Over the past two years the Brisbane property market has recorded some low growth numbers after a stellar few years of growth leading up to 2006. In fact growth over the past year averaged only 4.76%pa even though the 5 year average growth achieved an impressive 14.7%pa.
What this says is that the market had to take a well earned rest as it moved into the slow growth cycle that always follows periods of exceptionally fast growth in each Australian city.
During this slowing down period, one thing did not slow, the burgeoning population heading to South East Queensland, and in particular the capital of Brisbane. The Australia Bureau of Statistics even predicts that Brisbane may become the second largest city in Australia over the next 30 years.
This continued people movement into the area has seen the vacancy factor on rental property in Brisbane fall to just 1.7% according to the latest Real Estate Institute of Australia figures for September 2006.
This is not surprising to anyone that has experienced the wonderful lifestyle of Queensland, driven primarily by the fantastic weather on offer.
With the city now becoming more vibrant socially and economically, this population growth trend is sure to continue and underpin the next surge in Brisbane property markets over the coming years.
Combine this with strong tourism numbers, healthy state economy fuelled by the resources boom and the implementation of the long awaited South East Queensland Regional Plan , Brisbane could well be regarded as the next property hot spot.
Entry prices in the Brisbane market are also quite reasonable and make it affordable for any budget to find a suitable property.
The Regional Plan will for the first time aim to predict and control growth zones and has created 4 key zones, Brisbane City, North, South and West Zones.
Each will benefit from concentrated Government investment (currently budgeted at A$66bn over the next 20 years) in improved infrastructure and centralizing of services and facilities for regional communities to prosper.
The whole of the South East Queensland region is expected to benefit from this plan, however some areas may benefit from this more than others.
These would include the city fringe suburbs such as the Southbank, Kelvin Grove and Milton, as well as suburbs directly in the path of growth plans such as Chermside to the North and Upper Mount Gravatt to the South.
I would still strongly consider the better areas such as Carindale, rather than the lower socio-economic suburbs as the incoming population has the financial capacity to seek out premium and pay the required entry price, so I do believe positioning in the better areas will prove to be more profitable.
There are some wonderful suburbs to be found all the way from the Sunshine Coast to Brisbane and down to the Gold Coast, and they are becoming more scarce and more in demand, the two key ingredients to fuel above average growth.
Perhaps now is a great time to consider Brisbane once again before it is too late.
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