Set to transform Queensland into a world-class startup destination, the Advance Queensland initiative is in full swing. Overtaking Victoria, Queensland now has the second largest number of startups in the country, behind New South Wales. With the state’s startup boom leading to significant economic growth, there’s now potential for a property boom to follow suit, and here’s why.
With the $405 million Advance Queensland initiative underway, the latest reports show that Queensland is fast-becoming the new innovation hub. Whilst New South Wales currently leads with 40.9% of Australian startups, Queensland has been steadily increasing its share from 16.5% in 2015 to 19.3% in 2016. Specialising in everything from agribusiness to software, the state’s regional areas are leading the entrepreneurial charge. Goondiwindi, Rockhampton, Emerald, Longreach, Cairns, Mackay, Charters Towers, Mount Isa and Lockhart River are helping to establish Queensland as a leading startup destination. With such a large investment in fostering startups, Queensland could soon become Australia’s most entrepreneurial state.
Queensland’s biggest startup hub, The Precinct, is now open in Brisbane’s Fortitude Valley. Designed for emerging entrepreneurs who need space to create high-growth businesses and jobs, it is a huge step forward for Queensland’s economy. With more than 80% of the building already leased to entrepreneurs and innovators, The Precinct allows startups to transform into job-creating companies.
Helping the ‘Smart State’ become the ‘Startup State’, The Precinct is a $6 million part of the Advance Queensland initiative. This new precinct aims to get the state creating jobs of the future and anticipating issues that may arise in the global economy. Connecting to startup spaces across Queensland, The Precinct is helping to foster a state-wide network of innovation and entrepreneurism.
With the launch of The Precinct and regional startup spaces, Queensland is future-proofing its ability to compete in the global economy. This startup boom is driving innovation, creating new business and jobs, strengthening the local economy, and boosting the state’s international competitiveness. As a result, the Advance Queensland initiative could also significantly impact the local property market.
As the state allocates more resources and infrastructure to startups, more entrepreneurs see Queensland as the ideal destination to launch their projects. ‘Second-generation CEOs’, baby-boomer retirees keen to put their money and skills to work, are now flocking to The Precinct and regional spaces to establish their startups. With more success stories emerging of Queensland startups transforming into high-growth companies, the state will start attracting more people and need more office space.
As a result, Queensland’s increasing number of startups could ignite population and construction booms, which would heat up the local property market. That’s because, as these startups transform into high-growth companies, they will need more employees and more office space, fast. With such a large and ongoing influx of entrepreneurs and highly-skilled employees moving to the state, demand for inner-city and regional housing will dramatically rise.
What’s more, increasing office space demand could lead to a construction boom in Brisbane and regional areas. This means that Queensland’s startup boom will also create a growing number of property investors and tenants which real estate developers and agents can pursue. It’s clear that as Queensland transforms into a world-class startup destination, the state could be about to experience significant growth, which is good news for the local property market.
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