After a nation-wide property boom over the past few years, we are hearing more and more in the media about a property slump hitting, but does that include the Sunshine State? We take a look at the facts of why Brisbane is avoiding the property slump.
FACT 1 – Population Growth
- Brisbane is currently the fastest growing city in Australia increasing by 48,000 to 2.4 million people over the past year.
- Queensland’s populations growth remains above average for the nation and reached 5 million in May 2018.
- Fertility rates, interstate migration and overseas migration are driving this growth.
- There has been a strong increase in interstate migration from New South Wales due to more appealing lifestyle and property affordability.
FACT 2 – Foreign Buyers
- Foreign property investment fell across all States except for Queensland who experienced a four year high of 22.8% in the past quarter.
- Some are suggesting a correlation to this growth and an increase in Chinese student enrolments across Queensland.
FACT 3 – Economic Growth
- The recent Queensland budget saw confirmation of a $45.8 billion capital programme over the next 4 years.
- Not since the floods of 2011 has Queensland seen an infrastructure spend this large. This will support thousands of Queensland jobs keeping unemployment levels low.
- Projects such as the Queen’s Wharf development, Eagle Street Pier redevelopment and Brisbane Live projects will help Queensland’s economic growth.
FACT 4 – Projected Property Pricing
- Unlike its Southern counterparts who are anticipating a 10% property pricing slump, Queensland is projected to lead the nation’s capital growth over the next few years.
- The BIS Oxford Economics Residential Property Prospects 20058-2021 Report predicts a 13% growth in Brisbane housing over the next 3 years – the strongest across the nation.
- With Brisbane’s current median house price being $550,000 this is expected to grow to $620,000 in 2021 despite the apartment over supply dragging the wider Brisbane housing market down.
In summary, steady population growths combined with a good economic environment driving job creation and low unemployment rates are showing positive signs across Queensland to avoid the property slump which is predicted in other States and Territories.
Now is a great time to move into the real estate industry. If your thinking about starting a career in real estate or want to upgrade your qualification, call Validum Institute on (07) 3193 5270 today.
SOURCE: www.population.net , www.realestate.com.au , www.abc.net.au , budget.qlf.gov.au, propertyupdate.com.au, www.domain.com.au, www.smh.com.au