Brisbane is a fantastic, international city and far more affordable than Melbourne and Sydney currently are, especially when it comes to real estate.
To those investors who have not yet considered Brisbane as an investment location, well you need to check some of the strong growth that has occurred over the last 24 months and how livable the city is.
Numerous buyers have taken the interesting route of buying in Brisbane for strong capital growth and at a lower entry point with the future forecast of cashing in and trying to get into one of the big southern cities, an interesting tactic!
Infrastructure Plans
Infrastructure has an important effect on property prices and capital growth and should not be ignored when planning your investment strategy. Construction of new and more accessible roads makes a city or suburb more livable and therefore more desirable to residents. New hospitals, universities, shopping areas, public transport, cafe and eating precincts have a similar effect and increase demand in housing through more people wanting to be and live in these desirable locations. The more desirable a location, the more upward pressure on property prices in those locations.
Brisbane is really investing in major projects and look no further than Brisbane Airport.
Brisbane Airport is committing $3.8 billion AUD in infrastructure projects over the next decade. The really big project here is Brisbane Airport’s New Parallel Runway, (NPR) which will cost $1.35 billion AUD. The NPR will be 3.3km long, 60 metres wide and will be located 2km west of and parallel to the existing runway.
Highlights and claims of the project include:
- Providing the best runway system in Australia.
- Deliver a regional economic benefit of approximately $5.5 billion AUD per year by 2035.
- Create 7,800 jobs for the region due to increased capacity.
- Runway capacity will equal major world airports such as Hong Kong and Singapore.
- Tourism facilitated by the expansion will more than double to $7.6 billion AUD by 2033.
Brisbane Airport has managed to reclaim 360 hectares of soft marshland by moving millions of cubic metres of sand onto the site. The project itself will create 2700 jobs. Both the international and domestic terminals are also in the process of being upgraded as is the car parks extension project.
There have been 3 major road projects already completed in Brisbane in the last 5 years, the Clem 7 Tunnel, the Go Between Bridge and the Airport Link Tunnel. These are the Trans-Apex Project and it is part of the largest road infrastructure project in Australia’s history. It’s design once completed is to act as a ring road around Brisbane. The Northern Link is currently under construction. These projects will markedly improve cross city road travel, reduce traffic congestion and improve access to major arterial roads and the city’s growth areas.
Unfortunately, another part of the project, the Brisbane Bus and Train (BaT) project has recently been scrapped. For a full run down on what has happened, check Tony Moore’s article in the Brisbane Times.
To summarise, the Queensland Government has been planning a second river crossing for the city’s trains. There have been 3 previous plans which have all been scrapped through various state governments so lets hope they can get this right and approve and start this part of the project as public transport is vital to this and every major city.
With a major project like the Trans-Apex, many suburbs are certain to see benefit.
- Northern Suburbs 5-10km from the Brisbane CBD will benefit significantly from the recently opened airport link tunnels. Hotspots to watch are the suburbs of Stafford, Kedron, Gordon Park and Nundah. These suburbs are situated close to the major tunnel feeder roads.
Residents in these areas are now enjoying a dramatically shorter commute to the city. Adjacent suburbs of Stafford Heights, Everton Park, Chermside, Wavell Heights and Northgate are also likely to benefit.
- The Clem Jones Tunnel is especially likely to benefit residents in the Inner Southern suburbs(Woolloongabba, South Brisbane, East Brisbane) and Inner Northern suburbs (Bowen Hills, Herston, Windsor and Wilston). Hotspots to watch are Bowen Hills and Woolloongabba.
- The Go-Between bridge will have its greatest impact on suburbs of West End and South Brisbane, with less effect on the inner northern suburbs of Paddington, and Milton.
- The yet to be completed Legacy Way will undoubtedly lead to a number of hotspots in the Western suburbs, especially those 5-10km from the CBD. These suburbs include Toowong, Taringa, Indooroopilly, Bardon and Chapel Hill.
- The inner-west orbital tunnel will improve access for northern and western suburbs especially those around 10 km from the CBD particularly Everton Park, as well as Gaythorne, Enoggera, and Mitchelton.
On the public transport side, the Eastern and Northern Bus Way have already been started with the first 2 stages open. The Moreton Bay Rail Link is already under construction and the likely completion date is next year.
As we discussed above, other infrastructure projects and amenities will provide a substantial benefit, not just transport and Brisbane is also investing here with the Gold Coast university Hospital, Queensland Children’s Hospital and the Sunshine Coast University Hospital also either completed or under construction.
Several property observers have mentioned the South East Queensland region or “triangle” as a property hot spot and a place to invest. That is a fairly broad triangle and there will be hits and misses within such a large area but South East Queensland is developing at a rapid rate. Speak to a professional and investigate if this is an area that suits your investment needs.
Contact Stephen McGee who is the Queensland State Manager of National Property Buyers for further insights.