Why are long-term investors still optimistic about the Brisbane property market?
This blog post dives into the top 3 reasons and why we think Brisbane still is the place to invest.
So, without further ado…
#1: Brisbane leads the nation in interstate migration
Population growth is undoubtedly one of the largest drivers of our property market.
Queensland is currently the destination of choice for interstate migrants. In 2018, nearly half of our interstate migration came from NSW at 52,409. This represents a total of 49.45% and is the highest level we’ve seen since December 2005.
This will increase as the markets in Sydney and Melbourne continue to plateau.
#2: Brisbane is an undersupplied property market
Property prices are driven by the supply and demand of the market. If demand is greater than supply, property prices will rise as buyers compete to snatch up property.
The following chart showcases the underlying demand and the actual supply of dwellings in inner Brisbane.
Demand has been increasing steadily since 2015 and supply has not increased to match it.
This is reflected in Brisbane’s apartment market. In fact, despite being flooded with units 18 months ago, the Brisbane market has since seen close to two-thirds of apartment projects ditched or deferred.
There’s still an oversupply in some locations, but any investor worth their salt knows that these locations aren’t investment grade anyway.
#3: Stronger rental yields are beginning to attract investors
Investors have been drawn to New South Wales and Victoria’s property markets for a little while now.
However, with falling property values in Sydney and Melbourne, and substantial growth and higher yields forecast for Brisbane, investors will return.
In fact, that’s exactly what we’re experiencing at Adpen – more local and interstate inquiries than ever before.