| For an area that relies so heavily upon the tourist trade and resources sector, the Global Financial Crisis was always going to hit the Brisbane property market hard. Residex house price trading index shows that Brisbane houses have increased by 2.35% from January 2009 to September 2009 and units by 4.01% which is way behind Sydney’s prices of 9.71% and 7.19% respectively. |
Whilst the rest of the country bounces back, recently released data shows that growth in Brisbane's property sector is the slowest in the country.
However, with low interest rates, solid growth in rents and housing shortages, the outlook for Brisbane property over the medium to long term is a far better story. BIS Shrapnel has forecast that Brisbane property will rise by as much as 16% to 2012. The growing population combined with significant infrastructure and urban renewal projects are likely to shape the future growth of the Brisbane property market into the next decade and beyond.
Growing Population
Recent figures released by the Residential Development Council indicate that Brisbane’s current estimated resident population of 1,882,961 people is anticipated to increase by 842,584 people to 2,725,545 people by 2027 – an increase of 45 per cent. Speaking at the Queensland University of Technology on 22 October 2009, Federal Treasury secretary Ken Henry said Brisbane's population would grow at twice the rate of Sydney’s and hit 4 million by the year 2049.
All these extra people will need somewhere to live. According to the State Government’s South-East Queensland’s Regional Plan, 575,000 new homes will be built in the next 20 years.
Where will these homes be built and what impact will there be upon the Brisbane property market?
South-East Queensland’s Regional Plan
The SEQ Regional Plan is the Queensland Government’s plan to manage future development and aims to proactively manage the growth by identifying a preferred settlement pattern and restricting urban sprawl.
The Plan provides that an increased proportion of the region’s population will be accommodated in the Western Corridor between Brisbane and Ipswich, reducing pressure on the heavily populated coast. Of the new dwellings that will be required, nearly half will be built in established urban areas through infill and redevelopment, and the rest in suitable undeveloped sites. No less than 80% of land in the region has been protected from future development.
With a commitment of over $100 billion by the Queensland Government to future infrastructure, the Plan proposes a number of major projects that will unquestionably impact upon the future of the Brisbane property market. These include:
- $2 billion of rail development on the Sunshine Coast including an additional line through Landsborough to Nambour and a new line to Maroochydore.
- More than $1.2 billion for new busways in Brisbane including one from Dutton Park to Capalaba and another from Enoggera Creek to bracken Ridge.
- $590 million to add a rail line from Corinda to Redbank and a new line from Darra to Springfield.
- $500 million for a rail line to Coolangatta.
Buying Brisbane Property
The unprecedented levels of population and economic growth combined with major infrastructure projects will be welcome news for the Brisbane property market and for anyone considering purchasing Brisbane property. Could there be a better time to purchase Brisbane property?
Prosper Group are experts on the Brisbane property market and provide property services to home buyers, investors and businesses.
| For more information about the Brisbane property market, areas of growth and future hotspots, call 1300 664 373 or email enquiries@prospergroup.com.au |
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