Brisbane is the capital of Australia’s Sunshine State and the city’s property market is expected to take on a similarly bright sheen over the next few years.
Sydney and Melbourne have often been the star performers in the Australian market –Sydney grew 17.15 percent in the year to November 2014 and Melbourne’s property market increased 9.38 percent – but big questions are being asked about whether growth might slow.
Attention is now being directed towards Brisbane, which historically is about one or two years behind their Australian city cousins. Many economists are even saying it’s now roughly three years behind where Sydney is now and that Brisbane is set to play catch up.
After a period of moderate growth in the property market over the last five years, there are many reasons to suggest this might change. The population has spiked and there has also been little residential construction in the same period, which will put pressure on the market.
Demand for residential housing in Brisbane is forecast to exceed supply. By 2031, an additional 156,000 dwellings will be required, with 132,000 of these classified as apartments and townhouses.
Average annual returns have already been 11.9 percent over the past 10 years and the current rental yield of 5.33 percent is ahead of both Melbourne (4.42 percent) and Sydney (4.69 percent).
ANZ Bank’s chief economist Warren Hogan has said Australia is expecting another property price increase (15%-20%) in the next two years and Brisbane is tipped to be a property market leader this year.
It’s a view shared by All Property Solutions Singapore director Lyndon Fairbairn.
“Brisbane’s property market, out of all the property markets in Australia, is going to be the one to shine in the next two to three years and it is where the smart investors are buying right now,” he said.
“The population is ever-increasing, which is putting pressure on the housing market and rental prices, so buying now for the future will see good capital growth and high rental returns.”
One of the highlights of Brisbane’s changing property face is the Brisbane Skytower, a 274m-high, $1 billion skyscraper with 88 levels of residences. Located in Brisbane’s CBD, and overlooking the botanical gardens and a section of the Brisbane River, it’s expected to rival iconic structures like Singapore’s MBS, Melbourne’s Eureka tower or Sydney’s Sydney by Crown.
It will be the tallest building in Brisbane and reach the city’s height limit of 274m. It will feature Australia’s highest infinity pool at the tower’s crown as well as incredible recreation decks and luxury health club and spa.
A limited allocation of these apartments will be sold in Singapore, with APSS holding the exclusive rights in south-east Asia. The first batch will be available in Singapore on January 31, and it’s possible to pre-register with APSS now.
Brisbane recently hosted the G20 summit and Queensland is set to host the next Commonwealth Games in 2018. Brisbane last year adopted a new slogan – Give me Brisbane every day. It’s what savvy investors are saying, too.
This article has been contributed by APSS and for more information, visit http://www.apss.com.sg