As Australia's third-largest city, Brisbane offers a large and diverse market for property investors. With a steadily increasing population, employment opportunities across a vast range of sectors, major plans for infrastructure, high-quality education facilities, and affordable housing, Brisbane has much more to offer than just an enviable lifestyle.
Median Property Prices
Brisbane has historically enjoyed strong population growth and economic performance, which has driven attractive returns for investors. Over the past few decades, Brisbane property has achieved excellent long-term capital growth and in the 2020-2021 period, Brisbane has seen record-breaking growth. A perfect storm of conditions including lower interest rates, wage growth, and the COVID-19 pandemic, have led to a stratospheric rise in property prices.
According to eChoice, the current median property price across all properties in the Greater Brisbane region is $548,260. In April 2021, median house prices in Brisbane were $607,969, compared to $503,265 the previous year. The average median value of a house in Brisbane is $607,969, while units have a median price of $400,866.
Home values have increased by 6.2% in the past three months to be up more than 10% annually. Homeowners in Brisbane’s most popular inner suburbs are now earning up to $50,000 per month in capital gains.
According to Tim Lawless from CoreLogic, the combination of improving economic conditions and low-interest rates is continuing to support consumer confidence which in turn has created a persistently strong demand for housing. At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency among buyers, contributing to the upwards pressure on housing prices. The pace of capital gains has slightly slowed since the end of March, seen in the lower rate of growth in home values, and a softening in auction clearance rates. However, housing values are still currently rising faster than the peak rate of growth in recent cycles.
Market Forecast
NAB had previously predicted a rise of 14% across all capital cities over 2021, but NAB chief economist Alan Oster said the bank had upgraded this to a 16% rise in Brisbane.
ANZ economists forecast Brisbane house prices will rise by 9.5% next year, as low-interest rates and government stimulus flow through the economy.
CBA now expects Brisbane house prices to increase by 16.6% to December 2022 compared to 13.7% in Sydney and 12.4% in Melbourne.
Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20% between 2022 and 2023.
Rental Returns
Brisbane's real estate continues to enjoy strong rental yields, despite falling interest rates. Investment property yields in Brisbane have consistently tracked almost a percentage point higher than in Sydney and Melbourne. Average rental returns in Brisbane are as follows:
Houses = 3.63%;
Townhouses = 4.81%
Apartments = 4.72%
Population Growth
Approximately 2.2 million people call the Greater Brisbane region home. According to the most recent census in 2016, the populace is young and skilled with 42.8% aged 25 to 54; well-educated with 22% having bachelor degrees; and culturally diverse with 18% of Brisbane households speaking a foreign language at home. Thanks to a high level of skilled migration, Brisbane has embraced an international sophistication and inherited an exceptional talent pool that displays both depth and breadth.
Brisbane has been one of the pacesetters for population growth in Australia for two decades. The population of Greater Brisbane is expected to grow to 3.18 million by 2031 with Brisbane leading the way as one of the fastest-growing capital cities in the country, according to Queensland Government Statisticians Office.
Employment
Categorised as a global city, Brisbane is among Asia-Pacific cities with the largest GDPs and is one of the major business hubs in Australia with strengths in mining, banking, insurance, transportation, information technology, real estate, and food.
The major employment sectors in Brisbane include health care and social assistance, professional, scientific, and technical services, retail trade, and education and training.
The 2016 census shows that 92.6% of Brisbane's population were employed, of which 58.8% were employed full-time. The unemployment rate in 2016 was 7.4%.
Some of the largest companies headquartered in Brisbane, all among Australia's largest, include Suncorp Group, Virgin Australia, Aurizon, Bank of Queensland, and Flight Centre.
Infrastructure
Brisbane is built on a strong foundation of infrastructure with major projects including a world-class international airport, a busy international port, a comprehensive road, and rail network, a fully integrated public transport system, vibrant entertainment, and sporting venues, and an exceptional range of accommodation options.
With a strong vision for the future, the Brisbane City Council and Queensland Government’s long-term commitment to invest in critical infrastructure continues to transform the city and the state, with the ongoing delivery of new road, tunnel, and rail links to support the competitiveness of industry and business. Queensland's average infrastructure spend from 2000 to 2010 was 75% higher than the average of other states and territories combined at $1021 per capita.
To plan for future infrastructure as Brisbane grows, Brisbane City Plan 2014 includes a local Government infrastructure plan representing around 1000 future projects worth $2 billion for stormwater, transport, parks, and land for community facilities.
Education
Brisbane is home to three world-class universities, each recognised for the quality of its graduates and research and development initiatives. Griffith University is recognised as one of Australia’s most innovative tertiary institutions - the first to offer degrees in Asian studies and environmental studies.
The Queensland University of Technology is a top Australian university with global connections and a reputation for quality undergraduate and postgraduate courses.
The University of Queensland (UQ) is the oldest university in Queensland. UQ is a founding member of the national Group of Eight, a leading group of Australian universities that conducts a significant portion of all university research in Australia, as well as one of only three Australian universities to be a member of the global Universitas 21, an alliance allowing UQ to offer students unique opportunities to participate in student exchanges and events throughout the world.
There are also several other universities operating in niche fields in and around Brisbane, including Australian Catholic University, Bond University, and University of New England.
Warm and welcoming, Brisbane offers the perfect climate for lifestyle and opportunity, business and leisure. Modern and sophisticated with a growing economy, Brisbane is a city where opportunity and lifestyle go hand-in-hand. An appetite for innovation, a reputation for collaboration, world-class industry capabilities, and a wave of new infrastructure positions Brisbane as one of Australia’s most progressive cities.
