The Brisbane market is showing sizable improvements and seems to be ready for a well-overdue boom. Every significant statistic illustrates enhancement in the Brisbane property market and prices are projected to climb this year.
In recent years, many experts had forecast a boom, but Brisbane has lacked the essential growth drivers that improved markets in Sydney and Melbourne in recent years.
The last five years have seen commercial and industrial real estate achieve double-digit capital growth, and this year is already looking to make it six in a row.
However, the important parameters are starting to align for Brisbane. Population data is positive, the affordability contrast is supportive, and investors are targeting Brisbane. Infrastructure spending is beginning to show its face, which is filling the gap for what was desperately needed for the city.
Vacancy rates are improving, and 43.0% of suburban Brisbane has seen growth in annual median housing prices, with some of the stronger suburbs showing commercial-level double-digit uplift.
Although economic growth is expected to be slow-moving this year, the recent drop in interest rates (the Reserve Bank lowered the cash rate by 25 basis points to 0.50%) will make things interesting. Capital growth is beginning to pick up slightly, and Investment activity will now increase due to the lower interest rates.
While yields on office property predicted to tighten strong capital inflows are still expected for the industrial sector. We should soon see a solid increase in demand for commercial property, as well as owner-occupiers.
There is noticeable strength in the northern Brisbane suburbs of Brisbane with both the Brisbane North and Moreton Bay LGA precincts ranked as rising markets. The boost in sales activity is generating consistent price growth in these areas, well above the median for the Brisbane metropolitan area.