Brisbane, the capital city of Queensland.
Brisbane Property Market Update for March quarter 2009*
Dec 08 – Mar 09
Mar 08 – Mar 09
|House Rent ( 3 b/r)||$340 pw||+1.5||+6.3|
|Unit Rent ( 2 b/r )||$344 pw||+3.0||+13.3|
* This is the most up to date available – property data is released 3 months after the end of each quarter.
Source: Real Estate Institute of Australia and REIQ.
Based on strong underlying supply and demand fundamentals, we continue to view the Brisbane market in a positive light with a solid outlook for the medium to long term albeit perhaps a bit more subdued over the short to medium term.
The market continues to be undersupplied and this is translating into consistently strong rental growth with values remaining fairly firm. Building approval numbers have fallen away over 2009, which means it is unlikely that the shortage of property will be addressed in the short term, which bodes well for future prospects albeit without the more tempting counter-cyclical conditions available in the Sydney market currently.
The Brisbane property investment market is greatly influenced by Queensland’s growing population. This is putting pressure on supply levels across the state, with more than 160,000 new residents predicted to move to the ‘Sunshine State’ from interstate in a five year period up to 2010. This sustained population growth, coupled with a very solid economy, ensures the state’s residential property market is likely to continue to perform very well. Combine this factor with a large amount of infrastructure and urban renewal projects, and Brisbane will continue to grow significantly.
The rate of population growth in the region equates to approximately 650 new residents moving into the area each week. A conservative estimate of housing demand can be derived based on the population growth and average household size of 2.6 people. Using these figures, Greater Brisbane requires 250 new dwellings each week to provide housing for new residents, however realistically this figure is likely to be higher, given the trend towards smaller household sizes. The ‘urban renewal’ process has resulted in many of Brisbane’s inner suburbs being transformed from industrial eyesores to premium residential / retail precincts which are now in high demand and achieving the region’s highest price points for medium and high density living. The outer areas of Brisbane recorded the highest population growth rates and typically have large but very limited amounts of broad hectare land still available for sub-division.
Looking towards the future, the population of the Greater Brisbane area is conservatively projected to increase at an average rate of 1.5 percent per annum to the year 2011. By 2021, the population of the Greater Brisbane area is projected to be in excess of 3 million residents. Compared to other capital cities, Brisbane is expected to maintain one of the highest rates of growth for the nation.