Brisbane real estate investors in box seat
The sun is still shining on Brisbane, which continues to be one of the nation’s strongest housing markets, according to Richard Lawrence, Director, Position Property.
Demand for Queensland property continues to outstrip supply in southeast Queensland, with forward-thinking real estate investors in the box seat to secure quality properties.
That’s the insight of Richard Lawrence, Director, Position Property who says the Queensland and Brisbane property markets are in robust health.
“Despite what you may read on the state of the property market in Australia’s southern states the sun is still shining on Queensland, and Brisbane continues to be one of the nation’s strongest housing markets,” Mr Lawrence said.
“Fundamentally, demand is overwhelmingly outstripping not only current supply, but the short to medium-term pipeline of supply.
“Rental vacancies are at historic lows, with yields consistently exceeding the southern states, making the timing perfect for investors to enter the market.”
Southeast Queensland has a lot to offer in terms of lifestyle and value for money for buyers and that will only continue to improve over the next 10-plus years as Greater Brisbane prepares for the 2032 Olympic Games, he added.
The Olympic effect will see Brisbane established firmly on the global stage.
As an Olympic host city, there is so much opportunity to take advantage of through being thrust onto the world stage, and the investment in infrastructure that is coming to Brisbane in the coming decade shows that big-city growth is guaranteed, with no sign of slowing down.
“I established this business in 1999 and have seen all market cycles. When buying property, the most critical consideration is to buy with a long-term objective.
“The long-term trends will always see property values go up, no matter what the short-term cyclical factors may be.”
Chermside, just nine kilometres north of the CBD, has experienced exceptional growth in the unit market, with two-bedroom apartment growth sitting above 8 per cent and three-bedroom apartments demonstrating a staggering 26.3 per cent growth rate over the past 12 months (source: REA Group).
Identified as a satellite suburb due to its critical infrastructure and connectivity offerings, Chermside is home to two hospitals, Westfield Chermside (the second largest suburban shopping centre in Australia) and a new Northern Transitway supporting high frequency bus connections.
This combination of factors has resulted in the suburb appealing to downsizers, first-home buyers and investors alike, and with a walk score of 96 out of 100, Chermside is regarded as a walker’s paradise for essential and lifestyle amenity.
When searching for a property for investment purposes, it’s important to consider the property type.
“More and more we are seeing investors move away from the traditional investor product, and seeking out owner-occupier properties, such as larger two bedroom and three-bedroom apartments,” Mr Lawrence said.
Chermside has seen notable capital growth in these categories, with REA reporting growth of almost 10 per cent in two-bedroom apartments and more than 26 per cent in three-bedroom apartments over the past 12 months. Yields are also proving to be exceptional, with both product categories achieving over 5 per cent consistently.
Local investors making moves
Affordability of new product sets Brisbane apart from the southern states, with brand new opportunities being released in Pinnacle Residences, Chermside, starting at $569,000 for two-bed apartments totalling more than 100sq metres and three-bed residences priced from only $899,000 for more than 150sq metres.
“We’re seeing more local investors active in the market,” Mr Lawrence said.
Along with low levels of supply of good quality product, the lower-than-expected interest rate rise in October provided clear confidence to investors to make their next move.
“Buying brand new obviously also offers clear tax benefits that are worth discussing with your accountant.”
It’s clear the outlook for Brisbane to 2032 and beyond offers an array of strong fundamentals, critical in shaping long-term investment decisions.