Where supply constraints exist in premium owner occupied locations, strong growth is forecast over the next 5 - 7 years. With current vacancy rates in these areas being low, supply in reasonably limited numbers, and Southern investment capital scheduled to start flowing in, the Brisbane market offers an extremely good medium to long term investment opportunity.
Over the past 5-6 years, Brisbane has enjoyed the same inner area resurgence in popularity as Sydney and Melbourne suburbs within 5 kms of the city. It has entered a significant gentrification process, inner city (CBD) residential apartments have consolidated as an alternative to suburban living, and the young professional, empty nester, and Southern State immigrant markets are constantly strengthening.
The city's lifestyle and cultural amenities have dramatically improved, with outdoor eating, entertainment and recreation, and freeway systems creating an exceptional alternative environment to the more congested and less relaxed cities like Sydney and Melbourne.
Whereas in previous decades the primary interest of Southern State immigration was either Noosa or the Gold Coast, Brisbane itself is consolidating its reputation as a primary transfer destination - with excellent access to both North and South coasts. With the new eight lane freeway direct to Surfers Paradise nearing completion, bringing the coast 45-50 minutes by car, the Brisbane environment offers sophistication, relaxed lifestyle, a strong financial / commercial centre, plus the incremental benefits of Noosa and Surfers at the doorstep when and as required.
Brisbane has generally experienced a major culture shift over the past decade. With an appreciation of the beauty of its traditional Queenslander architecture, the transformation of entire inner residential suburbs, and an increasingly sophisticated outdoor social and business lifestyle, there has been a significant evolution in residential design.
Combined with the increasingly affluent demographic sectors of moneyed interstate immigrants, young professionals in increasingly demanding work roles, and empty nesters moving out of the traditional family homes, the demand for strategically located, quality, lifestyle accommodation is consistently strong - increasingly expressed in the form of quality high rise developments offering extensive lifestyle options.
With Australia's ageing but affluent population, and the natural desire to relocate to a warmer but socially compatible climate, Brisbane is forecast to enjoy a significant growth in population, resulting in an increasing demand for quality property.
Over the past 5 - 8 years, a broad range of exceptional CBD and city fringe residential developments have established a strong foundation model for the next decade's upmarket property demand. Combined with the city's commercial and political will to rekindle an appreciation of Brisbane's gracious river and its surrounds, an entirely new and now proven property era is established. And with Brisbane's relative lack of industrial and old commercial distraction, it presents a far more cohesive residential landscape than either Sydney or Melbourne.
Brisbane enjoys a strong combination of property demand - anticipated population inflow at the conclusion of both Melbourne and Sydney property cycles, Australia's ageing population with its time honoured penchant for moving north, and the financially established young professional and local empty nester markets. Investment focus should clearly be on strategically located, blue chip residential development, offering quality lifestyle, security and a competitive environment and amenity for these clearly identifiable affluent growth markets.
