Queensland growth stronger

Significant demand is set to be generated for Brisbane’s inner-city housing, according to property industry members.

With property development “given a huge boost” as lord mayor Graham Quirk announced last week that in the next ten years an extra 343,000 new jobs will be created in Brisbane, some are noting that this could be the start of an upturn. Developers should plan now to take advantage of this growth.

With limited development sites in the CBD, we will see more high-density developments in fringe areas of the city like South Brisbane, Bowen Hills and Newstead.
There are a number of trends evolving in CBD developments and these will influence the type of properties being developed in Brisbane in the future.

Transit-oriented-developments (TODs) are playing a big role in the design and location of new complexes and there are some great examples of TODs in areas of North America, Hong Kong and France.

“TODs will become more popular with increased workforce growth and a rise in international student numbers in the CBD, as they allow easy access to public transport and cut out the traffic.  The best area for investors as those that have good “walkability”.

There is a great deal of opportunity for developers to start capitalising on the demand, building smaller, more sustainable properties that  will meet the needs of the new workforce.

Australian Housing Outlook 2012 – 2015 was not as positive about the Brisbane market’s public sector, but does note that growth is to be expected on the back of decent economic activity.

The median house price is set to initially increase by a forecast 5 per cent over the year to June 2013 to $450,000. However, this is attributed to private sector employment flowing from strong rises in mining investment.

A 19 per cent rise is expected over the three year period to June 2015.

The report explains that with the current lower interest rates and growing upgrader and first timer demand, investors are expected to return to the market in larger numbers to capitalise on rental growth and the prospect for future capital gain.

Hundreds of new jobs are expected through employers such as Qantas, whose multi-million dollar anouncement from CEO Alan Joyce yesterday.


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